Want to sell your home? Get a FREE home value report Want to buy a home? Search all homes for sale Lender delays can be costly during the closing process. In fact, I recently experienced this with one of my sellers. The property got multiple offers on the first day. We picked a good offer with a reputable lender’s pre-approval attached, and we thought we were good to go. We even got above listing price! Unfortunately, we ended up in a situation where the lender didn’t perform. There are a number of reasons why this can happen. For example, the lender might not have a good pre-qualification process. Some lenders just check the credit score. When looking at offers, it’s important to know that a lender has reviewed all of the buyer’s documents. A number of lenders in our area have a full pre-approval process. These lenders give underwritten pre-approval letters to buyers; that is the best kind of pre-approval letter to have. When a pre-qualification is just based off a credit score, things can get tricky. For example, if the lender just has a conversation with the buyer about their credit score and debts, the buyer might forget to mention certain things. They might not disclose information about alimony, child support, or student debt payments. These issues can derail the entire closing process. As a buyer, pay attention to the lender’s sense of urgency. You want to work with a lender who will be responsible and answer your questions as quickly as possible. A lot of questions will arise during the lending process no matter what your credit score is. Also, you should make sure that you are a good buyer. Be responsive when the lender asks you questions. Don’t go out and accumulate more debt by getting a new credit card or making a major purchase - no boats and no new cars until you close on your home. You also want to make sure that you will be comfortable with your monthly mortgage payment. There are many other components to the closing process, including an appraiser and inspector. You want your agent, lender, and everyone else to work well together so that any potential problems will be solved. Remember, every closing comes with some kind of bump in the road, so work with a solutions-oriented agent and everything will be fine. If you have any questions, give us a call or send us an email. We would be happy to help you!