<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1646506622281846&amp;ev=PageView&amp;noscript=1">

Amerifirst blog

 Explore our blog for insights on buying, financing, remodeling, and taking care of your home.

Back to all posts

Don't Wait 90 Days for Your Mortgage Loan to Close

signing-closed-mortgage-loan.jpgHow long is taking for your mortgage loan to close? Did you go with a bank or a company that had the lowest rate? Maybe the mortgage lender you're with is someone your mom or dad recommended. And now it's been 90 days or more and your mortgage still isn't closed. That's not the case at some places. For instance, at AmeriFirst Home Mortgage our closing times are much lower according to the numbers. Let's take a look at a specific loan type: renovation mortgages.

Get your Essential Guide to Buying Your First Home here, and starting planning today!

First, what is a renovation mortgage? This type of loan helps home buyers purchase a house and finance repairs, remodeling or renovations directly into the mortgage. This differs from a traditional home equity loan because renovation mortgages are not second mortgages. Instead it's one home loan, which includes the work right in the loan amount.

The main renovation mortgages are: Full 203k, 203k Streamline and HomePath Renovation. Each of these mortgage loan options has different parts to it, and each has its own requirements. However all of them have one thing in common: most lenders have a tough time dealing with them. If the lender handles one of these loans at all, it typically takes a long time to close. You see, the loan must close before the work begins, so that's a long time to wait to move into your home. And that's if the lender even handles one of these loans. Many will pre-qualify you for a standard FHA loan, but turn you or the house down if it needs work because they don't deal with the FHA 203k.

So, keeping in mind that these loan options take more work and more time to close, let's look at the numbers at AmeriFirst. The figure below (click on it to enlarge it) shows tge median number of days between taking the loan application and getting the loan clear-to-close. You can see that most months are right around 50 days, with some months - March for instance - that are much lower. Bottom line: AmeriFirst is closing "difficult" renovation mortgages in 49 days on average.

closed-loans-average-time-at-AmeriFirst_small.jpg

What does all this mean?

To the average home buyer, waiting more than 2 months to get a mortgage closed is annoying, frustrating and may even be a hardship. Think about giving your landlord notice that you're moving out in 2 months, only to have the lender say, "Wait, wait. It will be another 30-to-60 days until we can close." So a lender who can close a complicated renovation mortgage in less time than others can close standard loans is working above and beyond. 

If a lender can close a tough loan like a HomePath Renovation in under 60 days, imagine what that lender can do with an easier loan like a standard FHA loan or a conventional mortgage loan. Loans closed quicker means people get into homes without having to wait and juggle an apartment and payments with the mortgage process.

Agile and smart - that's how AmeriFirst Home Mortgage does business when it comes to mortgage loans. Renovation mortgages are just one part of the portfolio of business here at AmeriFirst. We're also well-versed in USDA rural development loans, first time home buyer loans and second-home mortgages for that perfect lake cottage. And as you can see, you won't be wringing your hands over long turn-times for closing your loan. Let us know how we can help.

Pre-Approve Me for a Mortgage

 

(creative commons photo credit)

Related Posts

How to Put a Stop to Unsolicited Credit Offers

If your mailbox could talk, what would it say? “Hey Susan, here’s more coupons for your favorite Moose Tracks ice cream you can't get enough of, an overdue bill for your monthly $50 gym membership, and two new pre-approved loan offers from financial institutions you never requested.”

Zero Down First Time Home Buyer Loans

If living with mom and dad is starting to lose its appeal and you’re having trouble knowing if it’s day or night from your basement bedroom, you may be thinking about buying your own place. Scraping together the funds needed for a down payment, closing costs and other new homeowner costs, however, can be daunting. Fortunately, there’s a loan program available that is especially appealing to first-time homebuyers that lets you buy a home immediately with absolutely no money down.  

Five Reasons You Should Stop Renting and Buy Your Own Home

Is it time for you to get out of the rent race and buy a home of your own? There are plenty of advantages to homeownership. And while buying isn’t right for every person or for every life stage or circumstance, there are several perks of homeownership that tend to stay stable over time. These include building long-term equity, the comfort and pride that can be associated with owning your own home and, of course, lower overall monthly cost.

icon_footer_phone-01

Call us

800.466.5626

icon_footer_laptop-01

Get started

Apply online today