You’re under contract on your new home! Yay! But don’t celebrate just yet. There are a few hurdles while you’re under contract and some of those have to do with your mortgage. Here are the 6 most common causes of mortgage delays.
Here are 6 reasons that may explain why your mortgage may be delayed (or some things you can watch out for to prevent delay!)…
01. Being too slow at submitting requested docs to the lender, or taking too long to return requested items to a loan officer: The loan officer has a timeline of their own they need to follow. Not getting docs back in time will slow them down.
02. Delay in signing initial loan disclosures: By not signing forms upfront, everything gets delayed: Your loan disclosures have to be signed in the beginning and end of the loan process. If you have any questions, ask them asap to avoid delays.
03. Not ordering appraisal quickly: Once ordered, appraisals take a week or so to come back: Your lender will ask your agent for the green light to order the appraisal after inspection. If there is a tight turn around, the lender may go ahead and order that appraisal asap instead of waiting to hear you are moving past inspection.
04. Using your credit card on large purchases: Always ask your lender before buying a new car, washers, dryers, furniture, etc. Using your credit cards for large items like this may change your debt to income and could hurt your chances of being approved for the loan.
If there is a tight turn around, a mortgage delay could hurt the deal.
05. Cash deposits: Cash is hard to source. Lenders need a paper trail to explain where those cash deposits come from. Always ask your lender before depositing large amounts of cash into your checking or savings account.
06. Expired ID: Make sure your license is not expired at closing. The attorney will need a valid government ID. If for some reason your license is expired and you can not obtain a new one by closing, most attorneys will allow a passport as well. Call your closing attorney to double check.
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