Why am I always hearing about issues with last minute lender delays just before the sales is about to close? How do you avoid that situation?

You can blame most of the delays on regulations. All mortgage lenders are being closely scrutinized.  The result has been microscopic examination of the borrower’s finances, regardless of how financially stable and credit worthy they may be.  

Be prepared from the start. Be sure that your credit report is correct. Clear up and/or consolidate as much recurring debt as you can before the process begins. If you are cashing in brokerage accounts, be sure you understand the timing for withdrawing the money and verify the money trail. If part of your funding is a gift, those funds will need to be traced.

The lender will have a laundry list of requirements up front, including credit report, tax returns, verification of funds and employment, etc. They will verify again just before closing, looking at your accounts for large deposits/ withdrawals, new loans.  Do NOT take on any new debt, i.e. buy or lease a vehicle, purchase furniture and appliances, etc. – until AFTER your loan has closed.

It’s hard to think of every possible scenario. Many delays can be attributed to poor communication. Stay in constant touch with your loan officer, especially as closing day draws near.