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Let’s say you need funding for your rental property, and you need it fast. You google “close my rental loan fast,” or something related, and come across a lender that advertises, “Close in 5 Days.” And wow, that is insanely fast. The reality is, though, that “Close in 5 Days,” can mean different things to different lenders, and rarely does it mean five days total. We’ll dive in and show you what we mean.
At Visio Lending, for instance, we advertise that our average closing time is 21 business days, and by that we mean 21 business days from when the loan is sent to processing. In our blog post, “The 5 Key Stages of the Visio Loan Process,” we outline how our loan process works and how long each stage typically takes. We greatly value transparency, which is why we want to be upfront about how long it will take to close your loan, and give you tips on how to close your loan faster.
Our intention with this post is not to call out every lender on what their actual closing time is, but to give you the mindset of what to think about when you see “Close your loan in X amount of days.” For some lenders, they could have the same definition as us, and mean closing days from when the loan is sent to processing. Others could advertise the amount of time it actually takes to close the loan, once it is sent to closing. That means, after all the documentation has been collected, the appraisal has come in, the loan has been processed, and the Quality Assurance team did all their checks and balances, you will get financing in X amount of days.
That’s why, when time is of the essence, or even when it is not, we always recommend asking your lender how long the loan will take to close and what they mean by X amount of days.
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