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Can anyone tell me the average time it takes for a home mortgage to close? We have been working with this lender for a couple of months. We were pre-approved and provided all documents requested. Now, it is time to close. Suddenly, we are being asked to provide other documents. We STILL do not have a closing date. We need to be able to tell the movers/delivery people something, but can't yet because it is taking so long.
We'd like to close in a week, and we still don't have a date.
By the way, my dh and I have excellent credit and the purchase price is well below the debt ratio required.
30 days is probably an average time a lender would request to have to work with. HOWEVER, deals can be rushed. The fastest I have closed a purchase start to finish is 7 business days.
Your lender probably needed some updated pay stubs and/or bank statements as the ones from your pre-approval are probably no longer valid.
Considering you were pre-approved you should be able to get a clear to close from your lender within 2-5 days from when you get them the updated docs. You should be able to get a close date/time a week out TODAY!
If you have all the documents required you should be able to close in about a week. I don't know why it is taking your lender months to close. The only reason that your lender is requirig more documents should be to update the documents that they already have such as pay stubs, bank statements, and other paperwork that is within the guidline of the bank and needto be up to date on the time of closing. You should contact your lender and double check that they received a commitment from the bank. Once they have that they should have an idea when the closing date is.
The fastest I've closed a refinance is 7 days... however, a realistic time frame for a clean loan is two weeks. If the lender is asking you for very strange things, this could be why it's taking so long. There can be a TON of issues that can arise from a loan.
However, a general loan shouldn't take two months at all. They should have offered you some sort of explanation willingly at the 2 week mark. At this point in time they would be fully aware of any odd things that have come up per the approval.
More than likely they screwed up, and have since sent you to another lender, and possibly another after that.
Now based on your saying you have excellent credit, and your debt ratio being fine...something is definitely wrong with the lender you are dealing with. I would get more aggressive with them, even go so far as ask to see the actual approval. This will list all of the conditions that need to be satisfied for your loan.
One other side note... "pre-approval" means absolutely nothing. At the VERY most, it means someone reviewed your credit and believes that you can get a loan. It is not in the least bit binding, and is barely worth the paper it's printed on.
The only benefit of a pre-approval has to do with comfort levels. It can make a client more comfortable to see this pre-approval, and it's most important when purchasing a house. A pre-approval looks better for the buyer to have, but it still only as good as the experience of the person creating it is.
I would definitely get more aggressive now that you're on the two month mark. Many loan officers are afraid to tell someone they can't do the loan, or simply think they can figure out a way to do it. Something is definitely up though.
We'd like to close in a week, and we still don't have a date.
I don't understand. What is the seller or your agent saying about this? Any reputable lender could close you within a week if your credit is as you say. I'll bet you're working with a mortgage broker, and not a mortgage lender. Big difference. Cut your losses as the person you're dealing with is playing games with you. Call Countrywide or Coldwell Banker Mortgage and tell them you need to close in a week and it will get done. Here's a number for CB Mortgage 866-725-5309. By the way, CB Mortgage has closed a loan for me in an emergency situation with less than 48 hours notice. Meaning my buyer was working with a different mortgage company who ended up doing what yours is now.
I think the answer rests with finding out with whom your loan officer/broker attempted to fund your loan. In the last two weeks, a few lenders have literally closed their doors leaving borrowers who were ready to close and fund without a deal. What does that mean for you the consumer? Well, if your broker had put you in a particular loan with a particular company that has now closed or has suspended or canceled a program, you are now without a loan. However, don't think this means that you absolutely will not close.
I am a mortgage professional with a large company and since yesterday have received notification of lenders closing up shop OR canceling programs effective IMMEDIATELY. If your loan officer did not register and lock your deal, he/she may now be scrambling to find a 'home' for your loan. Also, keep in mind several other prospective homebuyers may be in the same boat with their loan officers so this in a manner, 'clogs' up the underwriting department of the lenders that actually CAN do these deals.
Just ask your loan officer to be upfront and honest with what's going on.
I hope this helps!
Good luck! I'm sure everything will work out just fine.
i having been waiting to close on a house since 3/6/2009, i am still waiting. this is a fha loan. i've been jerked around by the mortgage broker and the lenders. i was asked to give bank recent bank statements every week. they had to be stamped by the bank and signed off on. i had to provide numerous letters on any money that was deposited to my account that was not direct deposited. i was told by my mortgage broker that i have been approved with conditions, i have not seen any paperwork and the lenders are still requested updates on my bank account. i am frustrated!
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