John Meussner Mortgage and Lending Costa Mesa, CA (949) 247-7530 Contact Profile
How Long Does the Mortgage Process Take?
If you've followed my blog for any length of time, you know that many questions relating to the world of mortgages have the same answer - "It depends". When asking how long it takes to get a loan from application to
funding, the answer is the same - it depends.
Not only does it depend directly on you, in that we can't underwrite a file without returned documents, but your willingness to get documents back to us quickly ultimately determines how quickly we will/can act on your behalf when it comes to crunch time. If we send you a loan package and you sit on it for a couple of weeks and then need a rush later in the process to meet a deadline, it's really hard to convince operations staff to speed things up - "what about the 2 weeks they had the loan package before returning it?". As an LO, it's tough to argue with that.
It seems to be the faster borrowers act in returning documents and taking action to get things done, the faster the lender moves along, too.
It depends on volume
When rates dip, volume spikes at a lenders office. Since this usually happens quickly, lenders are forced to hire & train new staff in a very short amount of time - this usually creates longer turn times. Processing staff can only efficiently handle a certain number of files at a time, as can underwriters, but that's not the only place where things slow down. Third party companies also get swamped with business - appraisers, title companies, and attorneys all see an increase in business, and this results in things slowing down and taking a little longer to get done. Since the lender slows down AND third party service providers slow down, you can quickly see a pretty drastic increase in turn times.
For this reason, when rates dip, it's extra important to act quickly - if you can get your loan in process BEFORE the inevitable jam-up happens, you can get great terms and get things wrapped up quickly. Keep in mind, as things get jammed up, rates increase (lenders may need to offer
45 or 60 day rate locks, which have worse pricing than 30 day locks), so again. move quickly!
It depends on your unique file
You're a W-2/salaried employee with a long job history, plenty of reserves, a ton of equity in your home, perfect credit and you want to refinance? Congratulations, we'll see you at the closing table in 2 weeks.
You're a commissioned employee working on a contract that's changed drastically, along with your income, over the past few years? You've got iffy credit with tons of inquiries and accounts being paid by someone else? Your appraisal came in just a bit short or you never filed last years taxes? We're still going to get things done as quickly as possible, but for especially difficult files the process can take a month or 2. While it would be nice for the most complicated files to move as quickly as the most straightforward, "vanilla" files, that's just not reality.
It depends on your lender
You want to work with a big bank? You may or may not make it through the process alive, but you can bet you're going to wait a while to get to the finish line, and probably talk to 50 bank employees, some of whom may or may not know what's going on.
You choose a smaller, efficient lender that provides great service ? You'll likely have one LO, one processor, and they'll work directly with the underwriter and closing departments to get things closed quickly.
As you can see, there's quite a bit that goes into how long the mortgage process takes, but if you've made it this far, I'll give you a real, tangible answer - on average, when we get a purchase contract, we do everything we can do get things wrapped up on our end at least a few days before the settlement date on the contract - whether that's 2 weeks away or 2 months away. For refinances. during times of average volume, you can expect the entire process to take about 2-4 weeks depending on many of the things mentioned above.
By John Meussner Mortgage and Lending with Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, NMLS #138061 TMSNMLS 2764
Posted on March 04, 2015 08:51 PM