Posted on: 11th May, 2009 11:33 am
I've been working for my employer for 7 years. We outsource our human resource functions to a third party; this is known in some circles as a Professional Employer Organization. For us, it's Administaff. Also, we switched to Administaff from another PEO about a year ago.
Administaff is listed as my employer of record; their name appears as my employer on my W-2. My company name is listed as the client company on my Administaff pay stubs.
Any tips on how this relationship should be handled on a mortgage loan application? Two things came to mind:
* What employer do I list on the application? Mine or Administaff?
* How should I record my term of employment? Administaff lists my hire date with them as being in April of last year, but lists my original hire date as in June of 2002 (which is when I did start work with this company).
I'm just looking to make sure that I don't screw up the application or raise any red flags.
Thanks!
Administaff is listed as my employer of record; their name appears as my employer on my W-2. My company name is listed as the client company on my Administaff pay stubs.
Any tips on how this relationship should be handled on a mortgage loan application? Two things came to mind:
* What employer do I list on the application? Mine or Administaff?
* How should I record my term of employment? Administaff lists my hire date with them as being in April of last year, but lists my original hire date as in June of 2002 (which is when I did start work with this company).
I'm just looking to make sure that I don't screw up the application or raise any red flags.
Thanks!
Hellow Changke,
As a mortgage consultant, I would recommend you to put the name of your original employer in your loan application form.
Now let's understand - why?
1. In your case, if you go ahead denoting the name of your PEO, the total employement history that would reflect on the loan application would be a little more than a year.However, any lender would want to look at minimum of your 2 year's employment history. Secondly, applying with the PEO's name wouldn't also be correct because they originally are not your employer.
Now, how would you clear all the potential confusion that could be created during your loan underwriting process? Simple - you need to put together the same explanation, that you gave here above today on a piece paper and submit it along with your loan application to your loan officer. Further, when the question arises about the mentioned arrangement about your employer'name - your explanation would be handy to the underwriter to understand and accordingly your loan officer can get the necessary verifications done to get things straighten.
Please do let me know, should you have any more questions
As a mortgage consultant, I would recommend you to put the name of your original employer in your loan application form.
Now let's understand - why?
1. In your case, if you go ahead denoting the name of your PEO, the total employement history that would reflect on the loan application would be a little more than a year.However, any lender would want to look at minimum of your 2 year's employment history. Secondly, applying with the PEO's name wouldn't also be correct because they originally are not your employer.
Now, how would you clear all the potential confusion that could be created during your loan underwriting process? Simple - you need to put together the same explanation, that you gave here above today on a piece paper and submit it along with your loan application to your loan officer. Further, when the question arises about the mentioned arrangement about your employer'name - your explanation would be handy to the underwriter to understand and accordingly your loan officer can get the necessary verifications done to get things straighten.
Please do let me know, should you have any more questions
list your real employer. as you noted, administaff is simply administering. i worked for united guaranty but my w2 and paychecks said the name of whatever company it was that paid me (Pro-something). i always said united guaranty, because that's where work assignments came from. hire date ought to be the original date - after all, you're still working for them
as long as you are truthful with a loan officer and can explain the circumstances, nobody is going to raise a red flag or hang up your application for delays.
just be certain to tell them up front. if you think an explanatory letter will do you some good (it likely will), then go ahead and write it. if they don't need it, they won't use it, but if somebody feels it necessary, they'll already have it in file.
as long as you are truthful with a loan officer and can explain the circumstances, nobody is going to raise a red flag or hang up your application for delays.
just be certain to tell them up front. if you think an explanatory letter will do you some good (it likely will), then go ahead and write it. if they don't need it, they won't use it, but if somebody feels it necessary, they'll already have it in file.
Shayne and George: Thank you both! This really helps. I have a lot of reading to do here on the site in the coming days and weeks. :D
Changke, you are welcome. At any given point of time if you have any questions during your loan process, let us know about it. We'd be happy to help :)
i'll second shayne's offer.