How long should it take to close a home loan?

I’ve been thinking a lot about the mortgage process.  I’m fortunate to work for a company where our CEO is constantly thinking about the same thing –  How can we make it better and faster and easier for our clients while still giving them solid advice and fantastic rates and loan options?

When I personally get a mortgage, I want to close it yesterday.  I want to move in and place my cups in the pantry and buy a big beautiful wooden bowl to put avocados in that I will never eat, yet most likely photograph for Instagram. I don’t want to wait 30 days because I would worry and worry and worry.  I would come up with 75 reasons for why it is taking so long.  I’ve originated loans for 11 years and handled every imaginable scenario and I would be anxious…. so, I can only imagine how tough it is for you.  Here’s the deal, 30 days is way too long and honestly if you have your docs together why does it have to take so long?

It doesn’t and it shouldn’t.  I’ve looked at every single portion of the process and if the file is prepared fully from the start and we get the appraisal within three days there is 0 reason to take longer then 10 days.

10 days sounds crazy fast, I know, but we have had SIGNIFICANT tech advancements in the last three years.  Now in all fairness not all lenders have the same tech.  They are uber busy making 4 points (that’s 4% OMG do the math, its gross) off your loan and doing nothing to make your life easier. Yikes, too honest there??? Sometimes it’s better to be honest than “play nice.”  It’s the truth and those dinosaurs are about to go extinct. No tech and higher rates…. why…just why…?

At Guaranteed Rate our CEO is pushing and constantly innovating to make the experience better and the time frame shorter.  I admire this.  You have a life we want you to live it!  We now have account check where we can verify assets electronically.  Bye bye bank statement delay!  For conventional loans Fannie Mae and Freddie Mac have started doing appraisal waivers so on some loans we don’t even need appraisals.  If you want one awesome, but if you get an appraisal waiver YOU actually get a choice.  For refinances this is a dream. I have a refinance where I am clear to close in 5 days.  Yes 5 days…. We have red arrow where we fully approve borrowers while they are shopping so we just have to order an appraisal once they are in contract and we have flash close to shorten the signing process.  Every day I get a new email about how we are making the process faster and easier.  This is exciting and amazing, AND we are providing incredibly competitive rates.  All the advancements and we save you money! I love saving money!

Here is the bottom line.  Mortgages are getting speedier every day.  We are still verifying everything, tech just makes us faster.  You can still get the best service in the industry, get experienced advice AND close fast.   If you are talking to a lender who says closing your loan will take 40 days hang up now and call us.  I would hang up on the 30- day lender too.  Say nighty night to the dinosaur and hello to your new best friend who wants to close in 10 days because she too wants to close the house and pick out some furniture. She is helping you plan your new vegetable garden while closing your loan in 10 days.  She also has some avocados that would look great in that bowl you just bought;) The mortgage process can be painless, you just have to step into the future.

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