Why Your Loan Isn’t Clear to Close Yet: The 5 Most Common Delays

Getting approved for a home loan should feel exciting, like the moment things finally start to fall into place. But when the process slows down or hits a pause, it can leave buyers wondering: “What’s taking so long?”

Here are the five biggest reasons your loan approval might be taking longer than expected, and what to do about each one.

1. Missing Documents or Incomplete Paperwork

This is, hands down, the most common delay.

Lenders need a full financial picture before approving your loan. If something is missing, such as a bank statement, W-2, pay stub, or tax return, the file can’t move forward.

Why it matters:Even one missing page in a bank statement (yes, even the blank page) can hold up underwriting.

How to avoid the delay:

• Submit everything at once

• Double-check that every document is complete

• Respond quickly when your lender asks for updates
  

A fast borrower equals a fast approval.

2. Large or Unexplained Bank Deposits

If you’ve recently made a big cash deposit or moved money between accounts, it raises questions for the underwriter.

Why it matters: Lenders must verify that your down payment and closing funds come from acceptable sources, not loans, not unreported income.

How to avoid the delay:

• Don’t make big deposits close to applying

• Keep funds stable

• Provide proof for every large transfer or deposit
  

If you can explain it, we can usually clear it.

3. Employment or Income Verification Delays

Even if you’re fully employed, lenders still need to verify your income directly with your employer.

Why it matters: If your HR department is slow to respond or only handles verifications on certain days, it can create a bottleneck.

How to avoid the delay:

• Give your employer a heads-up

• Make sure HR has the correct contact info

• Respond quickly to requests for updated pay stubs or employment letters
  

A simple nudge often solves this one.

4. Credit Complications or Updates

Sometimes your credit report needs clarification: a recent inquiry, a new account, or a discrepancy between the report and your application.

Why it matters: Lenders must confirm your credit is accurate and your debt load hasn’t changed.

How to avoid the delay:

• Avoid opening new credit lines during the mortgage process

• Don’t make major purchases (cars, furniture, etc.)

• Share updates with your lender immediately
  

A clean, stable credit profile keeps things moving.

5. Additional Underwriter Conditions

Even after review, an underwriter may request extra documentation. It’s normal, think of it as fine-tuning your file to meet guidelines.

Why it matters: Conditions are part of almost every loan approval. They can be simple (updated bank statements) or more detailed (letters of explanation).

How to avoid the delay:

• Respond quickly

• Stay organized

• Be proactive if you know something might raise questions
  

The faster we clear conditions, the faster we close.

Most loan delays aren’t deal-breakers; they’re just small speed bumps that need a little attention. The key is staying in touch, responding quickly, and partnering with a lender who keeps you informed every step of the way.

If you’re starting your homebuying journey or feeling stuck in the approval process, I’m here to guide you, answer your questions, and help you move forward with confidence.