T the closure of a mortgage really that long?

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I just had a great welcome home, I’m a few days ago to buy. However, I just sign all mortgage documents today and the loan officer said, it takes 30 to 60 days before we schließen.Es FHA is a loan, then maybe some, but we really 60 days? What in the world do they do? Not that finally get a credit report and look at my work they just look Geschichte.Haben documents for 6 weeks? I know that sounds a bit cruel, but I’m just blown it takes so long.

8 Comments
  1. Reply
    ClarkWorld
    May 18, 2011 at 1:14 am

    Maybe it has something to with FHA because I just got a mortgage and it didn’t take but a week.

  2. Reply
    Dizzy_Lizzy
    May 18, 2011 at 2:00 am

    30 days is pretty normal, but plenty of lenders have cut staff and are looking more closely at buyer’s financial info then they would have a year or two ago so the closing process is taking longer. I think the 60 day number was just a “be prepared, this is a possibility” warning.

    Your data has to go through multiple departments so if one of those depts is backlogged, it holds up the whole process.

  3. Reply
    Nooni
    May 18, 2011 at 2:15 am

    Sounds about right,it took 7 weeks when I sold my house.

  4. Reply
    Jennifer M
    May 18, 2011 at 2:52 am

    I started my mortgage paperwork in the beginning of June and I just got underwriting approval with conditions on the 25th. I have submitted all my info and now they are questioning gift funds that I am receiving. I am applying for an FHA loan with 5% (not the FHA minimum of 3%). Maybe it has something to do with it.
    I agree that mortgage companies now are understaffed and under closer scrutiny to make sure that the loans aren’t defaulted on.
    Traditionally, people that apply for FHA loans either don’t have a 20% down payment (my case) or have a lower credit score so they usually don’t qualify for a regular loan. That fact alone makes us a higher credit risk so we are reviewed more carefully.
    Good luck to you!

  5. Reply
    kemperk
    May 18, 2011 at 3:23 am

    welcome to the world of fuzzy real estate.
    I asked that same question of
    dozens of professionals in my field and
    the answers so far come out to:

    a; 1-5 days to review the appraisal.
    b; 1-5 days to review the credit report
    c; 1-5 days to review the bank statements
    of the borrower
    d; same to review the purchase contract
    then, time off to golf, time off to make
    sure it does not look like they are rushing
    and time off to do things without scanners;
    heaven forbid they use 20th century
    technology!

    thus, it should take 1-5 days. NO ONE
    can do that because of company
    imposed power and ego trips.

    [and lastly, they must bundle the
    mortgage NOTE with others and
    sell same to new note buyers cause
    the normal note buyers were taken
    to the cleaners;
    GInnie Mae, Freddie Mac and Fannie
    Mae were the note buyers.
    [all mortgages are notes and those
    are sold]

  6. Reply
    David Beasley
    May 18, 2011 at 3:50 am

    Yes. It can take that long.

    FHA is about the ONLY way to get to 100% today, so ALL FHA underwriters are busy.

    If there are issues such as:
    1) credit problems
    2) Ameridream or other down payment assistance programs
    3) house needs repairs
    4) your loan officer doesn’t know the guidelines and/or only has one underwriting department to send your deal to (banker… NOT a broker)
    5) negotiating delays due to short sale/bank owned property

    My FHA deals are taking 4-5 weeks, because I know how to package a weak buyer. COMPENSATING FACTORS help create a good story. FHA loves a good story. These are:

    1) job stability
    2) year over year increase in income
    3) good income over obligations (DTI)
    4) paid off/down credit cards
    5) paid off collections
    6) working in the same field as education
    7) etc.

    Best of luck to you!

  7. Reply
    chatsplas@sbcglobal.net
    May 18, 2011 at 4:08 am

    FHA does take longer

    You can speed up the process by being on top of things, checking in with them once or twice a week, immediately providing them any documentation they request, etc.

    Had you been pre-approved that would have speeded up the process. Generally it can be done in 30 days. It’s a matter of geeting all the docs together, submitting to underwriting, etc.

  8. Reply
    Thor
    May 18, 2011 at 4:10 am

    Yes, that doesn’t sound all that bad. I have a property being sold to a developer that will take a least a year to close with all the work that needs to clear with the city and regulatory agencies.

    But remember, the earnest money agreement IS the contract. So you have a signed contract and barring the stated reasons for which they can back out, they are forced to close.

    Sometimes the time works in your favor. And AFTER the offer is accepted don’t you have inspections, contingencies to work out, and such? I thought most of that time is for YOU since you aren’t the one getting the money. It is there to protect the money you are paying not to prevent you from taking possession.

    Good Luck.

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