Today we subbmited an offer for a home and we already heard they like the offer but its their fathers home so they want to make sure that they all agree (the main point of contact said the numbers sounded exactly what he wanted) will hear back by wednesday the 14 with a signed contract if they accept. My credit report expires on Jan 21 of 2012 and i want close before that date. The house is for sale by owner and not a short sale or foreclosure. Everything with the house looks fantastic. No pealing paint, no cracks, nothing that really needed repairs. Do you think we could if the bank orders an appraisal on the 16th, do you think we could close by the 13th or 20th of jan?
It's possible but it depends on inspections, appraisals, and underwriting. For example: I signed on a property on November 28th, Got all loan paperwork submitted by Dec 1st, had my home inspection (lender wanted it done) on Dec 3rd, negotiated fixes with the seller on Dec 6th, had my appraisal done on Dec 8th and that is where I am currently at. My lender and agent want to close by Dec 30th and at the rate we're moving it could be on Dec 23rd. If the property passed the appraisal my loan will be submitted to underwriting by Tues or Wed. Depending on what happens in Underwriting and they don't need any further information from me I can schedule to close before christmas. How fast you can get things done is not the problem. The problem is the underlying issues that may be faced such as inspection issues and underwriting issues. If your seller is determined to sell and will fix the major issues after a home inspection (often not required but is highly recommended). Then the appraisal will most likely be a breeze then off to underwriting (where credit history and financial history will be placed under a microscope). Once you get past that hurdle everything else will be a breeze. I highly recommend getting a home inspection, even though it not required because the house I chose is only 5 years old and looked good. It had some mechanical issues tucked away and an untrained eye might have missed them (like myself). You do have to pay out of pocket at the time of inspection but the fee may be minimal when compared to to how much the issues may add up to be. If the seller wants to sell they will get whatever fixed to make the sale.
Yes, I think it is possible if everything goes smooth. Good Luck!!
I signed the contract on November 4th and am still waiting to close for a few reasons. So my advice is to be patient (I hate having to give that advice) and be prepared for things to come up and stall the process. I was seriously giving myself stress headaches over this process and I am normally someone who doesn't get stressed out.
Congratulations on the acceptance of your offer!
As pointed out previously above, the closing will depend upon the underwriter, the appraiser and the inspections. Some of the funding lenders take 45 days from start to finish assuming there are no issues with any of the above. Others can close as quickly as two to three weeks. We are approaching the end of the year so many of the lenders are jammed up by people wanting to close before year's end. The fact that you scheduled your closing for the second week of Jan was a good move on your part.
Having said the above, the appraiser in an FHA loan looks at more than paint issues. They will look at a whole host of items that are of a 'health and safety' factor. Such items include windows, heat, roof condition, wood rot/termites, etc. This is done when the appraiser walks through to complete his appraisal inspection. This appraisal inspection is done in addition to your regular inspections that you order. If the appraiser discovers an item that needs correction he will list it on the appraisal report that is submitted to the lender. You will need to get a copy of your appraisal to see what, if any, conditions are outstanding. Those items need correction before your loan will be approved. Once the items are corrected, then the appraiser has to go out (for an additional fee) to reinspect the property.
It is an excellent idea to have any issues corrected prior to the first time the appraiser comes to the property as the reinspection period can add a week or even more to the process. I once had an underwriter tell me that the fascia board needed to be repainted in one spot over the door. The appraiser came out three times and the work the appraiser wanted done was not done because it was not the fascia board...it was the soffet about 8 feet away and he didn't know the difference between a soffet and fascia board! This added a month onto the closing. So get it in writing by reading the actual appraisal or have the loan officer provide a copy of the relevant page of the appraisal if they won't give you a copy of the appraisal. It makes a difference in the processing of your file. The underwriters have no idea of what your house looks like and rely on the appraiser to be their eyes to determine value and determine if the house meets minimum health and safety requirements as required by FHA.
Stay on top of your lender. Communicate with the processor and loan officer and get them the info they request right away and you should be able to close timely. Good luck!