How To Avoid Delays In Home Loan Closings And CTC

This BLOG On How To Avoid Delays In Home Loan Closings And CTC Was UPDATED On July 1, 2017

Most mortgage loans can close in 30 days or less.

  • However, some mortgage loan closings can get delayed for several reasons. 
  • Whether you are a purchase mortgage loan borrower or a refinance mortgage loan borrower, nobody likes delays in mortgage loan closings.
  • The key to avoid delays in mortgage loan closings is to complete your mortgage application as accurately as possible and provide your Florida mortgage lenders all of the documents they request.

Mortgage Documents Required

Every bit of information on your mortgage application will be verified.

  • If mortgage applicants state that they have $50,000 in assets, assets needs to be verified by providing bank statements, investment accounts, 401k, or other documents. 
  • Assets that cannot be verified cannot be used and cause delays in home loan closings. 
  • Need to provide all pages of bank statements and asset documents including blank pages.

What Borrowers SHOULDN’T Do During Mortgage Process

Please do not apply for new credit during your mortgage loan application process.

  • Credit inquiries will cause delays in mortgage loan closings because underwriters will request a letter of explanation on why they are applying for new credit.
  • Credit Inquiries are normally hard hit on credit report and credit scores to drop with hard inquiries.  
  • Too many credit inquiries will alert creditors and lenders and is viewed as negatives. 
  • The mortgage loan underwriter will ask for an explanation from the mortgage loan borrower to explain why the borrower has applied for credit and would want a written explanation on the outcome.
  • This too can cause delays in home loan closings.

Recent Late Payments

Never be late on a monthly payment, whether it is a credit card payment or an installment loan payment.

  • Being late on a payment will definitely drop credit scores and will cause delays in home loan closings. 
  • Being late on a monthly payment can even disqualify pending mortgage loan altogether if there is no good reason of being late.

Reasons For Delays In Home Loan Closings

Other Delays In Home Loan Closings include if the home appraisal comes in lower than anticipated.

  • When the home appraises lower than the purchase price, the borrower loan officer can contest the appraisal. 
  • This will definitely cause Delays In Home Loan Closings. 
  • Contesting an appraisal will probably cause the longest delay. 
  • Contesting an appraisal can cause Delays In Home Loan Closings  for more than two weeks.
  • Having large deposits or large withdrawals on bank accounts will definitely cause Delays In Home Loan Closings. 
  • Any out of the ordinary deposits or withdrawals greater than $200.00 needs to be sourced and explained to underwriters. 
  • From the time applies for mortgage loan to the time the home loan closes, borrowers should be extremely careful on not being late on monthly payments, should not open new credit, and do not do any large purchases. 
  • They cannot purchase any high ticket item, need to monitor their bank accounts, and must religiously pay their monthly debt obligations on time. 
  • Many mortgage loan borrowers get excited with buying a new home that they get new furniture credit cards and charge up high ticket items like furniture, lawn equipment, and other furnishings for their new home. 
  • This causes their new mortgage loan to be in jeopardy.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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