The average time required for millennials to close loans varied greatly during July, with borrowers needing as much as two months to complete the process in New York, according to the latest Ellie Mae Millennial Tracker.
Nationwide, the average time to close all loans in July was 44 days, with the average time to close a conventional loan holding steady at 43 days. The average time required to close a Federal Housing Administration (FHA) loan in July increased by one day to 44 days, the tracker found.
The average time required to close Veterans Affairs (VA) loans in July decreased to 42 days from 46 days. Meanwhile, Ellie Mae said the average time to close FHA refinance loans jumped to 50 days from 45 days one month earlier.
“Between the competitive housing market with limited inventory and the 30-year note rate at a 2017 low, some millennial homeowners may be deciding to stay put and take advantage of the opportunity to refinance,” Ellie Mae Executive Vice President of Corporate Strategy Joe Tyrrell said in a release. “With many more millennials interested in becoming homeowners for the first time, however, the purchase market is still very strong.”
The tracker found that the average time required to close a loan in July was 60 days in New York; 40 days in California; 41 in Illinois; and 46 days in Florida. Despite an increase in refinances during July, the average time to close those loans decreased slightly to 46 days from 48 days the prior month.
During July, millennial men took out loans that averaged $181,568, while the average loan for millennial women was $170,301. For purchases, the average FICO score was 748 for a conventional loan, 688 for an FHA loan and 742 for a VA loan, the tracker found.