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Why 5 Day Loan Contingency & Then 15 Day Close?

A Realtor asked us yesterday why it takes us an additional 10 days to close if we can release loan and appraisal contingencies in 5 days.

This is why: Within 5 days, we make sure we get the appraisal done as a rush, and we make sure we get an underwriter to formally review the file and give us all of her additional “loan conditions.”

We review the loan conditions and make sure they are all minor or easily satisfied. If they are, we tell our borrower and Realtor to release contingencies.

We then use the remaining escrow period to obtain conditions (deposit explanations, rent rating, contract corrections, etc.), to get the conditions signed off by the underwriter, to order loan documents, to get all loan documents prepared by title and signed, to get the funding package (signed docs) reviewed by the lender, and to fund and record the loan.

Each of the above steps can take one or more days. There is far more to funding a loan than meets the eye.


Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646