During the mortgage closing process, there are many steps that have to be completed. If anything goes wrong with any of them, the closing is likely to be delayed. In particular, all required loan documents must be fully and correctly completed, reviewed, signed and submitted to the bank on time.
Steps that borrowers have to take include:
- Reviewing and signing documents, including the mortgage, closing disclosure, promissory note and deed of trust.
- Providing documentation of inspections and homeowner’s insurance.
- Paying for the down payment, closing costs, homeowner’s insurance, property taxes and interest by certified check, cashier’s check or wire transfer, or, if necessary, setting up an escrow account.
Problems That Could Slow Down the Mortgage Loan Process at Closing
With so many details that need to be taken care of during the mortgage closing process, delays, unfortunately, are not uncommon. When there are issues with documents, loan officers have to wait and are unable to complete their work. Using a signing company is one way to cut through document logjams and keep the process moving more smoothly and on schedule.
Some problems that may cause delays during closing include:
- Issues with the title. Without a clean title, the process can’t move ahead. Problems include previous liens that were not disclosed. There might also be rare problems with the title itself or with public records.
- Unresolved disputes over property boundary lines.
- Changes in the buyer’s financial situation, which can cause problems with their eligibility for the loan even after they have been pre-approved. Any financial change could trigger a delay, including the buyer losing their job after pre-approval, taking on new debt, falling behind on their credit card payments, starting a divorce, or having a judgment entered against them. In these situations, the bank may require additional explanations and documentation, which will halt the closing process.
- Changes in the economic climate, such as a jump in interest rates, could also affect the buyer’s eligibility for the loan.
- Disputes about the seller’s obligations to make certain repairs.
- Scheduling problems with appraisers, inspectors or surveyors.
- New problems that are discovered during the final walk-through.
- Documents not being signed in time by all required parties.
With all these potential delays, anything that can simplify the process and speed it up will benefit the banks, mortgage lenders, and title companies involved in the closing. A faster process can help eliminate frustrating and costly delays and make it simpler to manage the closing process.
How a Mobile Signing Agent Can Help Keep a Closing on Schedule
A mobile signing agent saves time by managing the entire notary aspects of the closing process. This service is especially useful during closings because mobile agents can get the required signatures from multiple parties.
First Class Signing offers a simple, efficient and secure service for uploading and signing documents remotely or by sending our professional mobile notaries to your site. Contact us to find out more about how our services can help banks, mortgage lenders, and title companies streamline the signing process and help eliminate delays.