Delays in Mortgage Loan Closing

Delays in mortgage process

Delays in Mortgage Loan Closings

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.

Florida Mortgage Lenders: What They Need to Speed Things Up

Every bit of information on your mortgage application will be verified.  If you state that you have $50,000 in assets, your assets will be verified one way or another.  If it cannot be verified, it will cause delays in mortgage loan closings.  If Florida mortgage lenders ask you for your bank statements, make sure you provide all pages of each month’s bank statements.  If you only provide the first page and neglect to provide the remainder, the mortgage loan underwriter will halt your mortgage application until the rest of the pages of your bank statements will be submitted.  This will cause delays in mortgage loan closings.

Florida Mortgage Lenders: What You SHOULDN’T Do To Speed Things Up

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 you are applying for new credit and a hard hit on your credit report will cause your credit scores to drop.  Too many credit inquiries will cause suspicion from the mortgage lender and will cause a drop in your credit scores.  The mortgage loan underwriter will most likely ask for an explanation from the mortgage loan borrower to explain why the borrower has applied for credit and would want a written explanation   This too can cause delays in mortgage loan closings.

Recent Late Payments will cause delays in mortgage loan closings

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

What are some other reasons for delays in mortgage loan closings?

Other delays in mortgage loan closings include if your home appraisal comes in lower than anticipated.  When you get a lower appraisal value, you might have to contest the appraisal or order a new appraisal.  This will definitely cause delays in mortgage closings.  Contesting an appraisal will probably cause the longest delay.  Contesting an appraisal can delay a mortgage loan closing for more than two weeks.

Having large deposits or large withdrawals from your bank accounts will definitely cause delays in mortgage loan closings.  Any out of the ordinary deposits or withdrawals greater than $200.00 needs a written explanation.  This is not the mortgage lender’s rules but it is Fannie Mae’s guidelines.

From the time you apply for your Florida mortgage loan and the time you close on your loan, a mortgage loan borrower needs to live like a financial saint.  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 go nuts and open 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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