Lending delays – why do they happen?
Some home loan approvals can be processed in days, others take weeks. Why the delay?
Don’t be tempted to blame your mortgage broker because rarely they are the ones causing the hold-up. Usually it is either a delay by the lender or incomplete client paperwork that causes the blowout.
Some lenders fund loans faster than others, and an increase in the number of loans can slow down a lender’s usual processing time. The time of year also has a part to play – expect delays the closer you get to Christmas, as well as around Easter and the end of the financial year.
You can help move along the mortgage approval process by pulling together the necessary documents before you apply for a loan. Missing documents and inconsistent information on the paperwork are common reasons for delays.
The more complex the loan, the longer it takes for lenders to review. This is why many clients value the help of a mortgage broker – to assist with the time-consuming task of getting loan documents ready for approval.
Another important benefit of dealing with a mortgage broker is that we often know which lenders are experiencing processing delays, which means that if you need fast home loan approval we can usually recommend a lender that is more likely to provide approval within the necessary time frame.