Is 45-60 days to close too long?

[Anthony Conrad]

I am purchasing my first investment property. Rather than use the realtor’s suggested lender, who said he could close in less than 30 days but took a week to get me an application, I chose to use one that I have a relationship with from purchasing and refinancing my own home. Interest rate and closing costs are about the same. I neglected to ask my mortgage broker about his time to close. He is telling me a minimum 45 days up to 60 days. Is that reasonable? My realtor says I will be in breach of contract if we don’t close by the end of the year. Should I have gone with the lender that can close quicker?

[Jill F.]

With financing here in Ohio, 45 days is blazingly fast. Our experience has been that the hold ups are usually with the title company (under staffing), appraiser availability, or due to re-negotiations resulting from inspection findings. Our commercial lender usually has a yes or no from loan committee in 1-2 weeks.