5 Things That Delay Mortgage Closings (And How to Avoid Them)

Dear Mortgage Broker.

You've done the hard work. Your client is approved, the commitment is signed, and you're ready to collect your commission. Then Friday afternoon rolls around, and your phone rings.

"We have a problem with the closing."

As a mortgage broker, you know that sinking feeling all too well. The deal that seemed done suddenly isn't. Your client is panicking. The seller is threatening to walk. And you're scrambling to fix something that could have been prevented days ago.

Here's the truth: between commitment and funding, a lot can go wrong. Clients can get cold feet. Competitors can swoop in with better offers. And small oversights can snowball into deal-killing delays.

The good news? Most closing delays are completely preventable. Let's walk through the five most common culprits and how you can stay ahead of them.

1. Title Search Surprises

The Story: Maria, a long-time homeowner, was refinancing to consolidate debt. Everything looked straightforward until her lawyer ran the title search. Suddenly, there was an unexpected lien from a contractor who worked on her basement three years ago—a dispute she thought was resolved. The closing was delayed by two weeks while they sorted it out. By then, her credit card interest had racked up another $1,200.

The Problem: Title discrepancies are one of the most common closing roadblocks. They include:

• Mismatched names (maiden names, shortened versions, spelling variations)
• Unexpected mortgages or liens on title
• Outstanding construction bills or writs

The Fix: Ask your clients these simple questions upfront:

• "Are you aware of any outstanding construction bills or disputes?"
• "Do you own or rent your water heater or furnace?"
• "Have you changed your name since purchasing the property?"
• "Has anyone been added to or removed from the title?"

These conversations take five minutes but can save your deal from a multi-week delay. When you catch these issues early, the lawyer has time to clear them before the closing crunch.

2. The Expired or Invalid ID

The Story: Chen had everything ready for his closing appointment. He showed up on time, documents in hand, ready to sign. That's when the lawyer noticed his driver's license had expired two weeks earlier. Now the lender wouldn't fund. The deal was pushed back five days while Chen rushed to get a new ID. Five days might not sound like much, until you realize that on a $200K debt consolidation at 29.9% interest, that's an extra $820 in interest costs, let alone a very irate client.

The Problem: Lenders require valid government-issued photo ID to fund. No exceptions. Expired ID, even by a day, means no funding.

The Fix: Build this into your process immediately after commitment:

• Ask clients to check their ID expiration dates right away
• Remind them they need two pieces of ID (one must be government-issued photo ID)
• If their ID is expiring soon, have them renew it now
• Co-signers need valid ID too

Pro tip: Make this part of your "closing checklist" email. It's simple, but it prevents a completely avoidable delay that can cost your client hundreds or thousands in interest.

3. Home Insurance Delays

The Story: The Patels were refinancing their home. Everything was on track until the day before closing when their lender flagged that their home insurance policy didn't correctly include their new lender's address. Worse, one of the co-borrowers wasn't listed on the policy at all. Their insurance broker was away and took 48 hours to update the policy. The closing was delayed, the lender had to re-instruct the file, and what should have been a smooth process turned into a stress-filled week.

The Problem: Lenders require updated home insurance before they'll release funds. All parties to the mortgage must be listed on the policy, and the new lender must be named.

The Fix: As soon as you have commitment, remind your clients to:

• Contact their insurance provider
• Update the policy to reflect the new lender
• Ensure all co-borrowers are listed on the policy
• Send the updated policy to the lawyer immediately

Don't assume your client knows this. Most people have no idea their insurance needs updating for a refinance. A quick reminder from you prevents a last-minute scramble and ensure their insurance broker has a heads-up so they can provide a quick turnaround.

4. The Friday Closing Gamble

The Story: James insisted on closing his purchase on a Friday so he could move in over the weekend.

The problem? So did dozens of other deals. The lender was swamped with funding requests. The lawyer's office was overwhelmed. A minor question about the trust ledger took hours to resolve because everyone was juggling multiple files. By the time everything was sorted, the banks were closed. James couldn't get his keys until Monday and had to pay for an extra weekend at his Airbnb.

The Problem: Everyone wants to close on Fridays or month-end. This creates a bottleneck:

• Lenders don't fund immediately; funds must be requested
• Lawyers are handling multiple time-sensitive closings
• Small issues take longer to resolve when everyone is slammed
• Some lawyers will "push out" refinance dates to prioritize purchases

The Fix: Whenever possible, schedule closings mid-week. Tuesday through Thursday gives you:

• Faster lender response times
• More lawyer availability if issues arise
• Buffer room if something unexpected pops up
• Less competition for everyone's attention

If your client insists on a Friday closing, set clear expectations. Explain that while it's possible, it comes with higher risk of delays. Sometimes just understanding the why helps clients make smarter decisions.

