Rates & closing speed of average lenders?

Question

What is a good average of rates and closing speed that you guys see in your private lenders? I'd love to leanr more about good standards and connect with investors!Matt

Timothy Hero · Answer

For average speed, single asset refinance is around 4.5 weeks. For purchase, 4 weeks.

For portfolios, expect an extra 5-10 days.

As for rates, this ranges widely, based on credit, property type, loan size, and LTV.

Riaz Gillani · Answer

Rates can be anywhere from 6.500% to 8.000% for a 30 Yr FRM. 6.500% reflecting a higher credit score borrower and potentially with buy down points.

Turnaround is a tricky question also. 30-35 days is a good turnaround for a deal in an appraiser-rich to semi-rich area.

But, a good lender is probably closer to 45 days (due to volume).

David Greene mentions it often in his book about BRRRR. Rockstar lenders / realtors will be harder to reach than newbies or those less qualified...But, they'll always get the deal closed, offer alternative solutions / products, and keep an open channel available for important updates. I'd harp on those qualities rather than rates + turnaround.

You get what you pay for!

Scott E. · Answer

I have a private lender who offers me prime+1% and asks for a 50% cut of the profits.

I have another private lender who wants 7.5% and no cut of the profits.

Both can close in about 48 hours time.

Logan McKay Zylstra · Answer

Speed depends on how busy your lender is. The few lenders that we use are able to close in about 3 weeks right now. As for rates, it depends on the size of the loan. The larger the loan, the smaller the %. I think it's typical to expect 1-2%.