Real Estate and Home Mortgages - Closing period for a Mortgage

Hi,

I know, usually closing takes 2-4 weeks but my refinancing process is taking long time (now more than 2months!!) and loan is not yet closed. I am losing money since I am paying higher mortage due to this slow process. Any options to deal with these type of lenders?

when rates dropped beginning mid december, there was a huge influx of loans with all lenders. double, triple and more volume was being stuffed in a system that wasnt staffed for that much. long story short, many lenders got way behind and 60 to 90 days was common for many places. With this being said, IMO any decent lender should be staffed up by now and should be able to handle the volume and be mostly caught up. Some problems that we also see are rates promised when they hit their lows and brokers purposely are delaying the loan process, hoping rates are going to come back down. SInce they can no longer offer that rate, they are trying to buy time. This may not be happening in your case but i can hardly imagine you are getting the same deal that you were once offered 2 months ago.

Call around and start the process with soemone else (a direct lender or bank) who can get the loan done in 2-3 weeks. There are plenty of those lenders who are caught up at this point. If you have gotten an appraisal, chances are you will forfeit that money paid for it unless a VA or FHA loan. no need to waste more time

Close to 2 yrs ago I helped my son to purchace a house at a reduced price with the promise of a quick closing - it took almost 3 months:wall:

My son's bank has their own appraiser and he wouldn't appraise it for more than the tax bill which didn't yet reflect the recent gut and remodel. They sent us to a mortgage company that kept dragging their feet. I finally went to my bank and was promised a 2 week closing date, when the mortgage company found out, they promised to close by the end of the week which they did. We only went with them because it had dragged out for so long and we needed to close before the offering price was rejected. In retrospec, I wished we had went with my bank - ideally to start with.

btw - the final appraisal was 3x the first banks appraisal.

Mortgage professional here. It could also be the loan officer you are dealing with who is working in slooow motion. I see a lot of this now days. I would call the loan officer and let him know that if you do not close by_____ then you will seek other options.
And as stated in the previous posts the lenders were not geared up for the influx of loans, but still 30 days 45days max is plenty of time to get things closed as long as the loan officer is not dragging their heals. It could also be the loan officer hedged your interest rate and is unable to produce the rate to you, this happens too. HTH