3 Mortgage Closing Delays Caused By A Third-Party
Posted on: 7 February 2022
Lending the money to purchase a home represents a significant financial risk for most financial institutions. A lot of verification and research must be conducted before a mortgage can be authorized to help mitigate this risk.
The verification and research process can take time, which delays the processing of a mortgage application. Fast-closing home loans allow you to bypass third-party delays that can prevent you from closing on your home in a timely manner.
1. Slow Escrow Agent
Before a mortgage application can begin being processed, a financial institution must receive specific information from an escrow agent. This information includes things like prelims and a breakdown of the exact fees associated with the home being purchased.
If an escrow agent is slow to return this information to a lender, your mortgage could be waylaid.
Be sure that you work with a real estate agent whose preferred broker is on-board with a fast closing to ensure your lender receives all escrow documents in a matter of hours after you strike a deal.
2. Appraisal Backlog
Appraisals are a vital part of the home buying process. Lenders need access to an appraisal to determine if the property qualifies for funding. Only a licensed professional is able to complete an appraisal.
If you are buying property in an area with a shortage of appraisers, your lender may not be able to start processing your mortgage loan right away.
Locate an appraiser who is able and willing to meet your timeline to avoid any delays caused by a backlog in appraisals. This will help you secure a fast closing for your new home.
3. Borrower Forgetfulness
Some mortgage loans aren't closed quickly because the borrower forgets to submit important documents. You must be prepared to remain in constant contact with your lender when you apply for a mortgage.
Be ready to sign loan documents at a moment's notice, and always return phone calls or text messages from your lender right away.
You may not be able to control some of the delays that affect mortgage processing times, but you can increase your chances of a fast closing by remembering to handle every task your loan officer gives you.
A fast closing can help you get into your new home as quickly as possible. Be aware of the things that can cause delays when processing your mortgage application so that you can help your financial institution avoid any third-party delays.
For more information on fast closing, contact a company like Raw Land Lenders.
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