Why is Your Loan Taking So Long to Close?
Many consumers involved with a new mortgage or refinance today have the same question, Why is my mortgage taking so long to close? Like most mortgage related questions, the answer isn’t the same for everyone. While every mortgage situation is a little different, there are three factors that slowed the mortgage market in 2010 and 2011:
By now, most consumers understand that applying for a mortgage means having all the supporting financial paperwork to go with it. Unlike days gone by, you need to account for just about every nickel saved, spent, or earned, if you want to get a mortgage or refinance. This has not only made the process longer, it has also decreased the number of available candidates for home loans. The first thing we at Bills.com ask of those who wonder why their loan isn’t closing is to check their paperwork.
Lenders today also have to ask more questions about a prospective borrower than ever before. It’s all part of the process of getting to know each other, but some consumers don’t have the answers lenders are looking for. Even if there is no problem, being unable to answer a given question about your financial situation can be problematic when it comes to finalizing the deal. In the cases where there are unanswered questions by a consumer or a lender, the loan should not close until it is answered adequately.
There are many advantages to sticking with your own lender when it comes to a refinance, but one of the biggest drawbacks is an increased timeline to close. Unfortunately, lenders under pressure may give lowest priority to existing clients. It isn’t right, but when loans already take so long to close, lenders are forced to give preference to those whose loan they do not already own. This can leave some consumers waiting even longer than average for their loan to close.