What can a Homebuyer do to prevent closing delays? Underwriting guidelines, mortgage rules
and regulations have gotten a lot stricter since 2008.  All of these factors have made the loan
process a lot harder and longer than it used to be.   While there are a plethora of things that are
outside of the buyer’s control such as appraisal, underwriting time, title problems, repair issues,
surveys etc., the buyer can certainly help speed things along by doing his or her part: 

1.      Make sure to decide on a lender before the contract is finalized.  Switching lender
in the middle of a transaction is almost a guarantee that closing will be delayed.

2.     Have all of your documentation at the initial application(Copies of Driver’s license,
Social Security card, last 30 days paystubs, last two years W-2s, last two years tax
returns with all schedules, all pages of last 60 days bank statements, all pages of most
recent statements for investments, 401k, IRAs, and current landlord & employer’s
contact information).

3.     Don’t switch jobs in the middle of a transaction.

4.     Don’t make any large purchases or max your credit cards.

5.     Shop early for your homeowner’s insurance.  You should start the minute you are
under contract.  Waiting to do this at the last minute will definitely cause delay.

6.     Be truthful and do not withhold information from your Loan Officer.  This will
not only guarantee delay, but can also lead to your loan being denied. It is always best
when your LO knows exactly what they are dealing with upfront.

7.    Be accessible at all times.  Check your messages and emails and keep copies of all documentation you have provided or will need in PDF format for easy retrieval. 

8.   Do not move, transfer or spend assets.

9.     Do not argue with your Loan Officer about required documentation.   This will only
      cause further delays.   While the process can be very frustrating and intrusive,
      if your LO ask for something, get it to him in a timely manner.

Finally, be realistic.  The average contract now takes about 45 days to close unless it’s a
cash transaction.  Don’t schedule closing and moving on the same day.  Paying a few extra
days of rent will more than outweigh the inconvenience and trauma of having to move by
a specified date, but with no home to move to.