Top 10 Mortgage Delays when Purchasing a Home
Having a delay in your home purchase closing can be extremely frustrating. However, most mortgage delays are preventable and avoidable. By studying the top 10 causes of mortgage delays, you’ll be sure you will have the smoothest closing possible.
1) Using the Wrong Lender
Choosing a lender is a lot like choosing a car mechanic. Pick the wrong one and you’re in for some major headaches. You want a lender that really cares about your loan and values your business. Not someone who looks at you as Loan #556. Not only can the wrong lender seem cold and uncaring, but they can also really slow down the process.
2) Writing Too Short of A Contract
One of the last things you want is a contract on a home to expire. There are a lot of moving parts when a home is bought and sold. I recommend writing a 45-day contract to avoid having any unforeseen problems delay the closing.
3) Slow to Submit the Requested Documents
I know it’s no fun gathering all your tax documents, pay stubs, and bank statements, but the faster it gets in the faster it moves forward.
4) Paying a Bill Late
It goes without saying that you should pay your bills on time, but it is especially important in the loan process. If even one late payment shows up on your credit report it could disqualify you from your loan!
5) Delay in Signing the Initial Disclosures
The mortgage industry is one of the most heavily regulated in the U.S., and the process can’t move forward until these are signed.
6) Processing and Underwriting Not Done In-House or is Out-of-State
If your lender needs to wait for someone in another office, or even in another state, to complete certain things, delays almost always occur.
7) Delaying ordering the inspection
Schedule your home inspection immediately after you go Under Contract on the home. The quicker you get that done, the sooner you’ll know if you truly want that home, and the sooner you can order the appraisal.
8) Delays Ordering the Appraisal
Unfortunately, when the appraisal gets done is out of the lender’s and your control. However, ordering it as soon as possible will speed the process up.
9) Making Purchases on Credit
DO NOT go out and buy new furniture, washer and dryers, a new car, or put ANYTHING on credit without first talking to your lender about it. A new purchase on credit can throw your debt-to-income ratio out of whack, or negatively impact your credit score, which could actually disqualify you from getting a mortgage!
10) Making Large Deposits or Cash Deposits
Everything has to be sourced, so making deposits that require more documentation can slow things down.
Having a mortgage delay is no fun, and the main cause of this is typically because your working with the wrong lender. If you have questions about financing or are looking to purchase a home reach out to me by email or phone. (314) 472- DOUG (3684) or [email protected]
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