Need Advice - Offer, Acceptance, Approval, & Closing Timeline

[Its_Me]

i will be purchasing my first home this fall and I have a question about the whole timing of it. My current lease is up October 31 and it is highly unlikely our current landlord will work with us on an extension (we had to escrow rent and take him to court - we won - he is a jerk as well).

I've met with a Realtor so that part is done. I applied for an FHA insured loan through the credit union 2 weeks ago. I sent all my financial docs and signed a ton of disclosures. My LO said she will get everything to the UW this week and I should get a preapproval by the end of the week. The loan info was entered and downgraded to a refer which I already knew would happen with my CH13 discharged <12 months ago. Once I go into contract, the LO will update anything she needs to. 

My question is, how soon after going into contract should I reasonably expect the closing to be scheduled? I would prefer to close in September so I am not paying rent and a house payment for October but I could close in October too as long as I get possession by the end of the month. My rent is a little more than the house payment will be and I can't swing both. I don't want to put an offer in next week because I don't think a seller will want to wait until September to close. Is it reasonable to put in the contract to close in 60 days?

Thanks in advance!

[StartingOver10]

Part of your offer is the closing date. Some sellers want 60 days to find a place to move to so putting in an offer with a 60 day close works for those sellers.
On the other hand don't box yourself in too tightly. Clising in Sept means your first payment is due Nov 1st. Allow yourself time to move in and clean up the old place and deliver it without rushing yourself

[Anonymous]

I don't know where you are (Ohio, maybe...? Can't remember). I'm in South Carolina and 6 weeks is typical from contract to close. Might be different up there. Seller may not go for a longer timeframe. Or you might find one who will. Also, your lender will not lock your rate that far out either. My lock was only good for 45 days.

[Its_Me]

Thank you SO10! It seems like most of the homes I look at online are already empty but I guess all we can do is put it on the offer and see what happens.

[Its_Me]

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@Anonymous wrote:

I don't know where you are (Ohio, maybe...? Can't remember). I'm in South Carolina and 6 weeks is typical from contract to close. Might be different up there. Seller may not go for a longer timeframe. Or you might find one who will. Also, your lender will not lock your rate that far out either. My lock was only good for 45 days.

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Yes, I'm in Ohio. I'll have to check on locking the rate. I think I read on the CU's website that you can lock up to 90 days but I'm not 100% sure on that. So with a 6 to 8 week time frame from contract to close, I'm looking at beginning of July to end of July. 

Thanks!

[StartingOver10]

Remember the longer term you lock, the more it will cost you to lock.

[Its_Me]

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@StartingOver10 wrote:

Remember the longer term you lock, the more it will cost you to lock.

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What is the typical cost to lock? Is it worth it?

[Anonymous]

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@Its_Me wrote:

Thank you SO10! It seems like most of the homes I look at online are already empty but I guess all we can do is put it on the offer and see what happens.

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Empty houses can be a bit difficult - sellers typically want to close these ASAP in order to avoid making additional mortgage payments on a house they are not living in. A lot of empties are foreclosures owned by a bank and dealing with a bank owned property can be a PITA. I found the banks slow to respond, not willing to make repairs, not willing to pay closing costs, and not willing to negotiate much on purchase price. I never got far enough into the process with them to have any experience with how they respond to requests for postponed closing dates. Be prepared for some frustration if you're dealing with a bank owned property. One would think they'd be eager to get them off their hands, but not so much.

[StartingOver10]

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@Its_Me wrote:

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@StartingOver10 wrote:

Remember the longer term you lock, the more it will cost you to lock.

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What is the typical cost to lock? Is it worth it?

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Your LO has to tell you the fees - it is market driven.

[Its_Me]

Good to know! I'll have to ask about cost.