5. Communication Black Holes

The Story: Everything seemed fine with Sarah's refinance. The lawyer had received the file. The closing date was set. Then, three days before closing, Sarah called in a panic. She'd never heard from the lawyer's office. No one had contacted her about signing documents. No one had confirmed her appointment. When the broker finally got the lawyer on the phone, they discovered the lender's instructions had never arrived. The file had to be re-instructed. The closing was delayed a week.

The Problem: Between commitment and closing, your file passes through multiple hands:

• The lender sends instructions (sometimes through platforms that aren't real-time)
• The lawyer receives the file and reaches out to the client
• Documents are prepared and reviewed
• Signing appointments are scheduled

Each handoff is an opportunity for something to fall through the cracks. And if you're not checking in, you won't know there's a problem until it's too late.

The Fix: Own the communication flow. Check in at key milestones:

Week 1: Has the lawyer contacted your client? Have they received the lender's instructions?

Week 2: Are there any unexpected issues (shortfalls, liens, title problems)? When are docs being signed?

Before Closing: Review the trust ledger. Do the numbers align? Is your broker fee included? Are there any last-minute surprises?

You don't need to micromanage, but these three touchpoints catch 90% of potential issues while there's still time to fix them. Think of it as quality control for your commission.

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Your Control Doesn't End at Commitment

Here's a question for you: What can happen to a client between commitment and funding?

If you answered "they can get cold feet" or "they can receive a more competitive offer," you're absolutely right. The period between commitment and closing is when you're most vulnerable to losing the deal.

This is exactly why you need to stay engaged. When you:

• Set clear expectations about the closing process
• Proactively prevent common delays
• Maintain regular communication touchpoints
• Catch issues before they become emergencies

...you're not just being a good broker. You're protecting your commission and setting yourself up for referrals.

Think about it: When was the last time a client raved about their closing experience? Probably never, right? That's because closings usually range from "mildly annoying" to "complete nightmare."

But when YOU make it smooth? When you catch the expired ID before it's a problem? When you help them avoid thousands in extra interest? That's when clients remember you. That's when they tell their friends. That's when they come back for their next deal.

A five-star closing makes you a rockstar broker.

How Deeded Helps You Stay in Control

Look, we get it. You're busy. You've got deals to close, clients to serve, and lenders to keep happy. The last thing you need is to babysit every closing.

That's exactly why we built Deeded differently. To help you stay in control, close deals smoothly, and focus your time on activities that GROW your business.

Transparency That Saves You Time: Instead of playing phone tag with lawyers or wondering if your client's file is on track, you get a personalized dashboard that tracks every milestone in real-time. You can see when the lender instructions arrive, when your client's signing appointment is scheduled, and when the deal closes—all without making a single phone call.

Speed That Saves Your Clients Money: We close most deals in 5-7 business days (compared to 2-3 weeks with traditional options). For clients consolidating high-interest debt, this can save them hundreds or even thousands in interest. You look like a hero, and they save money. Win-win.

Communication That Prevents Panic: Your clients get direct access to our experienced team who responds quickly.  No more "I can't reach my lawyer" panic calls. No more wondering if their question was received. They get answers fast, which means fewer stress calls to you.

Proactive Problem-Solving: We catch the issues mentioned in this article before they derail your deals. Expired IDs? We check early. Title discrepancies? We spot them during our initial review. Insurance updates? We guide your clients through the process. That's fewer fires for you to put out.

The bottom line: Deeded handles the heavy lifting of closing while keeping you in the loop. You stay in control of the relationship. Your clients have a smooth, stress-free experience. And you get more time to focus on what you do best—closing deals.

You Can Make Closing the Easy Part

For over 50 years, closings have been the most painful part of the mortgage process. But they don't have to be.

When you:

1. Catch title issues early with the right questions
2. Verify client IDs immediately after commitment
3. Ensure insurance is updated before crunch time
4. Schedule closings mid-week when possible
5. Maintain communication touchpoints at key milestones

...you transform closing from a deal-killer into a deal-maker. You protect your commission, delight your clients, and earn referrals.

And when you partner with a closing service that's designed around speed, transparency, and support? You make closing the easiest part of the transaction.

Ready to turn the last mile into lasting smiles? Let's talk about your next closing.

Have questions about how Deeded can support your brokerage? Want to discuss a specific file? Reach out to our team—we're here to help make your closings smoother.

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