I closed on a house today , but the investor will not release funds due to they want to do a employment check.

Happens all the time, I'm a licensed realtor and loan officer. I've been in the industry for 10+ years and this is what all lenders do in order to verify that your fufilling your end of the deal. They are lending to you based on the employment information on the loan application. In the even that you loose your job during the loan process they do not have to fund the loan/release the funds. If you still have your job it should be no problem just be patient....congrats!

if you closed, then the funds must be released. I don't understand how anyone can withhold anything once it's closed unless agreed to beforehand. Is that the case?

Is the investor the one who is financing your loan?

If they won't release funds, you didn't close.

They should have thought of that before closing...that is a BAD loan practice.

Tell them that you will NOT pay per diem interest on the days that the loan was not funded on...b/c they are CERTAINLY charging you for them.

I would also call the banking commission in your state and talk to your closing attorney.

PS: The only way they can legally do that, is if they provided the loan docs early (which they are supposed to do anyway), and then called to verify your employment and found out that you either quit your job, was fired, or that you otherwise were not employed....then they have the right to pull the loan from the table..., and that happens by refusing to fund. THAT is the only legal way they could do that.

It is common for lenders to verify employment before releasing funds. This is not unheard of. They do not have to release funds until all conditions of the loan have been cleared.