Now, in September 2020, mortgage rates are about the lowest in history. Because of that, mortgage lenders in Colorado have been hit with a deluge of new applications which is causing a backlog across the mortgage industry.
Overall it is taking longer to get an appraisal, the time needed for underwriting has been extended, and getting the loan to a closing date takes longer than it used to. Borrowers who took a new mortgage out in the last 5 to 10 years were accustomed to quick closings, so it’s a surprise to them now to learn that their refinance is going to take 45 to 60 days, sometimes up to 90 days.
New home purchases used to be able to close in 2 weeks; now they are taking at least 45 days because the system is overloaded. Most lenders are even having a hard time keeping up with inquiries and it’s taking longer to just a call back or talk with a loan officer.
We want to warn borrowers to be patient, and to be cautious about dealing with the big online lenders. Indigo Mortgage owner, Ben Lucero, says, “In my 20 years of experience, these internet lenders might take your phone call to get you started, but they are also taking your money and are charging exurbanite fees for mortgage loans. If you have a little patience and use your local lender or mortgage broker, you will pay much less in fees than going with those big online lenders.”
Mortgage experts predict that these low interest rates on home loans will be with us at for 9 months to a year, so there’s time to get your refinance done or purchase a new home with record low mortgage rates.