Common Red Flags That Cause Loan Delays

Buying a home is exciting, but the journey from offer to closing can get bumpy quick. One of the biggest reasons things slow down is mortgage underwriting red flags. These are the little details lenders notice that make them pause and take a closer look. Sometimes that pause turns into a full-on delay.

If you’ve had a recent job change, a surprise deposit in your account, or an old credit card pop back up on your credit report, you might be setting off red flags without even knowing it. The good news is that most of these issues are fixable with a little planning.

Why Job Stability Matters More Than You Think

Lenders want to see steady income. If your work history includes a lot of job changes, recent gaps, or a big career switch, they will probably ask for more info. Traditional employees usually need two years of consistent income. If you're self-employed or working in the gig economy, you’ll likely need to show two years of tax returns and IRS transcripts.

Not sure if your situation looks stable enough? Our blog on documentation best practices will help you understand what underwriters look for. The bottom line is simple: document everything. That means saving pay stubs, job offers, and a written explanation for any employment gaps. If your story is clear on paper, lenders are more likely to move forward without hesitation.

Don’t Let Your Bank Account Raise Questions

Getting a financial gift from a family member is great, but to a lender, it can seem questionable. If the money is a gift and not a loan, you’ll need to prove it.

Also, try not to move money around between accounts right before applying. Even if it’s all your own, those transfers can look confusing. Keep it simple. While you're at it, pull your credit reports for free and clean up anything that might cause issues.

For more on how seemingly small things can slow down your mortgage, check out this article on loan delays from American Residential Lending.

When the Appraisal Comes In Low or Taxes Don’t Match

If the home you’re buying appraises lower than the price you offered, your lender won’t cover the full amount. That means renegotiating with the seller or covering the difference yourself.

Self-employed buyers also need to make sure their reported income matches what’s on their IRS transcripts. You can double-check your info using the IRS Get Transcript tool. Fixing any mismatches before you apply is way easier than dealing with them during underwriting.

One last tip: don’t make big financial moves while your loan is in process. That new credit card or “just one” furniture splurge can throw off your debt-to-income ratio and delay things.

Get Ahead of Red Flags Before They Slow You Down

The mortgage process doesn’t have to feel like a mystery. If you catch potential red flags early (like job changes, odd deposits, or credit issues) you’ll make things easier for yourself and your lender.

And if you want a real partner in your corner, reach out to us at 14 Days to Close. We’ll help you spot and solve issues early, walk you through your numbers, and create a plan that works for you. Even if you're not quite ready to apply, we’ll check in while you prep and stay by your side when the timing is right.

You’re more than a file to us. We’re in this with you for the long haul.