How to Avoid a Mortgage Closing Meltdown


So picture this. You found your dream home, your offer is accepted, your target closing date is set, everything is packed, and you’re ready to move in. Then, BAM – you find out something has come up that will delay your closing. Or worse – cancel it.

So what went wrong? It could have been many things or maybe just one thing. It’s important to understand what can potentially cause delays so you can take steps to avoid them.

Couple in front of homeReview, Review, and Review Again
You may be surprised to hear how often closings are delayed due to simple oversights, such as a misspelled name. It’s a good idea to work with your loan advisor to review loan documents as far in advance as possible and ask questions about anything you don’t understand. Double check loan amounts, down payment amounts, interest rates, social security numbers, and name spelling.

Be Available
Your loan advisor will guide you through the process and will let you know what documentation is required. Make sure he or she can reach you and be quick to respond to requests for additional information.

Be Proactive
The more you do ahead of time, the better chance you have to avoid last minute changes. As part of the CFPB’s “Know Before You Owe” rule, also known as TRID, once the closing disclosure has been issued, your lender cannot change terms or costs without triggering a new three business day waiting period. Knowing what you can afford and getting pre-approved before you begin your home search can help avoid closing delays. RPM’s Advance Approval allows you to shop for your home with your loan already approved and helps streamline your closing timeline. When it comes to the down payment, get it ready with the bank a few days early. Arrange for professional services such as home inspections, appraisals and surveys to be completed as soon as possible.

Avoid Major Financial Changes
Applying for new credit accounts, making large purchases, or changing jobs just before asking to borrow a large sum for your new home purchase can jeopardize your loan approval. Even merely opening an account – without charging anything to it – can be a mistake.

The best defense is often a good offense. By doing your homework and preparing in advance, you can avoid last minute surprises and stay on the path to homeownership. Click here to learn more about RPM’s Advance Approval and get started today!

By Farah Rasulzad