It takes about six weeks to close on a home in most areas of the country. Much of the reason is beyond a home buyer’s control; complex regulations, appraisal backlogs, and last-minute snags. Yet the most common reason for closing delays rests squarely on the home buyer.

National real estate statistics show that problems with home buyer financing account for 38% of all closing delays. This same problem accounts for 21% of all failed closings!

When you obtain a mortgage pre-approval before buying a home, you might assume that you’re in the clear. After all, your mortgage lender already reviewed your credit, verified your employment and performed the underwriting. Yet this pre-approval is not written in stone. Prior to closing, your mortgage lender will perform updated underwriting and re-verify everything.

Any changes to your credit profile, your employment or your financial standing can cause your lender to hit the brakes on your mortgage funding. Your lender may ask for current bank statements and supportive documentation to explain any changes in the picture.

You might be surprised by what sets off your lender’s worry-meter. A sudden rise or drop in your savings account balance can trigger questions. A new job can derail the deal, even if your new position pays a better salary. A drop in your credit score, or increase in your debt load, can mean starting over.

To prevent problems with your mortgage approval, avoid the following between your mortgage pre-approval and your closing:

* Do not change jobs or positions

* Do not apply for new lines of credit

* Do not close existing lines of credit

* Do not make large purchases, even with cash

If you make any cash deposits to your accounts, be sure to have supportive documentation to explain them. This is especially important if any of your down payment is coming from a gift. In fact, it’s best to talk to your lender before accepting a cash gift. The required documentation can be very exacting.

Your Exclusive Buyer Agent can help you find a reputable mortgage lender. He or she will also help you prepare for a successful closing! Find an Exclusive Buyer Agent in your area today.

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