And how has that affected the cost of an appraisal? Bealer admitted that the price has gone up. In the San Fernando Valley, his cost of an appraisal for a three-bedroom, two-bath home valued at about $180,000 is $225; by June the appraisal fee will be raised to $250 for a similar property.
Warren Raybould, California Federal Savings' senior vice president for residential lending nationwide, said most loan appraisals (refinance and purchase) were being accomplished in 10 days, and that funding could be expected in another 25 days. "Our loan volume, however, has substantially increased to double what it was six weeks ago.
" I believe the media has helped both to promote the loan activity in a positive way, but also it has helped to clog it."
The reports have sometimes inadvertently contributed to greater confusion and indecision on the part of the borrower, who then proceeds to shop around, placing applications with more than one borrower simultaneously, Raybould said.
A spokesman for Security Pacific National Bank reported that from Jan. 1 through March 21 this year, the bank handled 5,261 real estate (mostly refinance) loan applications totaling about $512 million for California. Of these, 1,500 loans, valued at $155 million have closed within an average 60-days.
"Delays in one form or another are just apparently inevitable at this time," he said. "For instance, last year we handled only 778 such loans from Jan. 1 through March 31, so this gives one an idea of the magnitude of the increased activity with which we have to deal.
Great Western Savings may be the exception, however.
The major nationwide real estate loan originator (with $6.7 billion in loans last year), has reported a continuing momentum for the first quarter of this year. Last year, loans originated in the first quarter totaled $809 million; that figure for the first quarter of 1986 is $1.5 billion in residential loans, all closed in less than 30 days.