4 Companies Leading the Charge in Income Verification

If you’ve ever tried to rent or buy a home, you know income verification is part of the deal. It’s not enough for lenders and property managers to see those numbers on your application. They rely on income verification methods to ensure your stated earnings are legit. That usually means reaching out to employers to verify job titles and average paycheck amounts.

Yes, sometimes there’s additional paperwork involved, such as bank statements and W-2s. However, gathering and submitting all those documents can be tricky for applicants, lenders, and landlords.

Income verification platforms streamline the process for everyone involved since they save time and potential headaches. Many of these tools connect to major payroll providers to instantly verify an applicant’s income and employment details. Below are four of the best.

1. Truework

Truework’s income verification solution combines several separate technologies and verification services into a single platform. Lenders and landlords can access an applicant’s payroll data in less than one second through Truework’s Instant service. The technology behind this income verification service syncs with the databases of some of the most popular payroll providers and software.

As a property manager or lender, you won’t have to wait for return phone calls or emails from HR departments. Instead, you can instantly see whether someone’s job title, employer, and current income match what’s on their application. But in today’s rising gig economy, not everyone has a traditional employer. You’ll run into individuals who own businesses or work as independent contractors.

In those cases, there’s no employer to call. You need 1099s, bank statements, and tax returns. Truework’s Credentials service lets self-employed applicants upload their supporting documents and verifies them with other sources like the IRS.

That said, sometimes income verifications require human-to-human contact. Truework has a Smart Outreach service that completes most manual verifications in less than 48 hours. Everyone else can skip the heavy lifting.

2. First Advantage

First Advantage verifies income and runs tenant background checks for property managers and landlords. Tenant income verification and screening services can give property managers peace of mind.

The most common risks landlords face are tenants who default on their leases or submit late rent payments. Late and missed rent payments impact an owner’s ability to pay a mortgage, maintain the property, and make a profit.

Security deposits may help hedge against potential losses. Still, tenants’ income requirements are usually at least three times the monthly rent. As a benchmark, this shows potential residents can comfortably afford the rent and are less likely to miss a payment.

First Advantage lets applicants link bank accounts and digital wallets to verify their income. Property managers get a report with account balances and income sources and amounts.

The company’s platform also offers employers background screening and compliance tools. Criminal records monitoring and I-9 forms are a couple of examples. Plus, the platform is mobile-friendly.

3. Experian

You might recognize Experian’s name as one of the three major credit reporting agencies. However, Experian also has an income verification service and platform that connects with data from the IRS.

By syncing with IRS tax returns, Experian’s platform makes it easy for lenders, other creditors, and landlords.

Experian’s website states loan underwriters can access up to four years of a person’s tax statements. The data comes through in under 48 hours, but loan applicants do have to give lenders permission. With a person’s consent, it won’t matter how they earn their income. Whether that’s from a traditional job, self-employment, or both, lenders can verify all earnings from a single point of reference.

While Experian’s service can verify personal tax returns and earnings, it also helps lenders make business loan decisions. The platform confirms business tax returns, employee wages, and contractor payments. Commercial property owners and managers may also want to use this feature when making decisions about leases. Data showcasing reliable business earnings can lead to more accurate conclusions.

4. Argyle

Argyle’s income verification platform works best for creditors that may want periodic updates about someone’s income. Think of credit cards or on-demand credit services that may adjust limits according to current earnings and account activities. Mortgage lenders can also benefit if someone wants to refinance or recast a home loan.

A recast mortgage is when a borrower makes a large lump-sum payment toward their principal balance. They then request the lender to re-amortize the loan with a new lower monthly payment based on the smaller balance.

Say your current mortgage balance is $250,000. You get a windfall inheritance of $100,00 and decide to pay down your principal. You talk to your lender and ask them to recast your mortgage payment against the remaining $150,000 balance.

While recasting is not as extensive as refinancing, lenders have different requirements. Some might want to verify income and employment again. Argyle’s platform is applicant-driven since it works when they connect their bank accounts, employers, or freelance clients.

Through the service, applicants give lenders and creditors authorization to receive verification reports and ongoing updates. Lenders will stay on top of job and income changes, including raises.

Working With Income Verification Software

Many landlords and lenders find income verification software is more efficient than contacting employers and financial institutions. The technology’s features help underwriters and property owners give applicants quick and accurate decisions. Consequently, platforms with multiple verification methods and services can mitigate creditors’ risks and provide applicants with a smoother experience.