People assume a slow closing means a slow underwriter. It almost never does. Underwriting turn times are measured in days. Files are measured in weeks because of what happens around underwriting.
Here is what actually holds things up.
1. Large deposits nobody explained
Any deposit that does not match your pattern gets questioned. A gift, a bonus, a transfer between your own accounts, the sale of a car. Each is documented differently.
Flag them in week one with an explanation. Waiting to be asked costs a week every time.
2. The appraisal ordered late
On older housing stock this is the single biggest risk. Appraisers comment on plumbing, foundations and deferred maintenance, and FHA holds properties to condition standards that older buildings sometimes fail.
Order early. Discovering a condition issue with ten days left is how escrows get extended.
3. An incomplete rent roll
On any investment property, missing leases or leases that do not match the stated rents will stop a file cold. Ask the seller for the complete rent roll and every current lease before you remove contingencies.
4. A letter with the wrong date on it
I had a file where an income letter said August and needed to say September. That one word would have made underwriting treat the money as an unsourced deposit rather than income. Different file. Possibly a dead one.
We caught it three weeks early and had the letter reissued. That is the job.
5. Insurance bound too late
Lenders need the policy before docs. On some properties the quote also has to include a replacement cost estimate from the agent. Start the insurance conversation when you open escrow, not when the lender asks.
6. New credit during the process
Financing furniture before closing is the classic. Any new account changes your debt-to-income and can trigger a re-underwrite. Buy nothing on credit until you have the keys.
The pattern
Every item on this list could have been handled in the first week. None of them is complicated. They become problems because nobody raised them until they were urgent.
That is what you are paying an advisor for, and it is why I ask for things early that seem premature at the time.
About the numbers in this article
Any interest rates, monthly payments, down payment figures and repayment terms shown above are hypothetical examples for illustration only. They are not an offer to lend, not a rate quote, and not a commitment. No rate shown is locked or available on request.
The annual percentage rate will be higher than the note rate, because APR reflects financing costs in addition to interest. Both the rate and the APR you are offered depend on your credit score, loan amount, down payment, occupancy, property type, loan term and current market pricing, and will differ from any example here.
Payment examples show principal, interest, taxes and insurance. Your actual payment may be higher once mortgage insurance, HOA dues, flood insurance or other charges apply. Repayment terms shown are 30-year fixed unless stated otherwise.
All financing is subject to credit approval, income and asset verification, and a satisfactory appraisal. Programs, rates and terms are subject to change without notice, and not all products are available to all borrowers.
Ryan Van Til, NMLS #2732776. Pacific Trust Mortgage, NMLS #2573894. Licensed by the California Department of Real Estate. Equal Housing Opportunity. Your binding terms are those disclosed on your Loan Estimate and Closing Disclosure.