July 10th, 2019 3:39 PM by Jackie A. Graves, President
Study shows closing times are steadily
A recent survey highlighted homebuyers’ frustrations, revealing
that nearly half felt it takes
too long to get a mortgage.
to a new study from LendingTree,
things are trending in the right direction, as the average closing time has
fallen by a sizable 34 days in the last two years.
According to the study, the closing time for purchase
transactions has been steadily declining, falling from 74 days in 2017 to 51
days in 2018 to just 40 days so far in 2019.
closing time for refinances has also declined, the change is less dramatic,
with turn-times falling from 55 days in 2017 to 43 days in 2018 to 38 days so
far in 2019.
LendingTree notes that some of this decline can be attributed to lower volume,
it also says an increase in digitization has played a major role.
reveals that closing times also vary widely based on the type of mortgage and
the borrower, as those with higher credit scores tend to close purchase
mortgages faster. Refi borrowers with loan-to-value ratios below 80% also
also impacted turn-time, with lower amounts taking the most time. LendingTree
said this is likely because small loans are often made to borrowers with less
stable credit, and because lower-priced homes may have issues that can hold up
charts courtesy of LendingTree that depict the time to close based on loan
type, with certain loan characteristics factored in:
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