|Posted by: Kassie Jan 29 2004, 12:08 AM
|Do all lenders verify both signer’s employment? Our loan is about to close, probably Friday. They called to verify my husband’s employment (his boss was out ) and when his boss came back in she tried the lender back and it rang like 15 times and they were unable to touch base.
I called my employer and no one has called to verify my employment. I am a teacher and they have to go through a written process to verify, so I wish they would do it asap because it will take a while.
Is it normal for them not to verify both people on the loan? And is this the final step to funding (it seems like it should be the first)? Can they fund without verifying? We both are employed where we say we are.
|Posted by: loanuniverse Jan 29 2004, 09:07 AM
Do all lenders verify both signer’s employment?
Yes, it is standard operating procedure.
Is it normal for them not to verify both people on the loan?
Chances are that both you and your husband will be verified. However, this could sometimes be done without one of you finding out exactly when. Specially if the employer is large enough.
And is this the final step to funding (it seems like it should be the first)? Can they fund without verifying?
You are right, this should be one of the first steps. However, lenders are human and some tend to leave things to the end. It could be that they tried contacting at an earlier date and could not get in touch.
Why do they do this?
When someone applies for a loan, verifications are performed as part of the process. In the residential mortgage industry, standards set by Fannie Mae and Freddie Mac require verifications. While income and employment status can be “proved” by accepting copies of the applicant’s W2s or recent pay stubs, such methods invite fraud because these documents can be easily altered.
If I were in your position, I would call the lender and ask him if everything was still on schedule, and specifically about the employment verification. Do this before the day of the closing, and insist that they call your husband’s boss again if they have not been able to contact him.
Hope this helps