Home buyers in Springfield seem to have to wait a little less time than buyers in other places throughout the country to get their mortgage loans. But new federal rules designed to make mortgages easier to understand are adding a few days to the process.
According to Ellie Mae, the average application-to-closing time was 49 days in October, which was the longest time to close a loan since February 2013. Conventional and FHA loans each took 49 days while VA loans took an average of 50.
Robin Schilling, mortgage loan officer at Arvest Bank in Springfield, says the loan process is typically taking 30 to 35 days in Springfield, but lending companies are requesting a lead time of 45 days as they work on a first in, first out basis. Rural development loans, she says, are always subject to longer turnaround times because they have to go to the USDA for review.
The new federal rule, Know Before You Owe, went into effect in October and is adding about three to five business days to the loan-approval process, Schilling says. The rule replaces four disclosure forms with two new ones—the loan estimate and the closing disclosure. The new forms are easier to understand and easier to use. The rule also requires that you get three business days to review your closing disclosure and ask questions before you close on a mortgage.
To supplement the rule, the Consumer Financial Protection Bureau has created several tools to help you navigate the loan process, including a home loan tool kit.
For more detailed information about loans or to apply for a loan, contact Robin Schilling at 417-885-7312 or firstname.lastname@example.org