When loan companies verify self-employed income, they most commonly request the Internal Revenue Service Form 4506-T, which allows them to obtain copies of the borrower's tax returns. How does employment verification work? Obtaining employment verification is necessary to ensure that the lender can confirm that you are employed and receive income in order to be able to repay the debt on time and with interest. Many borrowers also wish to know how long it takes to verify income. However, it is rather difficult to provide a clear and unambiguous answer to this question. This process usually takes a few days up to several weeks. Is employment verification necessary? In most cases, potential borrowers perceive income verification as a hindrance that delays the loan application process. Why is an income check required as well? Many lenders screen for employment eligibility early on to ensure that borrowers are qualified for a loan. Therefore, they take care of this before the borrower spends too much time on the application process and approval. This is also why it is recommended that you avoid changing jobs when applying for a loan, as this may adversely affect your ability to pay.

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