Tips for Avoiding Common Delays in the Mortgage Process

Applying for a mortgage can be a smooth, straightforward process. But sometimes homebuyers run into snags along the way. A lot of these can be prevented through your diligence, thankfully. Below are some recommendations that will help you to steer clear of some common snags and delays in the mortgage process.

1. Not getting pre-approval. One thing that can slow down the entire home purchase process is not getting mortgage pre-approval. Getting pre-approved speeds things up in a couple of ways: 1-It tells you the upper limit of what you can likely borrow, which lets you narrow down your home search to properties you can afford. 2-It gives you a pre-approval letter which can help you negotiate successfully with sellers. So, don’t skip this step. Florida State Mortgage Group can get you pre-approved right away. The process is free, and you can start it right here on our website.
2. Missing or incomplete documentation. Many delays during the underwriting process are the result of homebuyers submitting incomplete documents, or missing documents altogether. Be as thorough as you can when you are submitting your documents. Think about any informational gaps they might present, and then do what you can to fill in the blanks. If you leave gaps, it may trigger a request for more documents later on in the loan process. For example, imagine you are self-employed. You can provide bank statements to verify your income instead of a W-2. But if your income fluctuates throughout the year, you may need to provide further documentation to explain those fluctuations. This could be as simple as showing that your business is seasonal, and has ebbs and flows based on the time of the year. Or, you might just need to provide more bank statements for previous years to show that even with ups and downs, you have a long-term pattern of sustainability. You should include a written letter that explains the scenario clearly.
3. Credit score issues. Problems involving your credit score could cause a snag in the mortgage process. Sometimes homebuyers make the mistake of opening new lines of credits or putting large purchases on their credit cards in the middle of the mortgage process. Their scores drop as a result, which can then hold up approval, or change the rates they qualify for. Try to hold off on big purchases or new credit cards for the time being. Wait until after you’ve closed. Errors on your credit reports can also cause issues during the mortgage process. In fact, new errors could even appear during the process, causing unexpected score drops. If you suspect this has happened, you should get copies of your credit reports. Check to see if anything looks off. You can contest any errors you find to try and get them removed. Once they come off of your reports, your credit score should adjust back upward to where it belongs. To make sure that there are no unnecessary delays, keep a close watch on your email and phone. The mortgage company will reach out to you if they need any sort of documents or action from you. The quicker you respond, the sooner the process can move forward again.
4. Last-minute financial changes. You should try to avoid making any last-minute changes to your financial life. In some scenarios, you might be tempted to make a large deposit into your bank account. But if you do, you’ll have to explain where the funds came from, which can slow down the process. Try not to switch jobs at this time. Of course, that might sometimes be something you cannot avoid. Maybe a really amazing offer comes along as you are in the middle of the process, or perhaps you had to find a new job in a hurry after your old one laid you off. Once again, you will need to be ready to explain.

What the underwriter is looking for is evidence of consistency and stability. You can explain in a letter how a recent change fits into your stable career scenario. For example, maybe you changed jobs, but you are moving along a clear upward trajectory within your industry.

Buy a Home or Refinance in Florida

Now you know some common pitfalls that can slow down the mortgage process, and you have some tips for how you can get ahead of them or handle them if they come up.

Florida State Mortgage Group is based in Fort Lauderdale. We can walk you through the loan process step-by-step, making it quick and easy to apply for a mortgage anywhere in the state. To get started, please give us a call at (954) 359-3000 to schedule your Florida mortgage consultation. Let’s get you into your dream home.