The Top Ten Reasons your mortgage process didn't go as smoothly as you wanted it to

How do you avoid difficulties that may slow down both approvals and closings? It is nearly impossible to list every issue, but maybe this list of 10 issues will help you identify some areas for concentrated effort.

10. Unrealistic expectations about what the home purchaser can afford. If there is a question about whether or not you may qualify, it should be strongly suggested you take advantage of a borrowing power estimate or credit pre-approval program. If your mortgage company doesn't offer you this, you're talking to the wrong company.

9. Inadequate preparation by borrower prior to application. Real estate professionals and loan officers can work together to prepare borrowers. The more information the borrower has available at application, the more complete the loan officer's analysis can be.

8. Recognizing that borrowers may need loan programs explained. Industry jargon about an index, margin, T-bills and other terminology is familiar to real estate and mortgage professionals. But they have to remember not everyone has an in-depth understanding of the potential impact on loan terms. If your loan officer talks to you in "code", you should find someone sensitive to your knowledge-base.

7. Self-employed borrowers may not realize that they are "self employed". Consequently, you need to be aware that ownership of 25% or more in a company or commissioned income means different documentation requirements. Communicating this could mean that the issue is resolved before the loan comes to underwriting.

6. Government loans with property problems or repair conditions need to be discussed by all parties before closing. Frequently, this means that the question of who pays for the repairs must be addressed.

5. Third party vendors who do not deliver on a timely basis. Credit reports are not the issue they were in past years, but appraisals can be. "It's in the mail" excuses prevent timely turnarounds. Good mortgage professionals take pride in alligning with service providers who perform on deadlines. Bad ones use non-performance as an excuse.

4. Lack of understanding by applicants about what happens during the processing, underwriting and closing of a loan. Explanation of time frames, documentation and responsibilities of all parties is critical. Again, you should be working with someone who is willing to "teach" you everything they know about how your loan process is going to go.

3. Credit explanations which are not adequately documented and supported or which do not relate to the dates of delinquencies in the credit report. Every credit situation is different, and you should look for mortgage loan officers who have experience in dealing with credit scores, and are willing to teach you how to best manage your scores.

2. Funds to close verified and adequately tracked. Most borrowers don't understand the implications of "sourcing and seasoning" of money used in a mortgage transaction. Gift funds, for example, must have donor's ability to give the gift as well as showing the money going from donor to recipient. This must be documented via bank statements, rather than a letter from the borrower stating that "Aunt Maude is giving me a gift, and it's okay."

1. The biggest problem of all, however, is lack of communication. Many parties are involved in each transaction--buyer, seller, real estate agent, mortgage banker, appraiser, attorney and/or settlement agent. Each party must have complete understanding of what is going on at any given time. Your loan officer must take the time to explain the process to you, and make it a priority to keep you updated along every step of the way. If you get and answer that sounds like, "we should be fine," you should be looking for someone else.