Mortgage issues are usually avoidable

With all the paperwork, red tape, rules, and regulations involved in the home buying process these days, sometimes mortgage delays are unavoidable. Sometimes a mortgage delay is beyond our control. But more often than not, a delay in the mortgage process is not only within the home buyers control, it may be caused by the home buyers themselves. Even the best loan officer in Sioux Falls can’t do anything if the borrower takes weeks to send in the required documents with their loan application!

So I set out to find what are the main issues and how we can have a smoother transaction from contract to closing. I sat down with Rick Van Den Top, with Tailored Mortgage Group, to find out what causes most mortgage delays. Rick is one of the better mortgage officer in the industry but he doesn’t work miracles. If you don’t give them the documents and info that they need to do their job, their hands are tied. Learn these 10 most common causes of mortgage delays so you can do your part to help your lender get your home loan processed quickly.

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1. Access to Financials

   The best way to have a smooth start to the transaction is getting the required paperwork in as soon as possible. Not getting the necessary documents to the lender in a timely fashion puts the whole process potentially behind from the start. Rick told me that his main goal is to make the application period as painless and as easy as possible. Fairway Mortgage has an application on iOS and Android where you can not only apply for a loan but also send documents via picture, (similar to taking a picture of a check on your mobile banking app) ask questions directly to Rick and even track the status of the loan as it’s getting processed. Sound simple enough?

2. Keeping assets where they’re at

   Make sure to keep everything the way it is until you close! Any movements of funds has the potential for it to be re-verified which can cause the whole loan to be delayed.

3. Be careful of cash deposits

   A lot of lenders will require cash deposits, outside of your employers payroll, to be verified to find out where it’s coming from. If it requires documentation that’s just more hassle for you and potentially more time for your loan to process.

4. In-house processing

   Be sure to ask if your lender has the loan processed and underwriting is done in their office. If there are any grey areas it is better looked at and solved by a human being than a computer program!

5. Keep credit accounts the same

   Don’t apply for any new credit once you’re pre-approved. Even small inquiries for furniture or a different cell phone provider could make the credit report change and that could cost time and money!

6. Source of down payments

   Letting him know where the down payment is coming from is helpful to save time on the application. If it’s a gift from a family that’s usually fine they just have to know where the source is and getting it verified as soon as possible is always best!