Why do they need 45-60 days to close a 203k loan? continued...
... Donna was curious of course, then I asked her how long does it take to close a standard FHA loan, the 203b? She said 15-21 days, then I told her the naked truth, "you can close a full 203k in the same time it takes you to close a 203b loan. We started her 1st 203k loan and she did everything right. She called the consultant out at the same time she started her loan process. We both headed down the path to the finish line together. [Most lenders will get all of their work done and call us to say "all we need is your report". These lenders will take 45-60 days to close because now all they have to do is call and interurpt us asking "how does it look? [a total waste of our time to ask that].
It seems so easy for me to understand that if you call me two or three times each day and break my train of thought... forcing me to calculate the possible completion time it is demoralizing to say the least. You are trying to bust your butt to get the job out. a key person on that deal is calling you, you pick up the phone thinking there is something wrong or they might have new input for the job and they say "how is it going?" Maybe some other consultants are much better than me but when I get on a roll and I'm writing that report, this totally blows me out. I then go get a glass of water and try to figure out where I was in the report writing phase. Read what I wrote last and try to complete that sentence.
BTW, Donna closed her first full 203k loan in 21 days and called to ask "why does everyone else say 45-60 days to close?". Donna is a shinning star in this business, She lets us start when she does. In all fairness the clock starts ticking once the lender has all of your financial paperwork but we can start the day you apply. HUD designed what we do to take 2 weeks then go to bid. We typically take about a week to achieve a report ready to go to bid. The contractors bidding the job may take several weeks, and that can hold up the process. I had a job the other day and the client met contractor 1 at the jobsite and asked for a bid. The contractor asked him who created his bid, the client indicated it was me, and the response was that he would do it for my bid numbers. He hadn't seen my bid numbers but felt confident that the numbers would be fair and it saved him allot of time. The client asked me for another contractor recommendation though he really liked the first guy. The second contractor came out and did exactly the same thing. If Mike bid the job I'm good with his numbers.
The client asked me for another so he is trying to get a bid from the 3rd contractor. This indecision can also slow down the process. We offer contractors a product we call "lost opportunity" bidding which is a great product for a contractor to use as it allows him to hire us when he doesn't have the time to bid a project. We do it for him and save him that time away from his other projects. If you are having issues with getting a contractor to bid your project give us a call.
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