This is a handy list of things for all borrows to observe during your loan process, after you have your offer accepted on a home. This list is courtesy of Tommy Nelms and the Nelms Team at Land Mortgage here in Austin.
Top Ten Causes of Closing Delays
1) Not providing information requested in a timely manner as requested by your Processor or Transaction Coordinator.
2) Waiting until the last minute to choose your homeowner’s insurance company.
3) Notifying us when we can proceed with ordering the appraisal to your property. This is usually done once your option period has expired or the inspection has been done.
4) Changing terms, conditions or sales price on the contract without notifying us immediately.
5) Having late payments after the initial pre-qualification credit report or putting off paying bills in an effort to accumulate a down payment. Recent late payments may cause a loan to be declined.
6) Unclear verification of funds to close, changing the source of down payment, and using a personal check, rather than a cashier’s check to transfer “gift” funds.
7) Being out of town on the day of the closing and/or significant amounts of time during the process.
8 ) Changing jobs or employers without inquiring about the impact this change would have on your loan approval. Employment is verbally verified prior to closing.
9) Making major purchases prior to closing as this may impact your qualification ratios. Please confer with your loan officer to have him calculate what your ratios would be with any additional debts before applying for additional credit (i.e. new car, furniture, appliances, electronics, etc.). Credit reports are often updated just before closing.
10) Not bringing requested items to closing, such as a cashier’s check, photo ID, closing conditions.