If you are currently in the market for a mortgage, then you might find this article from MoneyTalksNews about the rates of mortgage rejections from various mortgage lenders very interesting.
I would also like to add my own two-cents worth about some lenders, as well.
Having been a Realtor for going on 24 years, I can also tell you that some type of lenders are also notorious for being VERY slow and missing (actually I think IGNORING) contract deadlines by days and sometimes weeks. I’ve seen delays even when the buyer has been due diligent in getting everything that the lender needs. The lenders excuse is usually that they are backed-up. These delays put the buyer and seller in a very stressful situation.
The closing date is upon them, the home utilities have been ordered switched to the new owner, the moving van is reserved, everything is all packed and ready to go – and then the lender isn’t ready so the closing is delayed. Sometimes there may be more than one buyer and seller involved. An example is when an owner is selling one home and buying another contingent upon the sale of the first, and the seller of the home that they are buying is also buying another home. The closings are lined up like dominoes, so if one falls early in the line-up, they all fall. These delays can also cost the buyer and seller extra money out of their pockets in the form of prorate taxes, and mortgage interest, and (worst of all, especially in my state of Texas) if a delay causes the closing to go into a new year then a buyer could potentially lose their homestead tax exemption for the first entire year.
So what does all of the mean? It means do your homework. Get everything that your lender requires as quickly as possible. Don’t “forget” to mention something in your loan process that could affect your approval. Do NOT buy any big-ticket items in the few weeks before closing that might affect your credit score. Do NOT be late on any type of payments before closing. Do NOT get a large of amount of money from a third-party put into any of your bank accounts in the months prior to closing unless you get the transaction documented as a gift that does not have to be paid back. In other words, be quick, honest, and due diligent and you should not have any last-minute problems.
And be prepared that you might need to have a plan-B just in case.