Caliber Home Loans out of Irving, Texas wants to close your mortgage faster than anyone else, and thinks it can accomplish the feat in less than 10 days. Yes, you heard that right. Less than 10 days.
So just how does Caliber plan to reduce the typical mortgage funding timeline of 30-45 days down to less than 10 days?
Finance Your New Home in Just 10 Days?
With their new “Ultimate Homebuying Experience” of course, which they tout as a “streamlined application, approval and closing experience.”
To start, the full application will take “only minutes,” at which point a Caliber loan officer and/or account executive will guide through the rest of the loan process.
In short, Caliber will rely on electronic verification, a growing trend in the mortgage world that has yet to be fully embraced by all lenders. Think Quicken’s Rocket Mortgage.
This includes verifying key income, asset, and employment information without having to send paperwork back and forth with a fax machine.
Instead, borrowers can grant the lender access to these documents using third-party verification tools and/or services to greatly speed up the process.
As a result, the loan officer can order all the documents it needs, instead of waiting on the borrower to get around to sending them.
However, borrowers must sign off to provide access, something that could still prove elusive if they go on vacation during the loan process (this is a common, hilarious problem in the mortgage industry).
Caliber’s Ultimate Homebuying Experience Key Details
First and foremost, this only applies to home purchase loans, not refinancing. Refis take longer and aren’t as time-sensitive. They often also include a 3-day right of rescission, making it difficult (next to impossible) to close them in a week and change.
But if you have a purchase you must close ASAP, this program could be just the ticket. And I’d reckon it has become more and more important to close quickly, what with all the competition in the housing market today.
Perhaps you can sweeten your financing offer by letting them know you plan to close in a couple weeks as opposed to a month. You’ll just need to make sure things actually work out.
One thing I’ll caution with programs like this is that it really depends on the loan file.
Caliber notes that “an approval and closing that can take less than 10 days on eligible mortgages,” but doesn’t seem to guarantee it.
Additionally, they refer to a so-called “eligible mortgage,” which is probably a really clean file that can be pushed through without any major delays.
For the record, this program can be utilized with conventional, government (FHA/USDA/VA), and Caliber portfolio loans, which is a nice touch.
That means you’re not limited in your financing options, despite the extremely fast turn times.
But again, you have to be a pristine borrower to close as quick as they claim they can close.
If you’re self-employed and have a complicated business structure, or questionable credit that requires lots of explaining, or anything else that’s a huge red flag, you probably won’t close in 10 days.
Caliber Home Loans is the 12th largest mortgage lender in the nation and growing. They increased origination volume 106% from 2014 to 2015.
Read more: Sell your home in just 3 days online.