5 Reasons for Mortgage Processing Delays

Oct 10, 2017 (0) comment

mortgage processing

You’ve found the perfect home.

You’re already envisioning you, your friends and family enjoying the big yard or taking in that city view.

But first, you have to secure your mortgage. And you don’t want to let this home get away.

Let’s explore five reasons mortgage processing gets delayed.

Why Is My Mortgage Processing Delayed?

1) You Didn’t Get Pre-approved

There’s not much you can do about that if you’ve already found your perfect home. So we’re not here to beat you up about it.

Getting pre-approved before you find the perfect home will help prevent many delays that occur during mortgage processing.

2) You’re Slow to Submit Your Paperwork

Add this one to the personal responsibility column. A great mortgage company will try to stay in touch and let you know what they need throughout the review process.

Sometimes they need updated pay stubs or an explanation about a strange deposit.

Respond to them quickly. Submit the documents they need to help avoid unnecessary delays.

3) Underwriting Isn’t Done In-House

Underwriters review documents to determine your credit-worthiness. Some companies send their underwriting out to a 3rd party.

This isn’t necessarily bad. But it means that your paperwork is going through multiple hands, which can cause delays.

If you need a speedy decision, you’d want to look for companies that do in-house underwriting.

4) The Home Inspection And Appraisal Take Time

The actual visit that these professionals make to the home is only a small fraction of their job.

It takes time for a home inspector or home appraiser to compile their reports for the mortgage company.

Because of this, scheduling them early to give them time to get their reports together will help you avoid mortgage processing delays.

5) You Just Made a Weird Deposit Or Purchase

Don’t do it. Underwriters are responsible for reviewing your financials to ensure that you can afford the home through your own income.

They also need to know if that you qualify for various programs you may have applied for.

If you make a strange, large deposit into your account, it may appear that someone else is supporting you. Or it can appear that you’re getting paid for something “under the table” that you haven’t reported to the company.

In the same way, a strange, large purchase could change your debt to income ratio. The company may start wondering if you’re really in control of your spending.

Are you a greater risk than they thought?

These might not only cause delays. They could cause rejections.

If you need to make a large deposit during the process, clearly communicate with the company beforehand. If you can avoid making the deposit until after everything’s said and done, do so.

Mortgage Processing Made Easy

Your mortgage company will walk you through the process to help avoid delays. But it’s important that you understand what you can do to prevent processing hiccups.

Are you ready to get pre-approved? Get your free quote now.

Bruno Simpson

Contributor at FHA Loan Search
Mr. Simpson is based in the San Francisco Bay Area and has nearly a decade of experience in credit score and reports analysis, loan origination and the home loan application process.

He is an experienced presenter on affordable housing topics including FHA, VA, and conventional home loan programs.
Bruno Simpson

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