Close Your Home Loan on Time and Save that Great Mortgage Interest Rate

The Top 10 Reasons that Home Loans Don't Close on Time

1. Proof of Homeowner's Insurance--Make sure you find out what the lender's insurance requirements are before getting your new policy or submitting your existing one for approval. If you don't, you may find you are underinsured and need to rewrite your home owner's policy which can cause delays.
2. Termite and Repair Clearances--when purchasing a new home, if your purchase contract states that the house shall be cleared for termites or other repairs, your lender will not fund your new mortgage loan until they receive documented proof this work is complete.
3. Homeowners Association (HOA) Certification--HOA certificates can take time and usually require a fee. Submit for your certification to the HOA involved in your purchase or home refinance as soon as you begin the loan process.
4. Title and Vesting Instructions--title cannot be drawn, nor your new home loan completed, until this important piece of information is given. Make sure you communicate early with your escrow officer so that vesting can be determined.
5. Spending During the Home Loan Process--lay low in the spending department when you are in the midst of buying a home or refinancing one. Acquiring more debt can affect your credit rating and your debt-to-income ratio as well.
6. Employment Verification--keeping employment changes to a minimum is also a good idea. After signing your new home loan documents, your lender may call your employer to verify employment. Don't derail your home loan by quitting your job or switching to a new one.
7. When Your Escrow Officer Calls, Don't Delay--Sign your mortgage loan documents as soon as you can. It takes time to fund a loan and record the title. Don't let your rate lock blow during this time.
8. If Buying a Home are you using Certified Funds?--If you are accessing an asset account such as a mutual fund or a stock brokerage account, this too can take time. Make sure you start the process early and ask your escrow officer how they want the funds (usually it is a cashier's check or money wire).
9. Statement of Information--too often this paper is tossed aside by a borrower. Complete it and get it back to your escrow officer.
10. Purchase Contract Changes When Buying a New Home--if you have any changes to your original home purchase contract, get them to escrow to prevent delays in closing your home loan.