Mortgage Processing Delays
According to top Wilmington area mortgage loan officers we are seeing record numbers of refinances combined with record home purchases. In the Wilmington NC real estate metro area we are seeing a record low number of homes available to purchase, especially in the under $400,000 segment. Homes litterally hit the market and sell in hours, when priced and marketed properly. Combine this record sales velocity with now a record rush of refinances and we are seeing the mortgage industry pushed to extreme levels.
Why might the process slow some?
As these record number of refinances and home purchases move through the mortgage process we will see longer windows of due dligence to allow for appraisals to be done. While refinances do not typically go through the various inspections a purchase does, they do share the same appraisal process. In order for a professional certifeid appraiser to do their work well, especially with government back loans, they need time to inspect the property, complete their analsys and complete the various reports that each lender's underwriters require. This is not easy task, and does take time.
What Should We Expect?
With Purchases we normally see a two to four week due diligence period to allow for various home inspections and also the appraisal and mortgage underwriting to be completed. But, in this "perfect mortgage storm" I suspect we will begin to see longer due diligence periods which means buyers may have to put significantly more "due diligence money" down for a seller to agree to take their home off the market, especially in popular price ranges and areas. I would, in the Wilmington area, recommend a buyer to plan on a minimum thirty day due diligence period for FHA, USDA or VA loans and then another week or two after for settlement to occur. On conventional loans I would say 3-4 weeks due diligence as long as they are working with a LOCAL MORTGAGE COMPANY. I'm happy to share my opinions as to who not to use, but not on an open forum. There are some national and internet lenders that I cannot recommend for any situation.
If you have any questions or would like my recommendations as to timing, hold vs sale or who I would use for a lender please call me at (910) 395-1000 or email firstname.lastname@example.org