Big Bank vs Small in Current Market Conditions?

[wow]

I went in to talk to a realtor yesterday and also spoke to a loan officer at their in house lending bank (local bank). She told me that they require a mid score of 640 for FHA. I told her I thought it was 620 and she said only big banks are advertising 585-620. She then said big banks arent closing in 30-60 days and that she hasn't seen anyone getting closed with a 620 with the big banks either.

 

 

Is this correct, 1) that big banks aren't closing in 30-60 days and 2) they aren't closing with 620 mid score? We need to close within 60 days so I would need to go with the quickest lendor. Our mid scores are closer to 620 which would help speed up the process if we could get approved with the 620 rather than the 640.

[wow]

Any answers?

[crabu2]

FHA, VA, Fannie/Freddie, and whoever else set minimum requirements for them to hold the mortgage. This doesn't mean a lender can't or won't require their customers to meet a higher standard (Overlays). They do this because it makes it easier to sell the loan.

 

As for closing times, it varies and I highly doubt "big banks" aren't closing their loans within 60 days. Delays can happen because of the volume of business, late appraisals or something else.

 

I'm currently in the middle of a refi and from the time I locked in my rate, it's been about 3 weeks. Most of that delay was me holding the up the app from being sent to the underwriter. I had my loan officer submit my loan yesterday, and was told underwriting was about 9 business days behind. When I originally spoke with my lender, I was told UW was about 14 days behind, but since than, they've been catching up... Refis have slowed a bit because rates started creeping up a couple weeks ago...

 

BTW, when I originally purchased this house, I'm in, from the time I applied than went to closing, was less than 30 days... It went really quick.

 

Good luck on your home buying journey!!!

Edited May 23, 2013 by crabjoe

[wow]

FHA, VA, Fannie/Freddie, and whoever else set minimum requirements for them to hold the mortgage. This doesn't mean a lender can't or won't require their customers to meet a higher standard (Overlays). They do this because it makes it easier to sell the loan.

 

As for closing times, it varies and I highly doubt "big banks" aren't closing their loans within 60 days. Delays can happen because of the volume of business, late appraisals or something else.

 

I'm currently in the middle of a refi and from the time I locked in my rate, it's been about 3 weeks. Most of that delay was me holding the up the app from being sent to the underwriter. I had my loan officer submit my loan yesterday, and was told underwriting was about 9 business days behind. When I originally spoke with my lender, I was told UW was about 14 days behind, but since than, they've been catching up... Refis have slowed a bit because rates started creeping up a couple weeks ago...

 

BTW, when I originally purchased this house, I'm in, from the time I applied than went to closing, was less than 30 days... It went really quick.

 

Good luck on your home buying journey!!!

Thanks for your response!

 

I didn't think what she said was accurate either, which is why I was trying to get some feedback from the mortgage specialists here. I didn't know if new regulations, change in market, etc may have changed that...

[Brian B The Loan Professor]

Every banks turn times will vary - The huge unknown these days is how long does it take to get the appraisal. I ordered one last Monday and the clients still have not heard from anyone. The new regs do not allow me to have direct communication so all appraisals go through a third party vendor. 2-3 weeks for an appraisal makes a 30 day close impossible.

B

[wow]

Every banks turn times will vary - The huge unknown these days is how long does it take to get the appraisal. I ordered one last Monday and the clients still have not heard from anyone. The new regs do not allow me to have direct communication so all appraisals go through a third party vendor. 2-3 weeks for an appraisal makes a 30 day close impossible.

B

Thanks for the response!

 

Ok, then if the holdup isn't really the banks' fault, I think we may go with the "big banks" bc our score is closer to what they accept and we need to close fairly quickly.

[dvdcoll]

Every banks turn times will vary - The huge unknown these days is how long does it take to get the appraisal. I ordered one last Monday and the clients still have not heard from anyone. The new regs do not allow me to have direct communication so all appraisals go through a third party vendor. 2-3 weeks for an appraisal makes a 30 day close impossible.

B

 

Brian, Mine (FHA) was ordered last thursday, and it took place today. The only reason I found out was because I called my realtor to find out what's going on and he tells me, "Oh, I'm hear with the appraiser now". So 1 week from ordered to actually having it done. I'm in NJ if that matters. Now I pray that the appraisal comes in at the contracted price.I already got a seller concession for the roof, so hoping for the best. Even though the offer was made in 1st week of May, my realtor put in July 31st for a proposed closing date without even asking me and sellers agreed. Trying to get it moved up a week so I dont run into August and have to pay another month of rent.