Regarding a loan application, are income and employment verified? On a refinance, what does the closing date mean? When will my old bank be paid off?
As in so many banking questions, the answer is, it depends. In most cases new consumer loans do have an income/employment verified, but this is often done with a credit bureau report and the applicant's pay stub. When you move into mortgage loans, as an example, verifications are more extensive and forms are actually sent to the employer to be completed and returned. In the case of a refinanced mortgage loan, different programs have different requirements. As an example, a VA guaranteed loan already has the guarantee and "no-verification" refinances have no additional risk. To expedite these requests, no checks are needed. So it really depends on the lender and the loan program, as to what is done.
If you apply for a mortgage loan you will often be given a projected closing date. This is the date the lender can expect to have everything done from employment, income and deposit verifications to flood and pest certifications. The payment schedule and interest charged start with this date, but bear in mind, projected doesn't necessarily mean set in stone. Many, many people have a hand in preparing a loan for approval and closing. If any of them get behind, dates can be forced back.
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As in so many banking questions, the answer is, it depends. In most cases new consumer loans do have an income/employment verified, but this is often done with a credit bureau report and the applicant's pay stub. When you move into mortgage loans, as an example, verifications are more extensive and forms are actually sent to the employer to be completed and returned. In the case of a refinanced mortgage loan, different programs have different requirements. As an example, a VA guaranteed loan already has the guarantee and "no-verification" refinances have no additional risk. To expedite these requests, no checks are needed. So it really depends on the lender and the loan program, as to what is done. 