Choosing the wrong lender can lead to a home sale not closing on time and other unwanted scenarios. Luckily, whether you’re a buyer or a seller, there are steps you can take to ensure this doesn’t happen.
Why is choosing the right lender critical if you want to close on time?
For one thing, statistics show that not choosing the right lender can be disastrous. Every month, mortgage services provider Ellie Mae produces a report they call the “Origination Insight Report.” In this report, they track and pull all kinds of data from all the lenders who use their software to process loans. We’re talking millions of loans.
What does the data from the latest report tell us?
Firstly, it tells us that the average numbers of days it takes to close a loan from the application to the closing is 46 days. That’s way too many! Secondly, it tells us that only 74% of purchase loans that are submitted end up closing. That means that one out of every four deals falls through, or 25% of the people end up having to put down earnest money, lose their inspection costs, and possibly lose their appraisal fee.
What can you do to make sure you don’t end up becoming one of these statistics?
If you’re a home buyer, start the pre-qualification process as early as possible. Get your documentation in order and choose a lender that has a track record of success.
If you’re a seller, do what you can to verify the pre-approval. Check out things like what kind of lender the buyer is using, how much they’re putting down, and how many days they need for the financing contingency.
If you or anyone you know has questions about the mortgage process or about real estate in general, please don’t hesitate to call us or visit our website. We look forward to hearing from you!