What's Your Lead Time?

[Blue1]

That's the question I am getting lately from LO's. I have a vague idea, but can never tell because of the "bearish" assignments I get. You know, the ones that look "innocent" and end up taking more time than the money you make for them. In any case, for me, it's hard to give an accurate "lead time" 'cause I haven't yet been able to predict the future.

How 'bout it? How do you guys figure your "lead time" or do you? Are you getting the same calls? What do you tell them?

 

[The Bob]

Yea, I've gotten a few like that lately. 7-10 days is standard, less if its a cookie cutter. One thing I've noticed is that they are really waiting till last minute to order appraisal. I think part of this is due to how underwriting has changed with some properties not getting an appraisal. I have a friend who owns his own mortgage business and I was asking if he was seeing more of the 2055 and 2075. He said that sometimes by tweaking the loan amount he can go from a 2055 to a 2075 or no inspection at all. Works in reverse, so if they are trying to pull more cash out that may result in order for full appraisal.

 

[Mountain Man]

Same here, and I agree that many seem to wait until the week of closing to want an appraisal. One to two weeks for my best and regular clients, except for the occasional white elephant. I turn down ALL AMC's request that want 24 to 48 hour turn around. Just can't take the pressure any more, and I have to take care of my first & best before these morons.

 

[Joe Birrell (NY)]

I give the most vague response I can, i.e........"it depends on how fast property owner provides access and how complex the property is" - then, if that dosn't satisfy them I say "+-10 days" . It's a rethorical question on their part. At this point, I could care less what they want or need. It takes as long as it takes. I create enough pressure on myself, so I ignore any added pressure from them. It usually works out ok. In most cases, I find
they just ask for the sake of asking and/or somebody told them to ask.
I have a regular customer base and for the most part they are reasonable.
I just heard the other day that one bank is so backed-up with processing
it is taking them +30 days to review completed loan packages. I don't deal with AMC morons, or any high pressure mortgage brokers.

 

[Restrain]

Generally we're telling people we're a week out on appointments, with the report to follow after that depending on what we're looking at. If they want it in 2-3 days, that's now a rush and the fee goes up, cash at the door. I tell people to order early and often. It's just like Christmas at the Post Office.

 

[Chris Harrison]

My current regular clients know it's 10 days or less , new clients are told 3 weeks and COD .
That's the story and I'm sticking to it 8) !

Chris

 

[John Hassler]

I've been quoting four week out here on the left coast for months and I still get a lot of "OKs". Usually 10-14 days before I look at it and another 10-14 to get it done. And I'm not the cheapest guy in town either (although on some jobs I think I would do better flipping burgers).

Also, is it just me or have the problem properties (the dregs) started to take over. Usually when the dregs come out it the end of the refi boom as the LOs have gone through the gravy and are taking the marginal people/properties they wouldn't waste time on earlier.

John Hassler

 

[Terrel L. Shields]

Second that. I am about 10-14 days out on Res. 4-5 weeks on commercial. Seems the extended low interest rates are now down to the fixer upper level. One old house I know is going FHA that has not been lived in in 20 years and has no functioning plumbing. Another assignment I recently had was amatuerish remodel with no carpets or linoleum over the subfloor. No doors except the bathroom. $20K+ to finish. Another secondary market was Manf. Home with add on that wouldn't make a quality barn. Really crummy comps.

 

[Frederick R. Ruffell]

This is what i tell them. "Currently, my next available inspection date is X. This is subject to change as I have several calls out to borrowers and expect them to return them as soon as they get home from work and finish their dinner. I can complete the report within X (currently 5 to 7) number of working days after inspection. My fee I $zzz.xx If you decide to place this order please visit my web site and use the order form provided." :wink:

 

[jtrotta]

Perfect case of; "It Depends" - generally give them where I'm at now and then put the whole deal on what "Their" customer tells me. You can tell em 14 days out and they still give you the work, I think they're just trying to get a possible time frame.

8)