Most Common Causes of Mortgage Delays

Did you know that there’s factors in your mortgage process than can cause delays in the processing of your loan? One little misstep, wrong decision or delay in providing paperwork can bring your loan to a screeching halt. No one wants that call the week or even day before closing saying, “We have a problem.” Time is money, and time is of the essence in real estate. *yes it’s cliche but there’s no place where more cliches are true than real estate!

So make sure you check out these points below:

1) Choose a mortgage company that is local and has in-house processing and underwriting.

If the loan processor is in your mortgage broker’s office and there’s an issue, he or she can stroll over and discuss the issue. Or know where to reach them immediately. They also have trust and relationship from working together. It’s typically better and it’s quicker. Also, we do things completely differently here in Illinois in real estate than most other states do. Make sure they’re familiar.

2) If you get a document from your lender to e-sign, do it immediately.

If the document is sitting in your inbox, time is ticking. Your file is stalling. New Truth in Lending regulations require that you view, sign and approve your Closing Disclosure (CD) three business days prior to Closing (Saturday is a business day for these purposes). You know what? If you don’t, your Closing will not be allowed to move forward until the time has passed.

3) Have your lender order your appraisal right away.

As soon as you have done your home inspection and completed attorney review, have it ordered and pay for it. Last minute appraisals will hold up your process. What if it needs a review? What if the property doesn’t appraise? What if there’s a correction that needs to be made? You’ll have to wait.

4) Do NOT buy stuff with credit or make any cash deposits into your account during the loan process.

Refer to my prior blog on this. Do. Not. Do. It. Unless you check first with your lender.