Clear To Close BUT loan officer wants latest paystub day of closing.. Normal?

[mikes1984]

So I got the clear to close today, everything forwarded to the closing attorney but my loan processor asked for me to still fax over latest paystub before I close on Monday. Is this normal? Im thinking its just more of a formality since the last paystub they have is 3 weeks old. Im somewhat concerned because I work on commission and due to seasonal factors my latest paystub is a low pay amount. Could this cause a problem or is is it just more of a formality so she can say she has a updated paystub for the records.

[stevieswife2011]

That's normal I think they request right before closing to make sure you are still employed at the same places

[mikes1984]

Thought so. Also, the closing attorney sent me a preleminary HUD form and says the lender still has to approve it, so the HUD form could change. What does the attorney mean? The lender just has to sign off on the HUD form?

[StartingOver10]

It is part of the normal process. When the lender sends over the loan package to the attorney/title company there are detailed instructions in the package on the various loan costs. Once the HUD is prepared by the attorney's office, then the lender reviews it to make sure all the costs were input correctly.  Normally it is reviewed by the lender and the agents involved, if you had Realtors involved in your purchase. Once the HUD has been approved, then it is sent to you for your review so you know how much money to bring in and the disposition of each of the costs and credits.

As to having the last paystub, it is perfectly normal for you to provide your most recent paystub just before closing. It may be a requirement on your closing conditions and if the lender doesn't receive the paystub, they might not fund the loan. The last step, prior to funding the loan, is for the lender to check each document after it is signed to make sure that the entire loan package is correct and that they have every document they need. Once the lender has reviewed your signed package, then they authorize a funding number. I don't think you will be able to get away with "forgetting" to send the last paystub.

[tooleman694]

They didn't ask for mine after we clear to close.

[StartingOver10]

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@tooleman694 wrote:

They didn't ask for mine after we clear to close.

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tooleman, you had such a different loan.

Most of the lenders require the documentation to all be current info within 30 days. I don't know how your lender did it with info that was older than that unless your lender was a portfolio type lender. Who did you go to again?

[namvet]

Starting over 10 is correct but some lenders do ask for the latest paystub right before closing.  Probably because they failed to ask for it a few weeks earlier or the underwriter was just doing the CYA thing. 

[tooleman694]

FHA loan, Wells Fargo bought the loan from our lender. I was told we had 45 days before closing.

[Mike_B03]

Seems weird to me that they would give clear to close and then still require additional stuff. I'm not saying it's not normal, I have no experience with it but I thought "Clear to close" means everything is set, no more verifications, no more checking anything...you're set. What's the point fo a clear to close if they are still checking things and you can still be denied if something doesn't check out?

[StartingOver10]

A last minute re-verification of employment is natural because there are people out there that applied for a mortgage and then just before closing, they quit their jobs or were otherwise terminated. The CTC doesn't mean anything if there is a change in financial circumstances.

Most of the time the borrowers are completly unaware that the last minute re-verifications even take place because you give permission for the verification at the front end when you sign the application and disclosures and the lender does this routinely as part of their back end process. I have seen this happen the day of closing even. Only one time did a buyer of mine have a severe enough change that the closing didn't happen. Remember, to get the CTC all the verifications have to come in and be approved by the u/w but it doesn't mean the borrower can have a significant change in financial circumstances (eg no job) and still close. That's why they check again. Most of the time the buyers know better than to change their financial circumstances during the loan process. Once you close, you are safe to get that new job.