Common Causes of Mortgage Delays (and How to Avoid Them)

Investing in U.S. real estate has its perks. But, to reap the rewards, you need to get to the closing table. For many foreign investors, mortgage delays can cause deals to fall apart.

The good news is that most mortgage delays are avoidable. When you understand what causes them and prepare accordingly, you can move through the process with fewer setbacks. This guide breaks down the most common issues that hold up international buyers as well as how to avoid them with a strong, well-prepared file from the start.

Key takeaways

• Most mortgage delays stem from missing documents, slow communication, and preventable bottlenecks.
  
  
• Foreign investors face unique challenges, such as sourcing international funds and navigating U.S. compliance.
  
  
• A clean, complete loan file is the fastest way to get approved and close on time.

What’s happening behind the scenes?

The loan approval process shouldn’t feel like an obstacle course. But for many foreign investors, that’s exactly what it turns into. Here’s what happens behind the scenes from the lender’s perspective as you apply for a loan:

• Document collection: The loan officer and processor gather your paperwork: income proof, identity documents, bank statements, and more.

• Underwriting review: An underwriter inspects everything, flagging inconsistencies, missing items, or anything that looks risky.

• Back-and-forth begins: Emails go unanswered. New questions pop up. Documents are requested again, sometimes in new formats.

• Delays multiply: Every missing piece adds time. Confusion builds. Frustration sets in.

• Deals fall apart: If your loan file isn’t “strong enough” to make it through underwriting, the deal may collapse entirely.

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The good news? You can avoid most of this chaos by being proactive and organized from day one.

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‍Read more: Offer Accepted? Here's What Happens Before Closing

The most common causes of delays

Everyone needs to work together in order to avoid delays. That means you, your lender, the title company, and anyone else involved needs to be on the same page. Sometimes, that’s not the case– all it takes is one person forgetting something. Here are the most frequent issues that delay mortgage approvals for foreign investors.

Incomplete or missing documents

One of the most common reasons for mortgage delays is missing paperwork. U.S. lenders need a full financial profile before they can begin underwriting. That typically includes things such as:

• Bank statements

• Government-issued ID

• Rental property lease documents

• LLC entity documents
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Retrieval can be delayed by time zones, language barriers, or slow processing. On top of that, documents may come from non-U.S. institutions with unfamiliar formats with the potential to add further confusion. Every day spent tracking down a document increases the risk of pushing back your closing.

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Pro tip: Avoid delays by purchasing the Waltz Investor Kit to quickly set up your LLC, obtain your EIN, and handle other essentials.

Delays in signing

Delays in signing your initial loan disclosures and term sheet can bring the mortgage process to a complete standstill. Once your lender issues the Loan Estimate and required documents, they must be signed before any further action can be taken because U.S. law mandates that disclosures are acknowledged before the file can proceed.

Pro tip: Monitor your email closely and sign disclosures when they arrive. You can always reach out to your account executive at Waltz with any questions.

Inspections and repairs

Scheduling the house inspection should be one of the first things you do after going under contract. The inspection helps surface any property issues that may impact your willingness to proceed with the purchase or your lender’s willingness to finance it. When inspections are delayed, they create a domino effect. Any findings can lead to further negotiations or required repairs, which take time to resolve. Postponing the inspection pushes the entire loan timeline back and limits your flexibility later in the process.

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Pro tip: Schedule your inspection after going under contract to stay on track.

Appraisal bottlenecks

Appraisals confirm that the property’s value supports the amount being borrowed. But the turnaround time for an appraisal varies by region and market demand. In busy markets, appraisers may be backed up, leading to potential scheduling delays.

Aside from scheduling issues, two other common problems to watch for are:

• Low appraisal value: If the property appraises for less than the agreed purchase price or value needed for a refinance, the lender will base your loan on the lower value. This often leads to last-minute negotiations, increased cash requirements, or disputes over valuation—all of which can stall the closing timeline.

• Disputes or reconsideration requests: When a property appraises lower than expected, you can dispute it by submitting comparable sales data. While this is a valid path, it takes time and can create unexpected back-and-forth between parties. It also doesn’t guarantee that the appraised value will change.

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Pro tip: Do your homework before making an offer or determining the loan amount needed for a refinance. Analyze recent sales of comparable properties (or “comps”) in the area to ensure your offer is in line with market value. A well-supported offer reduces the chances of appraisal issues and gives you a stronger rebuttal if one comes up.

Unexplained or large bank deposits

Lenders are required to verify the source of funds for every dollar used in a real estate transaction. Unexplained deposits trigger additional documentation requests–that means any large or irregular bank deposits must be fully documented. This is especially important for foreign investors transferring funds from overseas, where currency exchange, wire transfers, or non-payroll income can raise compliance flags.

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Pro tip: Be ready to explain and document every deposit that isn’t clearly recurring income or payroll.

Waltz helps you create a strong loan application file from day one

The best way to avoid mortgage delays is to prevent them. At Waltz, we’ll help you speak “lender” to reduce the chance of delays. Here’s what a strong loan application file looks like:

• Clear borrower profile: That means clearly showing who’s buying– especially if there are other partners or LLC members who are involved in addition to yourself. You also need to be able to explain why the deal makes sense financially (DSCR score and otherwise).
  
  
• Easy-to-follow paper trail: Every dollar used in the transaction must have a documented, verifiable source.
  
  
• Reasonable leverage: Over leveraged deals that have too much debt compared to the asset value can raise red flags. Make sure that your down payment is aligned with your lender’s requirements.
  
  
• Trust-building documentation: Consistent, complete, and organized paperwork builds lender confidence. When in doubt, submit more—not less. More detail means fewer questions, fewer delays, and faster approvals.
  
  

At Waltz, we work closely with international investors to build strong loan applications from day one. Our platform and team are committed to simplifying the process and helping you move towards closing.

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