My Mortgage Closing is Taking a While
Should I Be Worried?
In this age of immediate gratification we are in which effects so many areas of our lives it is no surprise that often times when things take longer then we expect them we get anxious and begin wondering if we have made a mistake or will be rejected. Especially when it comes to life changing decisions such as a mortgage.
So what does it mean if your mortgage is taking longer then usual? To answer this question we need to understand that many mortgages take up to a month to finally flesh out, but you shouldn’t jump to the worst case scenario if the process does take longer. There are a few different reasons that the mortgage closing process may be extended and we here have compiled a few of the most common reasons:
A main reason why closing might be taking longer then you anticipate is the appraisal value of your home. If an appraisal comes in too low a member from the lending team must find out what has caused this dip and whether or not the problem can be resolved or whether the loan needs to be adjusted as work on a suspended loan cannot take place.
Life events such as marriage, or divorce can also delay the mortgage closing process as can any liens against the property.The bottom line is that issues like appraisals and title often need time to be resolved accurately, and that time can translate to a later closing.
Any issues with underwriting can also slow down the process. Underwriting is when the lender evaluates your IPAC, which stands for income, property, assets, and credit, to determine if you qualify for a mortgage loan. It is during this process that thew lender confirms your financial ability to purchase a house.
All these can factor in to longer closing times but as long as you have all of your information taken care of the longer wait shouldn’t be anything to worry about.