Final Mortgage Approval before closing

[Eli M.]

Dear BP community,

I have a question here, once I get pre-approved for a conventional mortgage, will they check my employment status right before the closing ? And if they will, what are the possible ways they could do it?

[Melvin List]

@Eli M. They will contact your HR department just before closing to make sure you are still employed.

[Travis Dawson]

Yes. they will.

Once you find a home the real lending process will begin. They will gather information about your employer and call them to confirm current employment as well as how long you have worked there.

They will also be checking your bank statements for income.

[Bob Rowe]

Yes.

Most of the time they will call your employer and execute a VVOE (Verbal Verification of Employment) just before funding.   This is to ensure/confirm that you (and all applicants) are still employed per what is listed on the application.

If the VVOE differs, they can hold up the funding.   Reasons:  You quit, you are fired, etc...  If you have a new job in a similar line of work, then you can provide that information to the underwriters to get you to the finish line.

Its one additional layer of protection for the lender (who have been burned on this very issue in the past).

Hope this helps!

[JD Martin]

I have bought mostly cash, but have done several cash-out refis (kind of the "BRRRR" idea) and the lender called my office staff several days before closing each time.

[Harjeet Bhatti]

Final employment verification is done verbally by closing department. 

[Account Closed]

@JD Martin I'm curious to know what happens once you're 'finanially free' and you go do a cash-out refi?

[Eli M.]

thank you all for your very helpful responses!!!

Since this is my first time going through a mortgage, i am just curious to know as many details as possible.

How does the lender know whom to call? who will they call exactly and who will give the lender all the necessary info?

[Jason Little]

Hopefully you supplied your lender with accurate information about your employment, which makes it simple to look up the appropriate personnel to talk to and do a quick verbal confirmation before close. It is usually a very quick phone call. It is simply to ensure nothing has changed since your application. 

[Peter K.]

For the most part, they will look up contact info online and not just use a number you provide, but it depends on the employer.  Many larger employers use a service called The Work Number which is consistently updated and provides an automated response confirming employment status. 

Have to ask--are you trying to get around something?  Best approach is to find a really good loan officer and establish a relationship with them.  You can then ask them about the scenario you are concerned about to see what will or will not work.

[Bob Rowe]

@Jason Little ... The lender has likely already verified your employment in several ways.  

1) The pay stubs you provided.  
2) A VOE to your HR Dept or Office Mgr (this would be written).

If you are at docs, those verifications were adequate (and likely within the last several weeks).   This last check is to ensure that everything is still as verified a few weeks ago (a lot can change in a few weeks).

They can lookup your company online and ask for HR, etc...  to get to the right person.    These funding departments do this all day for each of the loans they fund...  So, it just another "task" for them.