Home Buying in Setauket>Question Details

Zack Harris, Home Buyer in Lake Grove, NY

How long does it typically take to close on a FHA mortgage?

Asked by Zack Harris, Lake Grove, NY Mon Feb 25, 2013

Considering that I have over a 660 credit score and about $118k income combined with my wife. I also have a 5% down payment and closing costs.

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There are several things that would determine the turn time to close on a FHA loan. If the house you're purchasing is a short sale, it can easily take several months, depending on a several different things. If you're purchasing a traditional sale, an FHA mortgage should take about 3-6 weeks.

You want to be prepared with your 2011 & 2011 tax returns along with W-2 forms, most recent pay stubs covering 30 days (so if you get paid weekly, you'll need the last 4), 2 recent bank statements to all accounts, copies of your picture ID & social security card, along with any other documentation your lender will require. The quicker you can turn over what's needed from you, the quicker your lender should be able to process your loan.

If you're in need of a Loan Officer, I'm always available to meet face-to-face. Good luck!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
5 votes Thank Flag Link Mon Feb 25, 2013
Thanks
Flag Mon Feb 25, 2013
It should take no more than 30 days to get your FHA mortgage cleared to close. Once your file is cleared it all depends on the contract of sale you signed as to when the closing date will be. There have been many times when we have been cleared to close in less than 30 days but have to wait another 30 or 60 days to close due to the seller. So step one is to review the contract of sale and see when the actual closing date can be scheduled.

Secondly make sure that all the required paperwork needed for your application is ready at the time you sign your mortgage application papers. You will need 30 day pay stubs; last 2 years 1040’s and W-2’s along with all schedules of your tax returns; last 2 months bank statements; investment statements; and retirement account statements. Missing pages will hold up your file for final clearance, so make sure to include all pages of the statement (pages 1-4) even if some of the pages are blank.

Lastly make sure that your attorney orders the title right away and that you have your homeowner’s insurance binder and invoice ready for the lender to review. Delays in getting these items will also slow down your closing process.

The key to a fast and easy closing is to be prepared in advance and find a loan officer with a streamline application process.
1 vote Thank Flag Link Tue Oct 29, 2013
Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously, therefore visit with any licensed loan officer; he/she can accurately answer any questions as they apply to you. FHA loans can close as quickly as a traditional sale, provided all the necessary paperwork is in order; much will depend on your loan officer/lender...
1 vote Thank Flag Link Mon Feb 25, 2013
Much will depend on the lender you work with. FHA loans are offered by nearly all lenders. If you work with one of the big banks (Wells Fargo, Suntrust, BoA, Chase etc) regardless of what they tell you you should be prepared for 8 weeks and a lot more aggravation than is necessary. All of these banks are overlaying internal requirements not mandated by the Government. You would be wise to avoid working with any of them. If you work with a smaller bank a credit union or a mortgage broker you should be able to close in between 5-6 weeks from the time you have a signed contract and submit your formal mortgage application. Do not waste your time on a short sale, you'll be tied up for between 3-6 months, will waste money unnecessarily and will likely not get to buy the property anyway as the Seller has at best a 50-50 chance of being approved. Do find yourself a good experienced Realtor to work with you as a Buyer Broker. I've attached a link below on what to look for and how to interview Realtors.

Best of luck and happy house hunting.
1 vote Thank Flag Link Mon Feb 25, 2013
Thanks Larry, just to reiterate your comments above--it truly does depend on the lender. Obtaining a FHA case number and a FHA appraisal are the main differences (aside from guidelines themselves) in process. We are turning FHA purchases/refinances around in 3-4 weeks. I've been on the 'big bank' side of things in the past and a 6-8 week turn time seems accurate for them. Good luck!
Flag Mon Feb 25, 2013
are you breaking a lease if you purchase a home before the lease is over?
0 votes Thank Flag Link Sat Apr 19, 2014
how long does it generally take to close on a fha mortgage
0 votes Thank Flag Link Sat Apr 19, 2014
It can be difficult to calculate an exact time to close as there are numerous factors. If this is a standard purchase and you're working with a good loan officer who can identify potential delays ahead of time then there's no reason why you can't close within 3-4 weeks. If there's any way I can be of further assistance please don't hesitate contacting me directly.


Kindest regards,


Paul Marzolla
Loan Officer
(201) 957-6768
pmarzolla@unvmortgage.om
0 votes Thank Flag Link Mon Feb 25, 2013
Typically, in a traditional sale, as mentioned by Javier Meneses and Larry Tollen, you should be able to close within 4-6 weeks. A competent loan officer with broad resources as to which lender to use to close in a timely manner is paramount.

Good Luck and Happy House Hunting.
0 votes Thank Flag Link Mon Feb 25, 2013
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