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Joe Samson I have live in Calgary, AB since 1991. I love traveling and big game fishing. Licensed REALTOR & Associate Broker in Alberta | www.JoeSamson.com | www.GreatCalgaryRealEstate.com LIKES
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Things That Could Go Wrong With Mortgage Approvals
Whether you’re buying or selling a home, a mortgage approval is something you’ll likely have to deal with. If you’re the buyer specifically, this might seem as simple as submitting some paperwork with your signature. Unfortunately this is very rarely the case, as there are a number of things that can go wrong and hold up the approval. While there are some things you can do to avoid this, such as making sure you have all your paperwork filled out complete, other times the problems can be out of your control.
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Delete this However, by learning more about buying a home, you will be better prepared for handling Edit Reblog
process in the future. Even if you’re the seller it helps to understand more about these types of issues, as you’ll see that the buyer isn’t always the one at fault. Some situations that are commonly seen (and frustrating for everyone involved) are listed below. Whether you’re just about to start this process or are only beginning to look at real estate, it’ll be helpful to know what can go wrong with mortgage approvals.
The Mortgage Broker Isn’t Up to Par Almost everyone has heard nightmare stories of mortgage brokers who just don’t do their job quickly or efficiently. This is one of the reasons why it’s always recommend to do as much research as possible to find a really good mortgage broker. If you don’t, this could be something you end up regretting when your deal is hanging by a thread.
The Lender Doesn’t Trust the Mortgage Broker Mortgage brokers play an important role with the approval process, as they collect documents and submit them to the lender so that they have all the information they need to approve or deny the paperwork. Unfortunately not all brokers are trustworthy or honest, which is why they may have bad relationships with certain lenders. Ultimately this could lead to the lender paying extra close attention to any paperwork submitted by that mortgage broker, which further holds up the process.
The Lender Prioritizes Applications Reality today is that lenders may give preferential treatment to mortgage brokers who send a lot of business their way. Unfortunately if you’re working with a broker who only sends a small amount of applications to them, this could mean getting pushed to the back of the line. At this point it’s up to the lender to go through the approval process, and the mortgage broker really won’t have a say in how quickly everything is completed.
The Lender Isn’t Taking the Deadline Seriously Letting the lender (and mortgage broker) know that there is a strict deadline is important. Often times the underwriters who work for lenders base their daily workload on the deadlines listed on paperwork, which means if yours is not for a couple of weeks, you shouldn’t expect an answer early. Of course putting emphasis on your deadline doesn’t guarantee that things will work out perfectly, but it can help show that you’re serious about buying on time.
The Seller Doesn’t Agree to Extending the Deadline Unfortunately no matter how hard you try to make sure your mortgage is approved on time, it’s never something that’s guaranteed (you can read more about reasons why this happens here: http://www.greatcalgaryrealestate.com/blog/how-not-to-screw-up-your-mortgageapproval.html ). There are many reasons why it could get held up and cause you to have to turn to the buyer to ask for a few more days. While some buyers are willing to extend this, not all of them will. This is why it’s recommended to have a great local Realtor speak with the seller about extending the financing condition date when the buying process first begins. That way if something does happen, they’ll already have agreed to waiting a few more days past the deadline for the lender to finalize approval. Buying a home (and selling one) can be quite a bit of work, especially when the lender is dragging their feet but with proper planning and understanding how to deal with a lender will lead to great results.. This is why it’s better to be prepared for potential approval problems that can arise, such as those listed above.
Aug 9th, 2016
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