How long does it take to close on an FHA home loan?
The contract has it down from one month from when we signed but it has been a week and we have not heard anything. We turned in all kinds of paper work; bank statement, car payment history, landlord letter, pay stubs. A check to a title company that is in limbo until closing. I am getting nervous about all of this. When the loan officer told me the underwriter approved us over a month ago we started looking for a house. Now that they have the contract I don't know what to expect. So far only nightmares.
- Anonymous1 decade agoFavourite answer
I'm a loan officer, and I will be able to answer this for you. FHA loans are government loans. The length of time it'll take to close an FHA loan depends on what type of relationship your lender, or broker, has with FHA. If they are a correspondent FHA lender, then it'll take an average of 3 weeks. It could take up to as long as 3 months if not a correspondent. My suggestion is to contact your loan officer, and hound him. Get answers, and if you don't get it from him, go elsewhere.
- Anonymous1 decade ago
A bit better communicating from your loan officer would make things a bit easier for you.
Right about now your loan officer is probably awaiting the appraisal so that they can see if FHA has any repair requirements that your Realtor will have to go back to the seller's Realtor to have completed.
Your loan office is probably also waiting for the preliminary title report to make certain that the title can be cleared so that you can have the property transferred to you cleanly.
Once those two items are in you may have to supply an updated paycheck stub and bank statement but then you should be close to closing.
The appraisal and preliminary title report take a couple of weeks (if your market is very hot, a bit longer).
Call your loan officer and ask for regular status updates. Ask when the appraisal is expected and request you be called when it is received. Ask also to be called when the prelim comes in. Tell your loan officer that this is all new to you so you are nervous and would appreciate it if you could speak at least twice a week, more often as there is news to be communicated.
Don't be scared, some things are out of your loan officer's control, like how long it takes to get these items from his vendors. It sounds like you've got your credit package approved, now they just need to clear the stuff with the property. You should be fine.
Enjoy your new home.Source(s): 20+ years as a direct mortgage lender
- 1 decade ago
FHA has loosened alot of it's guidelines, thus making it easier for approval and shorter closing times. You are generally not going to hear anything for the first week anyways because the underwriter is reviewing all of your documents to make sure they support what is on your application. When you are pre-approved, it does not go in front of an underwriter. It is typically done by the information put on your application and ran through an electronic underwriting system, then the paperwork goes to a "real person" underwriter to confirm the info is accurate. An underwriter will not review applications on purchases until a contract is put in place. I would only be nervous that your loan officer isn't explaining this to you!!!Source(s): Mortgage Consultant & Realtor
- 1 decade ago
All the evidence you submit is to pre-qualify you. The approved comes after you have an offer accepted. underwriter approved transaction only if they have purchase contract accepted. After it may take 1 month to close.
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- carly sueLv 51 decade ago
if you were preapproved and if you have all of your paper work turned in and you get all required inspections, appraisal done you should be able to close on your closing date. do you have a realtor? they normaly take care of pretty much everything for you- they have your back so to speak. don't worry