Mortgage Lending: The Competitive Advantage of Shorter Close Times

The housing market was on fire last year. Home prices hit a 14 year high, and buyers engaged in bidding wars and submitted above-asking-price offers. At the same time, loans took far longer to close, making it harder for borrowers to compete in the extremely tight market. Buying a home is already a stressful process, but last year was one of the most challenging on record.

Borrowers Saw 50% Longer Close Times in 2020

In January of 2020, it took an average of 45 days to close a purchase loan and 38 days for a refinance loan. By October of 2020, those times had gone up to 54 days for purchase loans and 57 days for refinances. That means buyers waited 20% longer for purchase loans and 50% longer for refinances, just when the demand for homes was at its highest for the year.

The Solution: Streamline the Workflow With Technology

Digitization of the overall lending workflow eliminates capacity constraints and solves the problem of extended close times. From the first contact through to closing, lenders need the tools and technology to streamline the many steps along the way. Here’s a quick look at a just few of the ways technology can shorten close times:

Home Captain’s suite of products and services helps mortgage lenders increase capacity and conversions while improving retention and reducing runoff.

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