It depends in large part upon what type of property you are buying. If it's a condo, if the project isn't already FHA approved that can take a long time. Whether condo or not, 17 days is tight - talk with your lender, they will give you the correct timelines.
Lance King/Owner-Managing Broker
When you have settled on a House; the Lender plugs that house into the equation and gives you a GFE with applicable numbers. If you agree, then the Lender gives you a committment which you take to the Escrow Company and release the Loan Contingency.
Our company does a tremendous amount of FHA business so our systems are set up to work along the same timeline as the transaction.
Good luck in your purchase and if I can be of further help, please just let me know.
Wells Fargo can usually remove the loan contingency in 14 days, where B of A is usually 17-21 days.
I agree, it's best to be safe than sorry when it comes to waiting until your loan funds to remove your loan contingency and that sounds all great and rosey, but it's not the real world when you are purchasing here locally.
I don't think you will be competitive or have much leverage when making offers if you were to ask for a loan contingency until the close of escrow. Maybe it's different for the agents who are out of state or in different counties, but not not here on the Peninsula.
Lastly, talk with your loan professional and see what they have to say. That's who you need to be listen to. Also, make sure to have a paper trail and ask your questions via email and when it comes time for you to remove your loan contingency, ask your lender to put it in writing.
If you have any questions or need a referral, feel free to ask.
If a loan contingency is being removed it should mean the loan is clear to close.
This doesn't mean it can't be done in less time, if there is an urgent need but this is a typical (and reasonble) time frame we use in our contracts.