Why do they need 45-60 days to close a 203k loan?
Why does the LO always say they need that much time to close? I'm about to tell you the naked truth. The simple answer is "they don't". The reason they take so long to close your renovation loan is quite often "it has always taken them that long", or "because someone told them it takes that long", or "our company makes us say that" just in case as we would rather tell you that and close in 30-35 days that to tell you 30 days and need 45 on yours.
I had one loan officer tell me he was ready to close his 203k loan in 28 days and his boss told him to hold it up till 45, as we can't do that on a regular basis. He was fit to be tied. This was a major bank in the business too. That attitude of "don't give great service to anyone or they will expect it" is BS, simply BS. They won't get another 203k loan for 3-5 years and maybe never.
I keep going back to the story about Donna Nix who called me years ago and said "I want to be the best 203k lender in the Carolina's, what do I need to do?" My answer was "race me to the finish line". Read more...