Average Time From First Contact to Purchase

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

I was curious how long you (loan officers) typically know someone before they actually buy. I'm sure sometimes it can take over a year before they buy and other people close within 2-3 weeks. What would you say is the average time from meeting the customer to closing?

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Probably 30-45 days most often. It really depends on if they have a place they want to purchase which would be shorter, or if they're just shopping etc.

BECCA9892003 · Joined: 20 Jan 2005 Posts: 400 Location: Altoona, PA

iF THEY HAVE A HOUSE IN MIND..IT TAKES ME 2-4 WEEKS TO PROCESS THEM FOR CLOSING...IF NOT ITS JUST A MATTER OF THEM FINDING THEIR HOUSE...THEN STILL 2-4 WEEKS TILL CLOSING...

chow · Posted: Tue Apr 05, 2005 2:54 pm Post subject:

I'm the same way, if they have a house picked out and have been prequalified, I can close them in 2 weeks, but people need time for home inspections, packing and all of the other various and sundry things. If a home goes FHA or VA, I usually tell the buyer's realtor to give them 45 days due to termite inspection, and if it needs to be treated, fixed. (which is pretty common here in our parts. Almost everyone has a little Powder Post Beetle, Termite or Ant issue if they haven't stayed on top of things.

Which reminds me- I need to get my crawl space checked.......

capnmorgan5555 · Joined: 29 Jan 2005 Posts: 29

Wow, I must be getting to my potential borrowers much earlier in the process, it is not uncommon for the process to take 3 to 6 months for most of my clients.

Of course I do educate my referral sources to have their referrals get to me early in the process so we can correct any potential problems with their credit or other areas before they get all hot and bothered about a house or go looking at houses they can't afford.

It really depends on when in the process you are getting to the people.

chow · Posted: Tue Apr 05, 2005 10:02 pm Post subject:

Okay (MFA) that stands for my favorite.... you guess it...

If I see someone who's challenged, then yes it takes a while. If you have your ducks in a row, as far as payments-then it's smooooooth sailing.

I'm in a buyer's market.

capnmorgan5555 · Joined: 29 Jan 2005 Posts: 29

I didn't say that my buyers were credit challenged, I said I get them to come to me early in the process in case they are. An overwhelming majority of my buyers are 680 and above. I did 2 sub prime deals all of last year. What a majority will send subprime I will get them into FHA at a much better rate and lower fees. Sometimes someone my have a 665 score and with just a little work they can get to 680 or 700 and then qualify for a better program and rate.

I do a comprehensive planning session with all my buyers, even 1st timers. We normally find ways to improve their overall financial situation. Get them into a house they are comfortable with and many times it is more than they originally thought they could do. We have time to do this properly because they come to me early enough in the process that they aren't rushed to find a place to live.

BECCA9892003 · Joined: 20 Jan 2005 Posts: 400 Location: Altoona, PA

With doing our seminars we try to get any new clients to it before or shortly after they start and it has greatly helped the whole process move faster...they are now informed and educated and that makes a big difference...speaking of we had our last on this past tues and we had 25 attend and netted 6 loans so far!!!.....

Professional Mortgage Man · Joined: 30 Jan 2005 Posts: 56 Location: Heartland USA

I seem to motivate my Internet clients to buy the weekend after they talk to me 90% of the time! Loan process as posted above varies,but I try to close in 2 weeks by telling everybody in the transaction that I have a "short sell" portfolio on Wall street. I explain the sellers can do a rent addendum,but to make sure this product,rate,etc is guaranteed,we need to close ASAP. That way I am sure to hold the loan together...and I get paid faster.....yeah baby!

Before I pioneered Internet leads as my main source of biz........My business plan had the traditional ways to get business flowing....and I was quite good at it..people seem to like me...,but it requires a lot of time and energy..no 4 day island trips or annual month long Europe trips..no sir.....

I found the home buying seminars,if you charge them $10.00 bucks a person,would have a better receptive person attending....my local paper and business journal.. will post for free the seminar time,the Realtors would tell their clients and the room was usually free after the $10.00 a head...I always had at least 30 people attending..and they would RSVP,paying in advance....I had 55% conversion to buyers in 30 days...

easy money for 10 closings a month....the hard way... :lol: ..but back then...there was no Internet lead flow ..like today..... :wink: ..so what could a player to do???

Ciao,

Proman 8)