The time it takes to close all loans (both purchase and refinance) fell to 42 days in April, down from 43 days in March and a substantial drop from the beginning of 2017 when the average was 51 days in January.
Although refinances are still closing faster than purchases, purchase originations continue to rule the market. This past month, refis made up only 35% of the market, while purchases dominated the other 65%.
One explanation of this pick up in closing time is due the growing use of technology in the home-buying experience. There are many companies working to take the mortgage industry out of the stone ages and into the 21st century. One company making huge waves is Approved.
Their goal is to streamline the lending process through the use of tech. They’ve created an online and mobile platform complete with automatic document collection and an easy to use interface for both lenders and borrowers. It is game changers like this that cause the rest of the market to keep pace.
We predict that closing times will continue to get quicker as technology gets better and more widely adopted among mortgage professionals.
We here at Griffin Funding use Approved’s secure digital mortgage platform to close loans faster. To get a mortgage through our Approved platform please call us at 888-721-0003 or contact us here to request a secure account.