Less Time Required to Close a Mortgage

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The average time necessary to close a mortgage loan in July 2014 was 37 days. In July 2014 it was 47 days. This data is published in a recent origination insight report by Ellie Mae, a major software provider to the residential mortgage industry.

The reduction in the time needed to close a mortgage was achieved steadily throughout the year. It dropped from 47 days in July 2013 to 45 days in January 2014. It was 41 days in June 2014.

It took 38 days to close a home purchase mortgage in July 2014. Eight more days were needed a year ago in July 2013. Back then, it took 46 days for a deal of this type to be closed. Significant drop occurred on a monthly basis as well. In June 2014, 42 days were needed for a home purchase mortgage to be closed.

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The closing rate of mortgage originations decreased by 3% on a monthly basis. It dropped down from 60.7% in June 2014 to 57.7% in July 2014. Ellie Mae used a sample of data on 90-day loan applications to produce these figures. The share of closed purchase loans reached 67% in July. This is the highest share the purchase loans have reached since the company began to trace this type of data in the third quarter of 2011.

The average FICO score necessary for obtaining a mortgage loan in July 2014 was 727. It dropped by 1 point from June 2014 after increasing for a period of 4 months. In July 2014, 32% of all closed loans had an average FICO score lower than 700. The share of these mortgages increased by 7% on a monthly basis. It was 25% in June 2014.

The closed mortgage loans in July 2014 had an average loan-to-value ratio (LTV) of 82. The average debt-to-income ratio of approved applicants was 24/37.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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