Posted 05/04/2018

by Aly J. Yale

Aly J. Yale is a mortgage and real estate writer based in Houston. Connect with her at AlyJYale.com or on Twitter

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Millennial home buyers see time-to-close shrink to four-year low

millennial home buyers

Aly J. Yale

The Mortgage Reports Contributor

Digital mortgages mean faster closing

Millennial home buyers are in luck. Thanks to the increased adoption of digital mortgage processes, today’s up-and-coming buyers now enjoy the shortest time to close since 2014.

Verify your new rate (Jul 19th, 2018)

39 days and done

According to the latest Millennial Tracker from Ellie Mae, it took Millennial home buyers just 39 days to close on their loans in March – the shortest time recorded in more than four years.

Joe Tyrrell, Ellie Mae’s executive vice president of corporate strategy, Millennials have digital mortgage tools to thank for it.

“With the ongoing adoption of digital mortgage solutions, Millennial homebuyers were able to close purchase loans in 39 days in March, the shortest amount of time since Ellie Mae began tracking Millennial loan data in January 2014,” Tyrrell said. “As more Millennials reach the prime home-buying age of 29 to 32 years old, they are finding a mortgage experience leveraging technology that is fast and engaging in ways that their parents couldn’t imagine when they were buying their first home.”

Time to close was fastest on purchase loans, at 39 days. Conventional loans closed in an average of 40 days, while FHA and VA loans closed in 41 and 44 days, respectively.

How long does it take to close a mortgage?

More Millennial moves

The month of March also saw several changes in the general makeup of Millennial buyers. According to Ellie Mae’s data, the average age of a Millennial home buyer rose from 29.5 to 30.1, while the average FICO score for a Millennial dropped to 721 – down from 724 in February.

Home buying trends: Millennials are more conventional than you might think

Male Millennial buyers had slightly higher scores at 723 v. females’ 722. Millennials also showed lower debt-to-income ratios than the average borrower (25/38 v. 26/39), as well as higher loan-to-value ratios (87 v. 79).

The top cities for Millennial buyers were Dyersburg, Tennessee; Binghamton, New York; Fairmont, West Virginia; and Mount Sterling, Kentucky. Millennials accounted for 73 percent of all closed loans in Dyersburg in March.

Verify your new rate (Jul 19th, 2018)

Get today’s mortgage rates

Want to join the Millennial movement and become a homeowner? Shop around and see what rates you qualify for today.

Verify your new rate (Jul 19th, 2018)

Aly J. Yale

The Mortgage Reports Contributor

Aly J. Yale is a mortgage and real estate writer based in Houston. Connect with her at AlyJYale.com or on Twitter

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

2018 Conforming, FHA, & VA Loan Limits

Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)