Mortgage closing delays can be avoided
Mortgage closing delays are sometimes unavoidable but there are things you can do to avoid mortgage closing delays. When you apply for a mortgage, the first thing you need to do is complete a mortgage application which is also called the 1003. It is a 4 page application and it will ask you income, asset, debt, and liability information. One of the most simplest things in avoiding mortgage closing delays is to complete the mortgage application as accurate and as detailed as possible. Every line item on the mortgage application will be verified by the mortgage underwriter and if there are any discrepancies, the mortgage underwriter will ask you for a detailed letter of explanation. Letters of explanations at the last minute is one of the major causes of mortgage closing delays.
Give every information requested the first time around
There are over a dozen line items that your mortgage loan originator will ask you to supply. The following items will be requested from you. When you give the documents, make sure you give them the complete documents and all pages. Even if the pages are blank, include the blank pages. If they ask you for bankruptcy papers, include all pages of the bankruptcy including blank pages. Here are the documents that will be required.
1. Two months bank statements. Both checking and savings bank statements. If you do not have current bank statements, get a transaction state from a bank teller and get it dated, signed, and/or stamped. Computer printouts are not acceptable. If you submit transaction statements that has not been signed, dated, and/or stamped, it will get kicked back and will cause mortgage closing delays.
2. Two years tax returns and W-2s for salaried or hourly workers. If you are self employed, we need two years tax returns, year to date profit and loss statements, and current balance sheet for self employed mortgage loan borrowers. Page 2 of the tax returns must be signed by customer and tax preparer if prepared by an accountant. All pages of tax returns are required even blank pages. Failure to submit blank pages will cause mortgage closing delays.
3. We will need the Mortgage, Note, and/or Riders for existing mortgage on property owned by the mortgage loan borrower. All pages are required even blank pages.
4. The two most recent pay check stubs covering 30 days.
5. Copy of homeowners insurance, especially the declaration page and name, address, phone, email address of insurance agent.
6. Divorce decree if divorced and alimony agreement and child support documents if applicable. Make sure you include all blank pages.
7. 401k, profit sharing statements, and/or pension fund statements. Again, make sure to include all blank statements.
8. Stock, bond, and securities statements.
9. Driver’s license and social security copies to satisfy Patriot Act requirement.
10. Copies of real estate purchase contract along with all addendums and riders. If it is a condominium, include the contact of the association.
11. Copy of social security and pension award letter if applicable.
12. If you are a renter, we need rental verification via providing proof of 12 months worth of cancelled checks or if it is auto drafted from bank account, we need 12 months of bank statement.
Avoiding mortgage closing delays
By supplying the requested documents as complete as possible the first time around, you will avoid mortgage closing delays.