What methods can be used to verify employment when processing a mortgage application?

The correct answer emphasizes the importance of combining various official documents to provide a comprehensive verification of employment. W-2 forms and 1099s are critical taxation documents that demonstrate reported income to the IRS, showing that the borrower has stable and verifiable income sources. Tax returns further offer insights into the borrower's overall financial situation, detailing income over a year, which can help assess their ability to repay a mortgage. The Verification of Employment (VOE) is a crucial step that allows lenders to contact the employer directly to confirm the borrower's current employment status, job title, and income.

Using a combination of these documents gives lenders a more complete view of the borrower's employment and income history, thereby reducing the risk of fraud and ensuring that the applicant can afford the mortgage they are applying for. Other methods mentioned in the incorrect options may lack the depth of verification provided by the combination of W-2s, 1099s, tax returns, and VOE.