do mortgage loan companies check your employment again before closing?

Question

I am planning on leaving my job for another after the 13 of July but we are in the middle of buying a home and I don't want to give the mortgage loan officers a reason to question if we can afford it ( WE CAN). Can I put in my resignation now to give two weeks notice or should I wait until after we close in case the mortgage people check my status. Do they do that?

Answer 1

Absolutely we check. Most companies will verbally verify your employment within the final days prior to closing your loan, though sometimes even a few days after.

At closing, you'll be required to sign an affidavit swearing that no adverse changes to your financial status have occurred since application. Quitting your job would certainly be an adverse change. Not admitting that you have terminated your employment would then be considered fraud.

If you're confident you'll qualify without your income, just tell your loan officer. If you can't qualify without, you shouldn't be buying the home or shouldn't be quitting without another job lined up. You don't want to risk losing the home you just bought, do you?

What's more important to you? Buying the home or quitting your job?

Realistically though, there's probably nothing that can legally be done to you if you put in your notice the day after closing on your home, even if the intent was then obvious. But if you put notice in, even if your final day is after you're scheduled to close on your home, whoever verifies your employment could end up being told that "yes, she works here, but has put in a resignation notice.". Then you don't get your house.

Answer 2

The underwriter will make a final employment verification check about 24 hours prior to closing. That's usually the last step in the process and if it's OK you'll be "Ready to Fund".

It's usually not a good idea to change jobs in the middle of a home purchase involving a mortgage. However if you have a stable work history and are taking a new job in your current field or a closely related one you should be OK. But, you must notify the lender of your planned job change. The underwriter will probaly want an employment committment letter from your new employer and it might add a day or two to the closing process if you wait until the last minute.

In the worst case, the underwriter calls your previous employer to verify employment and they say you're no longer there. At that point, the underwriter will stop the process cold and the deal could collapse. They'll be wondering why you tried to hide that fact that you were chaging jobs and it could take some persuasion on your part for them to not just dump the deal entirely.

Answer 3

Verification Of Employment Mortgage

Answer 4

Some lenders will verify your employment and credit report again right before close some only check employment once. You would almost have to ask your loan officer if they will. You would definetly be better off to not change anything until your loan funds.

Answer 5

Mine did just before closing, they asked for my latest pay stub and waited for closing till I got them the last month pay stub. Also some do the employement verfication just before closing. So chances are pretty high that they would verify.

Answer 6

Yes, they check. It is a funding phone call. Most lenders do it right before they hit "enter" on the wire.

Answer 7

I'm pretty sure they check again. I'd say don't put in your notice, especially if you don't have something lined up yet.

Answer 8

That's a good question, I was wondering the same thing myself

Answer 9

This is puzzling to me too