Close your renovation loans faster on a regular basis
Use the 203konline.com app available FREE from for your iPhone or Android. Realtors and home buyers can get the process started sooner by using this easy to use app. Go to the Google Play Store or iTunes and get the FREE app.
What is the reason most 203k loans take so long to close? Ask Donna Nix, NMLS# 118690 at First Federal in Columbia SC who close her first full 203k loan in 21 days or Ralph Migliozzi, NMLS# 331142 at International City Mortgage who also closes these loans in 21 days in many cases. I love how Ed Rogers always insures the ansilary reports are provided to us early in the process like any engineering reports or the termite report so we don't end up waiting for them and thereby hold up the process. It is as simple as letting the team function without needless contact.
You wouldn't believe how many times we notify the lender that we will be seeing the property at 10 am on Wednesday only to have that LO call us at 10 am to see how we did as if we aren't walking in the door to make the inspection. How could their time be better spent? Simply by doing their work fast and first. Don't try to be everything to everyone, rely on you partners being professional, and understand that they realize the urgency of closing quickly and if they take an extra day is is likely to provide their due diligence.
It doesn't matter if it is an FHA 203k or a FannieMae HomeStyle Renovation loan, either one can be closed faster if you use a team to back you up. The app will put you in touch with us sooner rather than later. Typically you have a 10 day window to get your inspections out of the way, If you wait till the ninth day to call the consultant you are shooting yourself in the foot, however if you contact the consultant up front on day one you get the jump on the process and can thereby close faster.
I have had new lenders that go all through the process of qualifying the borrower and get the loan totally set up then it is thirty days into the process only to order the consultation and suggest it can be done in a day... it can't. Why not? We must inpsect the property, write up a specification of repairs, and bid the job, then put it out to bid. Did I tell you when the lender does this they have nothing better to do then other than call the consultant every hour asking if it is done yet... lol. Nothing like trying to write a report while people are constantly interrupting you.
That all takes time. Many times we get a large project with a $250,000 construction budget and the contractors will contact their sub contractors and you will be lucky to get that back in two to three weeks. Once those sub contractor bids come back they General Contractor must put it all together and turn it in. This first bid might "validate" the consultant's bid or not, If it does, order the appraisal, then close the loan.
Appraisals are taking about a week and sometimes two to get back. More wasted time. It could have been ordered with the consultant's bid. It didn't have to wait for the contractor's bid.
Contact us and we can tell you who are the LO's who understand how to close them fast. While many can, most talk a good story but when it comes to actually being able to close these loans they lag a bit. We know who does and who can't.
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