Why does it take roughly 30 days to close a home mortgage?

Real Estate Agent with Progressive Realty (Boise Idaho) www.Progressive-Realty.info DB-17066
I find it extremely frustrating that a person with good credit can buy this brand motor home with a MSRP of $280,230 and drive it off the lot the same day and who knows where it will be tomorrow.

2015 Fleetwood Motor home

Yet to buy this home which which is stationary and typically appreciates instead of depreciates, it will take roughly a month for a mortgage company to process all the required paperwork and close!

48 S. Tamarack Nampa home for sale

Even in case of flood, fire or tornado, the motor home will be no where to be found and offer no collateral for the lender and at least the land under the house will still be there to rebuild and worth roughly 25% of the original value.

I posed this quandry to Henry Cisneros when he was the secretary of the U.S. Department of Housing and Urban Development (HUD) clear back 1995  when he visited a project I was involved in for the Boise Valley Habitat For Humanity.  

Unfortunately, 20 years later we have only about 20 more pages of disclaimers to sign at closing in addition to redundentaly signing tax returns for the third time (on our return, then at application and again at closing) so they can claim to have an original signature before it is digitally scanned and emailed to the lender.  I wonder how much worse it would be if the US Government had not passed the Paperwork Reduction Act?



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Larry O'Sullivan
Sandy, UT

Interesting points, especially considering appreciation/depreciation. Reminds me of British discussions recorded in WW2. Complaint that Navy aircraft carriers were slow. Reply was that they were faster than the Airforce's land based runways. Also, diesel provision for my home furnace in Australia, required that I not exceed 20mph when driving my home on highways. So my thoughts for mortgages/loans ~ this is the way it is, and it's hard to change.

Mar 28, 2015 03:35 AM #1
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA

Jim your so right. I had three closing schedule for Friday that were push back until Tuesday just because. All great credit average purchase about 125k. There is so much that could be cut out of the process. 

Mar 28, 2015 03:43 AM #2
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I doubt that anything will get any less paperwork intensive moving forward.  

Mar 28, 2015 04:15 AM #3
Bob Publicover
Publicover Realty Group, inc - Stuart, FL
Thinking outside the box

Jim, OMG,  I wasn't ready for this. You just pointed out an interesting dilemma. I've had fast approval turnarounds maybe 3 weeks when your dealing with a lender you refer lots of business to. But, NEVER same day service unless you borrow from "Godfather Mortgage Inc.". Just too many hands in the process I suppose.


Mar 28, 2015 05:40 AM #4
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID

There is way too much bloat and excess paperwork that serves no real benefit which slows down the process to a crawl.  For example, to sell a HUD forclosure, your company has to be an "approved" broker; however, in Idaho there is no additional criteria to be approved than we have to go through to maintain our license, yet it takes them up to two months to approve an application that should have a 100% pass rate!

Mar 28, 2015 06:44 AM #5
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