Getting a mortgage for your home doesn’t happen overnight. After approval, the loan goes through different steps throughout its duration before closing. To make sure a loan stays on schedule for closing, be wary of these common issues that could cause delays.
Slow to submit requested documents
No matter the lender, all are going to ask for multiple documents including: pay stubs, W-2 forms, bank statements, tax returns, identification and et cetera. The sooner the lender possesses these documents, the quicker the loan process can get started. If the documents don’t reach the lender by the time they are requested, a delay may arise.
The home inspection doesn’t go as planned
To ensure your home is in good condition, inspections need to be done. Any problems found will need to be resolved before closing. For example, faulty electrical wiring found during an inspection will require rewiring.
A lower than expected appraisal
A delay in the process could also occur if the home appraisal ends up valuing the home at a lower amount than expected. In this instance, negotiating a price with the seller or getting another appraisal is necessary, because now the home value is below the loan amount.
Changes in credit
Furnishing your beautiful new home may be one of the first things on your mind! However, refrain from making any major purchases while the loan is processing. Large purchases may cause changes to your credit score, and could put your loan at risk. Remember, the loan isn’t yours until you sign every last piece of paperwork!
No matter the situation, always pursue your dream home. Call vLoan today at 1-844-77-vLoan to schedule a free consultation or get the loan process started early with a free online rate quote.