Average Time to Close: 46 Days
DAILY REAL ESTATE NEWS | TUESDAY, SEPTEMBER 27, 2016
The time to close on a mortgage loan is leveling off at about a month and a half. The time to close fluctuated in recent months following the implementation of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated disclosure rules.
Read more: Who Pays What in Closing Costs: By State
But the average time to close on a mortgage seems to be settling at about 46 days, according to Ellie Mae’s Origination Insight Report. The report shows that the time to close on a loan has remained at 46 days for the past three months. The average time to close a refinance also averaged 46 days.
Sixty-four percent of real estate professionals indicated their contracts were settled on time in August, while 30 percent said they faced delays to settlement, and 6 percent saw their contracts terminated, according to the latest REALTOR® Confidence Index, a survey sent to more than 50,000 real estate practitioners.
The biggest issues affecting a contract delay were issues related to obtaining financing, the appraisal, and a home inspection, according to the survey. “The fraction of delays due to appraisals has increased in recent months, in part due to a shortage of appraisers and other issues reported by REALTORS® (e.g. being asked to make ‘inspections’),” the report states.