Mortgage delays happen. Sometimes its unavoidable with all the paperwork, rules and regulations. However; there are some common mortgage delays that can be prevented by making sure you, as the home buyer, has everything in order.
The best way to start your transaction is by making sure you have a preferred lender. Partner with your real estate agent to use one of their preferred lenders that they have worked with. Once you have your lender, make sure that you are doing everything they ask and on a timely basis. All financial decisions should be discussed with your lender during your contract period to ensure you’re not causing delays.
Why is a mortgage delay an issue?
The main reason a delay can be hurtful to your home buying process is because it can cause a delay in your contract closing. This may be something that the seller cannot or will not be able to grant. This is one reason why it’s important to have a great real estate agent representing you. They will be able to handle things on your behalf to get to the conclusion quicker.
With buying and selling homes, sometimes they are contingent on other homes being purchased or sold. Causing a delay in one transaction can adversely affect multiple transactions if this were the case.
Top Customer Caused Mortgage Delays
Slow to submit documents that were requested by your lender. Your lender will be requiring past financials from you in order to process the loan. Such things as pay stubs, tax returns and a copy of your driver’s license will be needed. The longer you take in getting these items to the lender, the longer it takes for your lender to submit the file for the next step. Work on getting your documents together and submitted within 48 hours to avoid delays.
Expired Drivers Licenses and ID’s. Your IDs cannot be expired and cannot expire during your contract period. Make sure that you plan ahead and check the expiration dates on your ID. If you were to walk in with an expired ID, you will not be walking out with keys. Plus, we know how long the DMV can be to get things processed for a new license.
Not accepting eConsent authorization upfront. Due to the heavy regulations in the mortgage industry, your lender will need you to e-sign an initial authorization allowing permission for them to look into your credit. The mortgage industry is the most heavily regulated industry and making sure they are doing things correctly is of the utmost importance. By completing this step, they are able to take the next steps forward in determining if you’re qualified for a mortgage.
Signing initial loan disclosures late. Your lender will be sending you initial loan disclosures. The loan cannot move forward until these are signed by you. If you wait, your loan waits.
Out of State or Out of House processing and underwriting. Some lenders do not have an underwriter available in their office. Some lenders don’t even have the underwriter in the same state. Choosing a lender with an underwriter in-house will be helpful in the communication and efficiency when processing a mortgage.
Delay in home inspection being ordered. Schedule your home inspection immediate after you go in contract. In most cases, you’re required to have it done by 10 days after you go in contract. The quicker you get this done, the quicker you will know if you truly want the home. Also, the quicker you’ll know if you’re ready to order appraisal with your lender.
Delay in ordering the appraisal. Appraisals can take anywhere from 1-3 weeks to be returned. Schedules are busy and some areas don’t have as many appraisers available. The quicker you get your appraiser ordered, the more time you’ll have for your appraisal to returned prior to closing.
Large deposits in accounts that are not pay roll. With everything needing to be sourced for your lender, you’ll need to make sure you have all details of deposits in your accounts. You’ll need to provide a copy of the checks deposited into the account and any delay in this will cause a delay in your mortgage.
Cash Deposits in bank accounts. Lenders need to be able to document where funds come from. When you’re depositing cash in your bank account, it’s hard to source. When you’re dealing with this, make sure that you’re communicating with your lender to help avoid any delays in your mortgage.
Making credit card purchases once you’re in contract. Putting purchases on your credit card causes you to have more debt. Having more debt can adversely affect your credit. It can cause your debt-to-income ratio to change, or negative impact your credit score, which could actually disqualify you from getting your mortgage. When you’re needing to make a purchase during the contract phase, make sure you are discussing this decisions with your lender to provide you guidance as to not change your credit. Your lender if your financial superstar! Make sure you’re utilizing them.
As we wrap things up, make sure that you’ve researched your lender and know you’ll be getting the best advise and service. Partnered with your real estate agent, you’ll be an unstoppable team in getting the home of your dreams.
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Who is Seiler Home Group?
Hi! We are Robert & Melanie Seiler! We are a husband and wife real estate team located in the PNW. We specialize in home buying, home selling and real estate investing! We have a passion for real estate and helping our clients obtain their dreams. We have extensive knowledge of the real estate processes for all types of transactions. We are connected around the states with the top realtors and can provide the best service possible with our large network and marketing.
The fun stuff: We LOVE coffee, random date night adventures, getting a cold one, or maybe even some wine and lots of pizza! The beach is a favorite getaway and we lived in Alaska for 7 years but our home is Washington. Our favorite little ones, are our fur babies, Tucker and Triton!