Making any significant purchase on a credit card or installment plan prior to closing ... I've had them buy housefuls of furniture, $8000 in appliances, even a new car (not just any car, but a $55,000 Cadillac ... buyer lost $6000 earnest money). This item tops my list of do's and don'ts which I present to my clients ... it's in bold font, all caps and underlined ... but it still needs re-emphasizing, sometimes daily.
Changing jobs/employment status ... had this occur three days before we were scheduled to close. Another client was laid off and failed to notify anyone, and another was a contract employee whose agreement was about to expire (he never disclosed this ... it only surfaced when the employment verification was received). This is item #2 on my list, and is similarly emphasized.
With all the paperwork shuffling back and forth, what is obvious to those in the profession can be overlooked by clients, especially inexperienced buyers. The process can be cumbersome enough ... anything we can prevent will only help.
Buyer/borrowers need to be forthcoming and respond to information requests as quickly and accurately as possible. Realtors must work with mortgage bankers on the following order - get a reliable loan pre-approval before showing property, submit offer contract terms such as seller credit, closing date, etc., after previous coordination w loan officer and buyer, and inform lender on whether transaction is moving forward after option period / inspections are done.
Loan officer and processors take file from this point, and submit a complete file to underwriter for conditional loan approval; then everyone works to meet lender loan approval conditions, in order to get file's final approval or "clear to close", and scheduling closing at title company.
In short, a clear understanding of the process by all team members and of each one's role from the start, is the best solution to avoid delays and or loan denials.
Please let us know if you would like to meet and or get additional information.
Amcap Mortgage Bank
Many things can delay the approval of a loan. Items related to the home like repair issues that the lender required or a clear title are typically on the sellers side. HOA issues such as getting financial information to the lender (typically with a condo) can hold up the loan approval process.
However, most items are related to the buyer. Paperwork is a big factor and buyers might delay in getting request forms back to the lender. If they email bank statements and page 6 of 6 is missing because it was blank, the buyer still needs to send it. It may be a missing social security card or not having their VA certification ready if they are applying for that type of loan. Some times the buyer doesn't disclosure issues like child support or they purchase a car while the home is pending for loan approval and can suddenly make them less capable of paying off that loan.
Needless to say too much to list here. A patient loan officer along with a good Realtor that will be watching both can keep the buyer on track to get everything done for an on-time closing. Expect the unexpected is what I tell my buyers. Good news, most "issues" can be resolved and the loan typically gets approved. Allow plenty of time (45 days minimum) to allow for unexpected delays.
Bernstein Realty, Inc.
Last, but not least, the lender themselves not taking care of all paperwork promptly and keeping in contact with Buyer, Buyers Agent, and the Title company.
The Seller's agent should make sure to have the Lenders information to check up to see what is actually going on. Dont just assume all is well if you dont hear anything......that is the kiss of death....
The only other thing that can stop a deal in its tracks is the appraisal coming in low, but good agents can normally work things out so that both parties can negotiate with it.
I have been using two local lenders are have been very pleased with their closing rate.
So what can be done about it is to have contact with the loan officer on the loan's status on a regular basis.
Anna Maria Durr, NMLS 266699, TREC 596662
2626 Richmond Ave., Houston, Texas 77098