How long does it take to close a loan?
Getting a home mortgage loan in today’s world is a cumbersome paperwork intensive process. Especially with all the recent regulatory changes added since the market crash.
Not everyone realizes how long the process takes, but this is good information to understand when setting proper expectations for closing dates.
A large portion of mortgage lenders use the same software from Ellie Mae. Through this software, they are able to track the entire process, providing great industry insights.
According to the December 2014 Origination Insight Report from Ellie Mae, the average time to close a loan in 2015 took 49 days.
The average time to close a refinance dropped to 47 days, while the average time to close a purchase transaction increased to 50 days.
Obviously these are averages, so can some loans go through the process faster? You bet. Some slower? Of course.
As a Loan Officer for 20+ years, by far the biggest delay I see in closings is cause by the client, by the client not providing requested documents to the lender in a timely fashion. By having standard documents ready to go up front, and responding to any document request from a lender in a timely fashion, the client can help achieve a smooth and successful on time closing.
Here are a few additional tips for a smooth home loan closing.