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Bterrell, Home Buyer in Texas

How long does it take to know if your approved for an FHA loan?

Asked by Bterrell, Texas Thu Aug 7, 2008

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11
As Lynne said, it should be quick if your circumstances aren't too complex and you have access to all of the required documentation. It shouldn't take too long - one or two business days.

It can be a good idea to get approved with more than one lender - it can force competition between the lenders for your business. Good luck!

Garreth
3 votes Thank Flag Link Thu Aug 7, 2008
Varies by lender....
A few days to a few weeks depending on the ompany.
If it is taking a long time, that is NOT an indication that there is a problem though.... Just that some lenders are backlogged with Gov't loans right now.
I recently got a deal because Wells Fargo couldn't close for 3+ weeks. We got it done in ten days.
I am sure that you will be able to find another lender if this is taking too long for you.
3 votes Thank Flag Link Thu Aug 7, 2008
TE has some good points. In my experiance right now my the average time it takes me to close a FHA loan is about 25 days. As far as underwriting time goes we are getting full approvals in less than a week. usually 3 days. We have very strong relationships with our FHA lenders due to our volume. If your loan officer truely knows how to close FHA loans its a awesome experiance and is just a fast in most cases as a traditional loan. The truth is very few people have experiance or have taken the time to educate themselves on FHA deals. This has resulted in deals atking 30-60 days to close if at all because they keep having to go back and correct things or provide more infomation to the lender. If you have it down to a science the turn around is fast. Good luck!!
2 votes Thank Flag Link Fri Aug 15, 2008
Approved is a much stronger word than qualified and requires passing through underwriting to get it. Approved requires verification of employment, verification of monies on deposit, verification of assets, and the expected credit history review. No, it is not done in a couple of days, unless you have sterling credit and your employer, your banks and so on respond immediately to verification requests.
These days FHA processing times to get from completed application to a package (without a subject property) are running 15 to 28 days. It is inordinately long. Some lenders are faster, but the largest lender Countrywide, now owned by Bank of America, is double-checking everything by hand. It takes much longer now, actually since about March.
The pre-approval package does not include the subject property you are trying to mortgage. So, when that appraisal is included you will have another few days, that might occur simultaneously with other verifications or might be added in serially. Get a pre-approval and come back with the property for appraisal later to be approved. It's fastest.
The shortest most lenders are doing right now is about 2 weeks, most 4 weeks for approval.
Pre-qualified is not as strong as pre-approved and does not require verifications to get a pre-qual letter. FHA lenders are pretty well snowed under and will get worse. The 6-day close is gone, for now.
Web Reference: http://www.Mortgages-TX.com
2 votes Thank Flag Link Fri Aug 8, 2008
The first step is to get a FHA scorecard approve eligible. What this means is that your loan and credit were run through a lenders desktop underwriting system that is also dictated by FHA. To do this the lender would need your credit and income info as well as the details of the loan. Rate,loan amount etc..
FHA does not require assets unless you are borderline for approval then it can be the deciding factor.

As far as shopping lenders that should be done before you get into the loan process. Level of service is what seperates us do you want Kmart service or Nordstroms. By finding someone dedicated to you and that shows you open and honest communication you will get a great loan for you. Make sure they are directly approved with hud and are no co- brokering the deal which is illegal. Ask if they are full eagle or mini eagle approved, if they dont know the answer move on. I hope this helps
2 votes Thank Flag Link Thu Aug 7, 2008
A good loan officer can give me the heads-up in a few minutes. Getting a full blown approval usually takes them a few days if the client has all the necessary documentation. I will recommend more then one loan officer to my clients but once they pick the company I would want them to be loyal.

Carol Ann Pease, ABR, CRB, CRS, e-PRO, GRI
2 votes Thank Flag Link Thu Aug 7, 2008
You should go with the loan officer that you trust and inspires you confidence! Follow the great advice that T.E. and Nick gave you. The more educated you are of the process the better off you'll be. Good Luck
1 vote Thank Flag Link Wed Aug 13, 2008
I agree with TE Sumner and Nick Solis. Their answers are both good advice.
1 vote Thank Flag Link Fri Aug 8, 2008
B,
Under normal circumstances, it should not take more then a couple of days for your initial approval.
1 vote Thank Flag Link Fri Aug 8, 2008
If you have bank statements, tax returns and etc, most likely approx. 24 - 48 hours.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
1 vote Thank Flag Link Thu Aug 7, 2008
I am in NC and not Texas but with an FHA loan the requirements should be the same. I have a lender that can get FHA approval in 48 hrs. FHA guidlines are very specific, if the lender gets all the appropriate paper work in order then the approval process should be relatively short. If your lender tells you it could take weeks, you might want to switch lenders. Check with several lenders with the same question before you choose who you work with.
1 vote Thank Flag Link Thu Aug 7, 2008
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