Dear Sue,
I bought a home through the Veterans Affairs and have been in escrow for almost 40 days. I can’t believe that this loan process is taking so long. I am actually thinking about changing lenders.
I don’t think my lender is doing everything he can to get my loan closed. Every time I call my agent to get an update he tells me “we are still waiting on the loan.”
My escrow should be closed by now. Would I be foolish to hand over my deal to another lender to see if somebody else could speed it along?
— Frustrated Frank
Dear Frank,
It could be a huge mistake to change lenders at this point in your transaction.
I am sure your lender is doing all he can to facilitate your loan. The truth of the matter is that you are not alone in feeling frustrated in “today’s world of real estate.”
Buyers are not the only party impatient at the rate that things are getting done. Sellers, Realtors and lenders are also having to get used to new time frames in loan processing.
According to information from a Roseville broker, Louise Buford, agents should encourage their buyers to ask for at least 45 days to complete their escrow. That is the very minimum. Many escrows are taking longer.
Buford explained that once a loan package is completed and submitted, the underwriters are taking up to 10 days to review the loan and another 10 days to fund it.
An agent I work with told me that she is currently assisting a client who is purchasing a home with a VA loan. The loan process has taken about two weeks longer than expected.
When the VA lender talks about “days” they refer to working days. The buyer and their agent think in terms of calendar days.
Lenders are overwhelmed by their current workload. A Countrywide Financial lender reported that her office was previously processing 50 loans and is now processing more than 200 loans! They simply don’t have the staff to keep up with the demand.
In addition to a greater demand, the tighter underwriting requirements and new loan programs are adding to the challenge and subsequently adding to the timeframes.
My recommendation to you would be to give your lender everything they need as soon as possible and be prepared for the process to take a minimum of 45 days at best.
Always be ready for your lender to ask for one more piece of documentation. Be patient and responsive. It’s a matter of good Home $$$s and Sense.
Sue Thompson is owner and sales manager of HomeTown Realtors. She can be reached at seesue@seehometown.com, or on the Web at www.homedollarsandsense.com.
