Description
The Pre-Closing feature, also known as "Final Verifications," is a critical step in the mortgage lending process that generates a specialized report to verify a borrower's continued employment status. This streamlined verification process focuses exclusively on employment confirmation without retrieving new financial account information, balances, or transaction details.
Purpose and Importance
While no government regulations mandate the pre-closing verification process, it has become a standard practice among virtually all lenders. This final employment check is typically done within 10 days of closing and serves as a crucial risk mitigation tool in the lending process.
Final verification protects both lenders and borrowers by:
- Confirming the borrower maintains the income source used to qualify for the loan
- Reducing the risk of loan default due to undisclosed employment changes
- Ensuring compliance with internal lending policies and investor requirements
- Providing peace of mind that the loan remains viable at closing
How the Pre-Closing Feature Works
The pre-closing verification process is designed for simplicity and efficiency. Here's the step-by-step workflow:
Step 1: Initiation
Users access the final verification from the Services Tab > View Report > Order Final Verification
Step 2: Third-Party Processing
Upon clicking the button, the system automatically sends a request to the designated third-party verification service. This request specifically asks for a pre-closing report based on the existing Verification of Income and Employment (VOIE) report already on file.
Step 3: Report Generation and Delivery
The third-party service quickly processes the request and generates a PDF report confirming the borrower's current employment status. The system automatically refreshes the view once the report is ready, allowing users to immediately access and review the documentation from the Services and Documents Tabs. The generated PDF is sent to the LOS.
Services Tab
Documents Tab
Vendor Support and Compatibility
The Pre-Closing feature is supported by multiple industry-leading verification vendors, each with specific capabilities:
Finicity
- Supports pre-closing employment reports based on VOIE reports.
- Unique capability: Can generate pre-closing reports from Verification of Assets (VOA) reports, provided at least one checking, savings, or money market account was connected.
- This flexibility makes Finicity ideal for situations where employment verification wasn't initially ordered but asset verification was completed.
AccountChek
- Generates pre-closing employment reports from both VOIE and VOA reports.
- Offers broad compatibility similar to Finicity.
- Provides reliable employment verification across various report types.
Truv
- Supports pre-closing employment reports exclusively from VOIE reports.
- Specializes in employment-focused verifications.
- Delivers streamlined employment confirmation services.
Truework (not yet live)
- Generates pre-closing employment reports based on VOIE reports.
- Focuses on employment verification services.
- Provides reliable employment status confirmation.
Published: 07/01/2025 Last Update: 07/01/2025