Preventing home closing delays

Preventing Home Closing Delays and How To Close on Time

Gustan Cho Associates are mortgage brokers licensed in 48 states

This blog will cover preventing home closing delays and how to close on time. The home buying and mortgage process does not need to be stressful. Preventing Home Closing Delays. Buying a home is a very exciting time for an individual and also a very stressful time. There are many moving parts for a buyer and many people involved; each has its own role.

A buyer usually starts with their realtor, who deals with the seller’s realtor, the loan originator, the mortgage processor and underwriter, the title company, and an appraiser. Whew, there are many people who have their respective parts of this process! In addition, the buyer and seller are most worried about making sure that there are no surprises coming up with an inspection or appraisal. Both buyers and sellers want to ensure buyers meet the closing deadline listed in the purchase agreement.

How To Prevent Delays In Home Closings

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Many lenders will tell borrowers they will meet this deadline and not to worry. However, some fail to deliver on this promise. Their files may be delayed due to inadequate 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.

When they occur, each one of those things 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 to get the loan officer or mortgage processor all the documents required. Make sure that the documents provided are complete with no missing pages. Getting the loan officer or processor to complete neat files prevents home closing delays.

Preventing Home Closing Delays By Provided Completed Documents Required

Required Mortgage Documents you should be prepared to provide:

  • 30 days of most recent pay stubs
  • 60 days of bank statements for all bank accounts showing funds for the down payment and closing costs
  • Two most recent years of tax returns with all supporting schedules
  • Copy of your Driver’s License and Social Security Card
  • With previously filed bankruptcy, I need all of the paperwork ready to submit, including discharge papers
  • If there are recent collection accounts, need a letter of explanation for each account prepared
  • Renters should have a record of rent payments via 12 months of canceled checks and bank statements
  • Buyers with the purchase agreement, a copy of the fully executed purchase agreement along with the Lead-Based Paint Disclosure
  • The loan officer is working to submit a file as completely as possible to minimize the number of conditions that need to be cleared once the underwriter returns the file.

Having all the documentation ready at the beginning of this process will save a lot of time and help to avoid any delays.

Preventing Home Closing Delays and What To Do With Delays and Missing Closing Deadlines?

Preventing Home Closing Delays And What To Do With Delays And Missing 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. They will plan for that when putting in a closing date on the purchase agreement. If there is a delay, it is important to remain calm.

How To Avoid Stress During The Mortgage Process

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The loan officer understands the stress the buyer experiences when a delay occurs. They 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 before even notifying borrowers of the delay.

Preventing Home Closing Delays and What Happens If Closing Deadline Is Not Met

If the closing deadline is going to be missed, buyers will need to have a supplement done to the purchase agreement. It needs to state an extended closing deadline that is signed by buyers and the sellers. Most sellers and realtors understand that this can happen from time to time. They know exactly what to do. Trust that all parties involved are well educated in their respective roles of the 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 buying a new home. Ensure everything moves through the process smoothly and in a timely, it helps the buyer to be prepared. If borrowers promptly respond to questions or requests for documentation by the loan officer, this helps clear any conditions placed by the underwriter quickly. Cooperation is key so the file can be submitted for a clear to close. The more prepared and the more information borrowers can provide in the beginning, the more likely they are to have a better turnaround time from application to closing.

About Gustan Cho Associates

Meeting Closing Date And Preventing Home Closing Delays

Michelle McCue is the regional managing director of Gustan Cho Associates Michelle McCue is also an associate contributing editor at Gustan Cho Associates and manages a team of licensed mortgage loan originators. Michelle McCue is the author of this blog, Preventing Home Closing Delays.

Michelle McCue is the author of this article. Besides being the regional managing director at Gustan Cho Associates, she is also an expert in originating FHA, VA, USDA, and Conventional loans and non-QM mortgage loan products. Michelle McCue knows their lending guidelines.

Are All Lenders Have The Same Mortgage Guidelines?

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Gustan Cho Associates is a national mortgage company with a national five-star reputation of having no lender overlays. Many of our borrowers are clients who could not qualify at other lenders due to their lender overlays or 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 lending guidelines or their own lender overlays. Combined, the team at Gustan Cho Associates has more than 50 years of experience in real estate and mortgage lending.

Starting The Mortgage Process With a Lender With No Overlays

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Gustan Cho Associates is one of the top mortgage brokers in the nation. Licensed in 48 states, including Washington DC, Puerto Rico, and the U.S. Virgin Islands, Gustan Cho Associates has a lending network with over 190 wholesale mortgage lenders. The regional officers of Gustan Cho Associates are headquartered in Oakbrook Terrace, Illinois. Gustan Cho  Associates, Inc. has a national reputation for being able to do mortgage loans other mortgage companies cannot do.

Gustan Cho Associates is a mortgage broker licensed in 48 states with a national reputation of being able to do mortgage loans other lenders cannot do. Over 75% of our borrowers are folks who could not qualify at other lenders due to overlays, stress, last-minute loan denial, or not having the mortgage products. At Gustan Cho Associates, we only market mortgage loans that exist and are possible at competitive rates. Besides government and conventional loans with no lender overlays, we offer hundreds of non-prime mortgage programs including non-QM and non-prime mortgages.

Best Mortgage Lenders For Bad Credit

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Gustan Cho Associates are mortgage brokers licensed in 48 states with a national reputation as a one-stop mortgage shop. Not only are we experts in originating and closing government and conventional loans with no lender overlays, but we are experts in all areas of non-QM and non-prime mortgage lending.

Gustan Cho and his team of veteran mortgage professionals are ready to answer any questions home buyers or homeowners with mortgage inquiries. Gustan Cho Associates Information Resource Center is a group of real estate and mortgage industry experts which includes the following: real estate agents, residential mortgage loan officers, industry experts whose mission is to provide information about real estate, conforming loans, non-conforming loans, specialty financing programs. The mortgage industry is so complex with new regulations that are constantly changing. New rules and regulations is being implemented, that our goal is to express the opinions of industry experts and offer their opinions. Company NMLS 1660690 Branch NMLS 2315275

The Team at Gustan Cho Associates is available seven days a week to take calls to answer any questions borrowers may have on any loan program, its guidelines, and any case scenarios they may have. Borrowers can contact us at Gustan Cho Associates at 800-900-8569 or text for a faster response. Or email us at

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