Common Mortgage Processing Delays (And How to Avoid Them)
Appraisal Delays
The number one delay in modern processing is the appraisal. To combat this, appraisals should be ordered the moment the borrower signs their initial disclosures and the intent to proceed is received.
Unverifiable Deposits
Underwriters are notorious for flagging large, unexplained deposits in bank statements. A good processor spots these before submission and requests a Letter of Explanation (LOE) and paper trail upfront.
Employment Gaps
If a borrower has a gap in employment within the last two years, it will be questioned. Preemptively documenting the reason for the gap saves days of back-and-forth.
How to Avoid Them
The secret to avoiding delays is a thorough initial review. Don't just act as a mail carrier between the borrower and the underwriter—review the documents as if you were the underwriter.
Related Articles
Understanding the Mortgage Processing Timeline
A step-by-step look at how long processing takes, what happens at each stage, and what factors can speed up or slow down the process.
How Loan Officers Can Improve Their Workflow
Actionable strategies for originators to stay organized, manage their pipeline, and communicate better with their processing team.
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