Are you aware that the bank lending process is taking more time? How long do you need for a closing??

Asked by Janine Elkhoury, Woburn, MA Thu Dec 1, 2011

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15
Janine Elkho…, Agent, Woburn, MA
Wed Jun 26, 2013
Lenders do make a difference by the whole process is longer more demanding.
You should be uptodate with your lenders and not take a wild guess. Make sure you contact your buyers lender and mark your file so when you write an offer you are well aware of the dates.
0 votes
Scott McCaul…, Other Pro, Portsmouth, NH
Thu Dec 29, 2011
Having worked at one of the big banks, I see why you might ask this. But, having moved out of the big bank world I now close loans in weeks, not months! How refreshing, right?

I recently closed an out-of-state purchase deal that needed a mail-away closing in 13 days. And that was with the borrower having trouble producing necessary documents. As someone mentioned, that is atypical in how we'd prefer to do things, but know it is possible. I typically say upfront that 3 to 4 weeks gives us plenty of time. At my company, if I have already pre-approved the borrower that is usaully plenty of time as we do more upfront to qualify borrowers (which equals less time once they find a property!)

With purchases there are so many variables- from the borrower's situation and ability to provide documentation, to the appraisal, to title work. That's when having a loan officer who can guide the transaction through thick and thin and communicate effectively to all parties involved becomes so valuable. If you find yourself wanting to work with someone like that, I am always available.

Regards,
Scott McCauley
Web Reference:  http://www.LendWithScott.com
0 votes
Sally English, Agent, Atlanta, GA
Mon Dec 5, 2011
Atlanta Georgia: 20 to 30 days from time contact to purchase is finalized. This assumes buyer-borrower has all documents necessary for loan application.
Web Reference:  http://englishteam.com
0 votes
James Ryan, Mortgage Broker Or Lender, Leesburg, VA
Mon Dec 5, 2011
what is a "push the bank date"?

Jim
0 votes
Heath Coker, Agent, Falmouth, MA
Mon Dec 5, 2011
This depends on the lender, the buyer and their data, the originator, and the property. I have heard that BOA is taking up to 120 days to close.
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Christine Mo…, Agent, Wilbraham, MA
Fri Dec 2, 2011
its all about the "push the bank date"
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James Ryan, Mortgage Broker Or Lender, Leesburg, VA
Fri Dec 2, 2011
It really depends on the lender. American Bank is three days underwriting and 48 hours for conditions, we can close a loan in 15 days. Some of the other lenders we work with are 18 days underwriting, and 5 days for conditions, so they may take 40-60 days. Pre-approvals help speed things up....
Remember, most lenders shrunk their service departments over the last few years, and are now swamped since the rates are at all time lows. Best wishes with the lender(s) you are working with!

Jim, 703 615 4675
0 votes
Andrew Adams, , 01915
Thu Dec 1, 2011
Scott,

you need a better 203K loan officer...Closed a K loan in as few as 11 days and my average application to close on 203K loans in 2011 is 33 days. if you are pressed for time on a K loan give me a call.
0 votes
Scott Godzyk, Agent, Manchester, NH
Thu Dec 1, 2011
The averages are 30 days for a conventional loan and 45 day for a fha,va,usda and up to 60 for a 203k loan. You can cut down on delays by having your buyers preapproved before making an offer.

http://www.trulia.com/blog/scott_godzyk/2011/08/how_do_i_kno…

Please see my tips for getting a mortgage
Web Reference:  http://www.ScottSellsNH.com
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Thu Dec 1, 2011
It takes us about 3 weeks, unless the borrower is slow about providing support docs. I developed a transparent system for myself that keeps everyone involved in the process, both Realtors, buyer and seller, etc. When an update gets emailed, everyone on the transaction distribution list gets a copy. No passing the buck!
0 votes
Steve Boucher, Mortgage Broker Or Lender, Franklin, MA
Thu Dec 1, 2011
I couldnt agree more with Andrews 3 points.
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Andrew Adams, , 01915
Thu Dec 1, 2011
30-45 days should be no problem. I personally just closed a 203K loan in 25 days from application to close.

The fastest I have closed a lon this year was 11 days. Not the way you want to operate in this enviornment but possible. For it to happen the lender has o have the ability, the loan oficer has to put together a good loan package and the borrower has to provide what they are asked for by the loan officer immediately if not sooner. If those 3 things happen 30 or less days should be pretty common.
0 votes
Judi Monday,…, Agent, Green Valley, AZ
Thu Dec 1, 2011
It all depends on the lender. I just had a deal close in 3 weeks--truly a record in this environment and am now going 45 days for another with no end in sight.
0 votes
Richard Shap…, , Framingham, MA
Thu Dec 1, 2011
Interesting topic. I have lenders who can close within 25 days and others that are taking 2+ months.
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Steve Boucher, Mortgage Broker Or Lender, Franklin, MA
Thu Dec 1, 2011
Yes absolutely! Its one of the busiest times in mortgage history. Currently we still have 30 days on purchases as we priortize those. One of the challenges though is getting the appraisal back. The appraisers are incredibly busy and their turn times have increased. I would speak to the lender on their times and also make the commitment date as far out as posible.
0 votes
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