Why Closings Get Delayed During Underwriting (and How to Avoid It)
By Bill Black – Mortgage Broker & Investment Strategist
Buying or refinancing a home is exciting—until underwriting slows everything down. If you’ve ever thought “Why is this taking so long?” or “What else could they possibly need?” … you’re not alone
🛑 Why Closings Get Delayed During Underwriting
(And How to Prevent It)
By Bill Black – Mortgage Broker & Investment Strategist
🔍 The Big Question
“Why is underwriting taking so long?”
You're not alone — most delayed closings aren’t due to lack of effort… they’re caused by lack of preparation.
🚨 Top Reasons Closings Get Delayed
🔹 Missing or inconsistent documents
- Unmatched pages
- Handwritten bank notes
- Unexplained deposits
🔹 Large deposits not properly sourced
Cash, Venmo, gifts — lenders must validate the source.
🔹 Income issues
Self-employed, commission, overtime, bonuses → underwriters require proof of stability.
🔹 Property or appraisal conditions
Repairs, UCC liens (solar panels), non-permitted improvements.
🔹 Waiting on third-party reports
🔸 Appraisal
🔸 Title & escrow
🔸 Employment verification
🔸 Insurance
🔹 Guideline changes during the process
(FHA, VA, DSCR, Non-QM can shift mid-loan.)
💡 My Strategy to Prevent Delays
✔ Pre-analyze income & documents before submission
✔ Structure income correctly (DSCR, bank statement loans, FHA, conventional)
✔ Communicate early with the Realtor & escrow
✔ Escalate conditions before they become critical
✔ Run a “pre-underwrite” review
✔ Prepare contingency timelines
👉 You don't avoid delays by reacting… you avoid them by anticipating underwriting.
🧠 How You Can Keep Your Closing on Track
Before Applying
- Gather all financials upfront
- Avoid moving money around
- Don’t open new credit
- Tell me about any life or job changes
During Process
- Respond fast to lender requests
- Avoid cash deposits
- Don’t make major financial moves
- Don’t go on vacation close to signing (without telling the team 😅)
🧩 If a Delay Happens — Here’s the Fix
🚩 Issue | 🛠 Solution |
Missing docs | Send full, legible versions |
Reserves short | Gift funds or restructure product |
Appraisal low | Negotiate or strategic restructure |
Tight timeline | Rush request & escalate |
Income challenge | Switch loan program (Bank Stmt ✱ DSCR) |
📣 Thinking About Closing Soon?
A smooth closing takes more than a pre-approval.
It takes a strategic underwrite approach & an advocate who speaks underwriter.
📞 Call/Text: 360-910-3290
🌐 www.billcblack.com
📝 Click “Get Approved” to pre-underwrite your loan NOW
⭐ Want to Avoid Last-Minute Surprises?
Schedule a Pre-Underwrite Strategy Call today 360-910-3290