Conditional Approval; how long until closing?
We have a conditional approval with an FHA loan. The only conditions are 1) provide the insurance information, and 2) have the signed by the seller FHA Amendatory Clause. That's it! Should have both of those with a day or two...how long, estimated, should we expect to wait for a closing date?
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Hi Kenneth,
As a rule of thumb, a couple days, then when the bank is ready they need to give you a three days cool off period after you have signed the final documents.
However, remember, everything thing is at the discretion of the lender and its underwritter but normally you should be very close, be patient.
Best,
Email
As a rule of thumb, a couple days, then when the bank is ready they need to give you a three days cool off period after you have signed the final documents.
However, remember, everything thing is at the discretion of the lender and its underwritter but normally you should be very close, be patient.
Best,
Kenneth,
First question, are you purchasing a condo or single-family?
Second question, are you represented by a Realtor®?
Thanks,
Sibel
First question, are you purchasing a condo or single-family?
Second question, are you represented by a Realtor®?
Thanks,
Sibel
Congratulations Kenneth you are almost there! Your lender should be able to give you a good timeline to closing day. It is very important that you and your realtor® stay in close communication with your lender in case there are any small hurdles or additional paperwork that might need to be taken care of before closing day. Best of luck!
Krystal Huhn
Stanfield Properties
807 S Friendswood Dr
Friendswood,TX 77546
Krystal Huhn
Stanfield Properties
807 S Friendswood Dr
Friendswood,TX 77546
Hi Kenneth,
Congrats on the purchase of your home!!
Once you receive conditional approval with only a couple, very achievable conditions, you're almost there! Your best bet is to reach out to your lender and REALTOR® as each lender's timelines are different. I have in house lenders that underwrite (in house) in less than 24 hours, while I've worked with big bank lenders that take at least 48 hours to underwrite and have third party underwriters (this can take longer).
The insurance portion should be pretty quick, although this is dependent on the quickness with which your insurance agent sends the insurance binder to the lender. You and your REALTOR® should stay on top of your insurance agent to get this done! The FHA Clause has to be signed by all parties in the transaction, so it's just a matter of how quickly everyone works together. Your REALTOR® should work to send this to the Seller's side of the transaction and get this back to the lender quickly.
Once you have these conditions, the lender will submit back to underwriting for final approval. Once final approval is received, you'll receive your Clear to Close (CTC) and the lender will send out your final disclosures, which you MUST acknowledge/sign IMMEDIATELY as this acknowledgement starts the 3 day window for scheduling closing (change in lending as of 10/2015). This timeline toward to end is huge and your REALTOR® should be working behind the scenes with your lender and title to make all this happen smoothly and ON TIME.
Hope this helps!!
Darby Grimmett / KW / Email / 936-827-9217
Congrats on the purchase of your home!!
Once you receive conditional approval with only a couple, very achievable conditions, you're almost there! Your best bet is to reach out to your lender and REALTOR® as each lender's timelines are different. I have in house lenders that underwrite (in house) in less than 24 hours, while I've worked with big bank lenders that take at least 48 hours to underwrite and have third party underwriters (this can take longer).
The insurance portion should be pretty quick, although this is dependent on the quickness with which your insurance agent sends the insurance binder to the lender. You and your REALTOR® should stay on top of your insurance agent to get this done! The FHA Clause has to be signed by all parties in the transaction, so it's just a matter of how quickly everyone works together. Your REALTOR® should work to send this to the Seller's side of the transaction and get this back to the lender quickly.
Once you have these conditions, the lender will submit back to underwriting for final approval. Once final approval is received, you'll receive your Clear to Close (CTC) and the lender will send out your final disclosures, which you MUST acknowledge/sign IMMEDIATELY as this acknowledgement starts the 3 day window for scheduling closing (change in lending as of 10/2015). This timeline toward to end is huge and your REALTOR® should be working behind the scenes with your lender and title to make all this happen smoothly and ON TIME.
Hope this helps!!
Darby Grimmett / KW / Email / 936-827-9217
For the most accurate answer I would ask your lender or your Realtor®. Each lender's inner workings are different and not knowing the specifics of your particular transaction it would be hard to estimate. For instance I have a client who has a conditional approval (in fact full approval on his loan), but we are waiting for the appraiser to submit the appraisal report. Until it is received we cannot calculate an exact closing date. The key phrase is "clear to close" this means the lender has everything they need from all parties and are ready to communicate with the title company and can begin to prepare documents to send over. Because of lending guidelines, you will also be providing a closing disclosure and you must acknowledge receipt 3 business days prior to the closing date. This is mandated and cannot be rushed. Saturdays count but Sundays and holidays do not. Once you have clear to close you should be able to close within 3 to 5 days. Again, talk with your lender and your Realtor® - since they know the specifics they are your best source of information.
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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