Tips In Preventing Home Closing Delays
This Blog On Preventing Home Closing Delays Was Written By Gustan Cho
Preventing Home Closing Delays
Buying a home is a very exciting time for an individual and also a very stressful time. There are a lot of moving parts for a buyer and a lot of people involved that each have their own roles. A buyer will usually start with their realtor, who is dealing with the seller’s realtor, the mortgage loan originator who deals with the mortgage processor and mortgage underwriter, the title company and an appraiser. Whew, there are many people who have their respective part of this process! In addition to that, the buyer and seller are most worried about making sure that there are no surprises come up with an inspection or appraisal, and making sure that they meet the closing deadline listed in the purchase agreement.
Delays In Home Closings
Many lenders will tell you that you will meet this deadline and not to worry, however, some fail to deliver on this promise because their files may be delayed due to lack of staffing or an extremely high volume. Other delays can arise if the appraisers in the area are extremely busy and orders cannot be completed within a week or two. Each one of those things, when they occur, can cause additional stress for all parties involved, some of these can be avoided. It is important to note, the lender cannot control the timing of the appraiser, but the mortgage company should have control over internal delays. Many lenders can get a deal done and closed within a 30-45-day period if all goes well and there are no delays or issues with the appraisal.
What can your loan officer do to help avoid in preventing home closing delays?
Documents Required To Process Mortgage Loan
When you decide who your lender will be and make contact with a loan officer, you should be prepared to provide certain documentation. After your loan officer takes your application, there are certain items that should be requested and submitted when your file goes to an underwriter. These items may change based on what is on a particular credit report, each scenario is unique. However, there are some items that are just a given on all files. Make sure that you get your loan officer or mortgage processor all the documents required and make sure that the documents you provide are complete with no missing pages. Getting your mortgage loan officer or processor complete neat files is key in preventing home closing delays.
Required Mortgage Documents you should be prepared to provide:
- 30 days of your most recent pay stubs.
- 60 days of bank statements for all bank accounts showing funds for down payment and closing costs.
- 2 most recent years of tax returns with all supporting schedules.
- Copy of your Driver’s License and Social Security Card
- If you have previously filed bankruptcy, you should have all of your paperwork ready to submit, including your discharge papers.
- If there are recent collection accounts, you should have a letter of explanation for each account prepared.
- If you rent, you should have record of your rent payments.
- If you are already in a purchase agreement, a copy of the fully executed purchase agreement along with the Lead Based Paint Disclosure. Your loan officer is working to submit a file as complete as possible to minimize the number of conditions that need to be cleared once your file comes back from the underwriter. Having all the documentation ready in the beginning of this process will save a lot of time for you and help to avoid any delays.
What Do You Do If There Are Delays And You Will Miss Your Closing Deadline?
As explained earlier, there are certain situations where delays may not be avoidable, such as the appraiser backlog scenario. Typically, a realtor in that area will know if there are significant delays with appraisers at the present time and will plan for that when putting in a closing date on the purchase agreement. If you file has experienced a delay, it is important to remain calm. Your loan officer understands the stress the buyer experiences when a delay occurs and will work hard to move along anything within their power to get this taken care of. If the delay is caused by internal situations at the mortgage company, know that your loan officer is likely doing anything within their power to resolve the situation. They may have already contacted senior management in all departments prior to even notifying you of the delay.
What Happens If You Miss Your Closing Deadline?
If you closing deadline is going to be missed, you will need to have an addendum done to the purchase agreement showing an extended closing deadline that is signed by you and the sellers. Most sellers and realtors understand that this can happen from time to time and know exactly what to do. Trust that all of the parties involved are well educated in their respective roles of your transaction and all doing their part to ensure a timely closing.
Meeting Closing Date And Preventing Home Closing Delays
It is always an exciting and stressful time when a you purchase a new home. To ensure everything moves through the process smoothly in timely, it helps for the buyer to be prepared. If you promptly respond to questions or requests for documentation by your loan officer, this helps clear any conditions placed by the underwriter quickly so the file can be submitted for a clear to close. The more prepared you are and the more information you can provide in the beginning, the more likely you are to have a better turnaround time from application to closing.
About The Author Of Preventing Home Closing Delays
Gustan Cho is a licensed mortgage loan originator and the author of this blog, Preventing Home Closing Delays. Gustan Cho is an expert in originating FHA, VA, USDA, Conventional Loans, as well as non-QM mortgage loan products. Gustan Cho knows his lending guidelines and represents a national mortgage lender that has a national reputation of having little to no lender overlays. A large percentage of Gustan Cho’s borrowers are clients who could not qualify at other lenders due to their lender overlays or due to last minute mortgage loan denials. The number one reason for last minute loan denials is due to the loan officer not properly qualifying the borrower either due to issuing a hasty pre-approval letter or the loan officer not being familiar with income analysis and/or lending guidelines or their own lender overlays. Gustan Cho has over 20 years of experience as a real estate investor and has been originating mortgage loans since 2012.
Gustan Cho is one of the nation’s top mortgage loan originators. Gustan Cho is based in Schaumburg, Illinois and is Editor in Chief for Gustan Cho Associates and is a team leader at The Gustan Cho Team @ Gustan Cho Associates. Gustan Cho is available 7 days a week to take calls to answer any questions you may have on any loan program, its guidelines, and any case scenarios you may have. You can call Gustan Cho of The Gustan Cho Team @ Gustan Cho Assocates at 262-716-8151 or email at firstname.lastname@example.org .