Time and timing for getting a mortgage are different than they were as little as a year ago.  The current mortgage environment has not only stretched out the time to get things done but also introduced more variability.

The investors are requiring much more careful scrutiny of loan documentation by the underwriters.  The lenders we work with as mortgage brokers have to buy back loans from the investor when the documentation is lacking in some way.  This means they will have to tie up the capital they intended to use for the next loan and sooner or later must cease taking in new loans.

Appraisers and appraisals are also under itense review and are operating with new rules which stretch out their timing.  Appraisers for conventional loans can no longer be picked by the mortgage consultant and are instead assigned through a third party.  Granted, this may improve appraisal independence through the "arms-length" nature of the system, but it removes our abiity to pick someone who can get the job done quickly when we need it.

Continued low mortgage rates have created a backlog that the lenders and underwriters struggle to handle.  Lenders do not want to hire additional staff only to have the loan volume disappear when the rates swing back up.

WHAT YOU CAN DO!  Whether you are a buyer, seller, real estate professional or mortgage broker you can be careful about tight schedules.  I personally tend to be optimistic when someone quotes me a time-line for an activity so I must remember to allow more time than the quotes.  Often my clients and agents now hear me say "lets allow the extra time and then see if we can beat it."  It never hurts to have an extra week of overlap between your old housing situation and the new one, more time for the move and clean-up always seems to be a blessing.

Be flexible, plan alternatives and contingencies and you'll have a much less stressful transaction.