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“Turn Times” vs “Lowest Rates”; Home Sale Statistics

The Best Interest Rate rarely equates to the “Best Turn Times”. We have access to over 50 Wholesale Lenders. Some lenders underwrite loans on the same day they receive them, while others are backed up over 12 days in underwriting. We recently quoted a very low rate for FHA Loans, but the lender offering that rate is currently backed up 11 days in underwriting. As a result, for escrows that need to close in a hurry, we will focus more on “Turn Times” than on rates.

We submitted an FHA Loan to Franklin American on Tuesday Morning this week. We got the approval yesterday. We will get loan documents by Tuesday of next week. But the interest rate was about 1/8 of a percent higher than the rate offered by some of our slower lenders.

The other issue, of course, is flexibility. We have discovered that Met Life, for example, is often far more flexible with respect to loan guidelines than most other lenders, but they always seem to have some of the slowest turn times. Sometimes, however, we have no choice but to endure the turn times because no other lender will do the loan.

Nationwide, foreclosure sales made up 31% of total sales in June. We found that statistic interesting because it appears that the percentage of REO sales in California is far higher – probably twice as high. Also, prices have increased in each of the last three months, but they are down almost 15%,

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167