Now, in September 2020, mortgage rates are about the lowest in history. Because of that, mortgage lenders have been hit with a deluge of new applications which is causing strains across the industry.
That means it’s taking longer to get appraisals, underwriting turn times have been extended, and getting the loan to closing is taking more time. Borrowers who took a new mortgage out in the last 5 to 10 years were accustomed to quick closings, so it’s a shock to them now to hear their refinance is going to take 45 to 60 days, sometimes even 90 days.
New home purchases used to be able to close in 2 weeks, but are now taking at least 45 days because the system is overloaded. Most lenders are even having a hard time keeping up with inquiries and it’s taking longer to just a call back or even get a loan officer on the phone.
This is where we want to warn borrowers to be careful with the big online lenders. Indigo Mortgage owner, Ben Lucero, says, “In my 20 years of experience, these large lenders might take your phone call to get you started, but they are also taking your money and are charging exurbanite fees to get a loan done. If you can have patience and stay with a local lender or mortgage broker, you will pay much less in fees than going with those big online lenders.”
Mortgage experts are predicting that these low rates will be with us at for 9 months to a year, so there’s time to get your refinance done or purchase a new home with record low mortgage rates.