Lenders are frantically hiring more underwriters and support people to handle the influx of loan requests for both purchases and refi’s. They simply cannot find enough trained talent to handle the volume. As a result, “turn-times” are slower than usual.
It is essential that everyone understands the definition of a “turn-time” in order to understand why it takes as long as it does to go from submission to approval to loan documents to funding.
Many of our clients do not understand this; they expect us to fund a loan as soon as we tell them their loan is approved with all conditions signed off, not realizing we still need several more days.
A “turn-time” is the number of days it takes a lender to complete a step in the approval process. Below are some standard steps in the loan process. Please note that we do NOT use the slow lenders with long turn-times
“File Set-Up” (the initial input and disclosure process after a lender first receives a file): Turn-time: 1 to 7 days.
“Underwriting” (file review by an underwriter): Turn-time: 1 to 30 days, depending on lender (yes, some lenders require 30 days just to underwrite!).
“Conditions Review” (time it takes underwriter to review conditions we submit after a loan is approved with conditions): Turn-time: 1 to 10 days.
“Documents Drawn” (time it takes for lender’s documents department to draw loan documents). Turn-time: 1 to 3 days.
“Funding Review” (time it takes a lender’s funding department to review a signed set of loan documents and ensure all conditions are met, and all official documents are in order). Turn-time: 1 to 4 days.
Keep in mind also that in between the above “turn-times” is all the time it takes us, escrow and our clients to gather fees, conditions, documents, signatures, etc. We are in a tough business that requires more time and effort than meets the eye.
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646