How To Avoid Delays in Mortgage Loan Closing
A mortgage loan should be able to close in 30 days of less. Whether it is a new home purchase mortgage loan or a refinance mortgage loan, a complete mortgage application package consists of a lot of materials. We have discussed the mortgage application process before and will just outline it on this article. The mortgage application process is very simple and the most difficult part is gathering the information requested by your mortgage lender. If you take the time and gather all the information requested by the mortgage lender, it makes the mortgage application processes much smoother and most likely will not cause a delay in closing your mortgage loan. We will be discussing things that can delay your mortgage loan closing in the following paragraphs.
First Step: Mortgage Application
The first thing you do when you apply for a mortgage loan is fill out the online mortgage application on the top left section of this website. If you are looking for a preapproval in California, Illinois or Florida, just click on the APPLY NOW icon on the top left section of this website. Complete the secured 1003 mortgage application. The information you state on this mortgage application is extremely important. You need to be as accurate as possible because all of the information you state will need to be verified. Things that can delay your mortgage loan closing is you stating one thing on this application and not being able to verify it.
Change in Credit Profile Can Cause Delay in Mortgage Loan Closing
Other things that can delay your mortgage loan closing is if there are changes in your credit profile. For example, if you went out and traded in your car for a new more expensive vehicle, this is one of the things that can delay your mortgage loan closing. The underwriter needs to recalculate your debt to income ratio and see if you still qualify for the mortgage loan. Many mortgage loan borrowers get disqualified for a mortgage loan when they finance a large ticket item such as a vehicle because it throws off the debt to income ratio.
Credit Inquiries Can Have Negative Impact
Other things that can delay your mortgage loan closing is if the mortgage loan borrowers applies for excessive credit. Credit inquiries are frowned upon mortgage lenders and will drop your credit scores. Credit inquiries are one of things that can delay your mortgage loan closing because the mortgage lender will want a written explanation of each credit inquiry. If your credit inquiry caused a drastic drop in your credit scores, you may be disqualified and not be able to go ahead in closing your mortgage loan. Please do not apply for new credit during the mortgage application process.
Change in Jobs during Mortgage Process Can Cause Delays in Mortgage Loan Closing
Change of jobs is other things that can delay your mortgage loan closing. If you had a job change, the mortgage lender will want to see your last 30 days of pay check stubs so a job change will cause a minimum 30 delay in your mortgage closing.