Funding A Loan: How Long Does It Take?

Many times I am asked by people “how long does it take to fund a loan once we sign the initial paperwork?” and in today’s mortgage marketplace — more than ever — the answer is: it depends.

The time it takes to fund a loan from start to finish can vary dramatically between lenders. Some lenders are on “normal” turntimes, others are so backed up, it seems as if they may never unbury themselves from the pile of loans they are currently sitting in. There is no correlation between lender size and turn time. Big lenders have slow turn times, small lenders have slow turn times. Big lenders have quick turn times, small lenders have quick turn times.

Which is why it is more important than ever to know what lenders have what turn times.

There is an argument in the mortgage business that has been going on for ages between mortgage bankers and mortgage brokers. Mortgage brokers can send your file to any number of banks and their argument is that they can select the bank with the best price and best service — so being a broker is better. Mortgage bankers argue that because they have in-house underwriting, they have a relationship with the underwriter and thus their model is better.

In my opinion – the best model is to find a loan officer who works for a bank but can broker away files when needed.

And in today’s market – brokering files to lenders with fast turn times is one of the only ways that you may be able to meet your 30 day sales contract/close of escrow without having to file an extension. There is a process to obtain a loan and if you are a first time buyer and would like to know more about the buying process and/or need to be pre-qualified for a loan be sure to contact Justin McHood at 480-374-0303. To take advantage of the $8,000 buyer tax credit in 2009 as a first time buyer, be sure to contact Candace at 480-202-3558.<.p>

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