Century Funding, Ltd. - Getting Pre-Approved

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.

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.

3. Credit explanations which are not adequately documented and supported or which do not relate to the dates of delinquencies in the credit report.

2. Funds to close verified and adequately tracked. Gift funds, for example, must have donor's ability to give the gift as well as showing the money going from donor to recipient.

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 settlement agent. Each party must have complete understanding of what is going on at any given time.

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Ten Reasons Loans Fall Through