I am in the process of refinancing one of my investment properties. It has taken several attempts to do this as the loan process has tightened up over the past few years. The equity is there and the interest rate drop from the current loan warranted a refinance, but finding a like kind appraisal proved difficult. Once past the appraisal hurdle, it was mostly green lights. I did notice one thing during the entire process that is worth a little attention. The longer I took in submitting requested paper work, the more additional inquiries popped up in the process. It was as if the underwriting staff got bored waiting for feedback and started digging deeper into my finances.
It should be understood that the process of qualifying for a mortgage loan boils down to a neat and tidy financial house. The loan originator has to be convinced that you can easily manage the debt from the loan. Getting and keeping your finances in shape during this process is essential in closing the deal. The longer you drag the process out the longer you will need to keep looking neat and tidy financially. You will be surprised what last minute mistakes can crop up to raise red flags.
One example of an oops before close occurred a week before final signing. I accidentally scheduled two mortgage payments for the same date on a property I have. I did not have the funds for the second mortgage payment handy as none of my rents had cleared. This led to a scramble to juggle funds to cover the mistake. Lenders definitely do not want to see missed payments on a mortgage and I would have had a bit of explaining to do, had the mortgage bounced.
I keep a close eye on all accounts during the loan process. It is better that you catch and fix mistakes before they are flagged by the lender. The loan process can go much faster and smoother if you produce and process requested info in at least a twenty four our turn around. The longer you drag out the process, the more likely mistakes can occur to throw a wrench in the loan process.