topic Re: How quickly can I close on a house? in Mortgage Loans

How quickly can I close on a house?

Anonymous — Thu, 28 Jan 2021 16:14:16 GMT

I need some advise as I find myself in a pickle.

August 2020 my brother moved out of his house and offered me his house to rent. He and his family moved to Austin and my family and I moved to the house. Fast forward to now and he would like to move back. The agreement was that I rent his home for a year and then buy his house. I filed for Bankruptcy Ch. 7 in 2019 and my discharge date was July 31st, 2019. So I was hoping to get an FHA loan August 1st this year and buy their home, as long as the price was good.

We like the home and I dont see any issues with getting a big enough loan for it. I make almost 100k and the home would be $190k. My question is, how quickly could we buy the home in August this year and is that even possible? If this is a far reach, I may just look for a rental for a few months because we technically have to be out of the house in August if we are not purchasing it.

Re: How quickly can I close on a house?

sxa001 — Thu, 28 Jan 2021 16:46:36 GMT

How quickly you can close will depend on a lot of things, the biggest is going to be having a lender who can close on time and making sure you have all your ducks in a row. It sounds like you can't apply until August 1st because of BK so you will really be trying hard to close in 30 days. It is not impossible with the right lender.

I would start talking to lenders a month or two before you apply. Understand their paperwork requirements, be upfront with them about everything so there aren't any surprises. When shopping around for a lender make sure they understand your situation.

From what I have seen on these forums the delays tend to come when there are surprises, in some cases underwriters have come back with stuff that the loan officer didn't forsee or maybe understood differently. Appraisals are taking a long time in some markets, that may be something to ask your lender, if you can pay for the appraisal and if they will use one done before you apply if it is recent you can potentially get a jump on that (I will let the experts chime in if that is possible).

Good luck!

Re: How quickly can I close on a house?

Girlzilla88 — Thu, 28 Jan 2021 18:19:03 GMT

@Anonymous Is he moving back in hopes of moving back into his house/the one you are staying in?!?!

Re: How quickly can I close on a house?

Anonymous — Thu, 28 Jan 2021 19:17:56 GMT

No, he would like me to buy the home in August.

Re: How quickly can I close on a house?

Girlzilla88 — Thu, 28 Jan 2021 20:08:07 GMT

@Anonymous I would just set up everything a month or two in advance (the finding the house and agreeing to everything on everyone's side is what really takes the longest anywhere from 1-3 months really) but since you already have the HOUSE part that would just make it easier and just look up/find someone that deals with BK's. I would plan if you can for 20% down if you can't some places will let you do 3% or 5% (whatever your state minimum is) and plan to have that and any extra funds that may be needed if they ask for an appraisal etc. ^^ But that way all is said and done BY or before August.

Re: How quickly can I close on a house?

Anonymous — Thu, 28 Jan 2021 20:30:12 GMT

Thank you for the feedback. That sounds doable to me as we should have 10% or so down. I wasnt sure if we could get all of that done beforehand so that is great news!