An FHA Mortgage loan is the most common type of mortgage for home purchasers to use these days. Getting an FHA Loan is also one of the most frustrating experiences for a home buyer to endure. It makes shopping for the home, negotiating the price, and the home inspection seem easy for most people.
After taking a quick survey and finding that this was the most frustrating part of the home buying process for most buyers, we decided to put together this little FHA Mortgage Timeline that would help buyers understand the process a little better.
- Day 1 - Loan application over the phone, pull credit, review loan options.
- Day 2 - Meet client, collect initial paper work, turn in file to operations. (If it fits everyone schedule!).
- Day 3 - Operations scrubs file for missing items, signatures ect. Orders title, appraisal file goes to processor (if we can order appraisal due to inspection not being complete, once ordered appraisal are taking 10-14 days).
- Day 4 - Processor talks with client to collect any missing or added documents. Needed ASAP. Processor usually has file a 3-6 days depending on how fast client returns items needed.
- Day 5-9 - File goes in line to be underwritten as soon as file is complete. Underwriting time is 48-72hrs.
- Day 10-13 - Receive conditional loan approval, call client with list of conditions.
- Day 13-16 - Client returns all loan condition items (hopefully).
- Day 17 - Possibly still waiting for appraisal to be done & trying to get title to make corrections that are needed.
- Day 17-21 - Possibly still waiting on borrower to send in all conditions.
- Day 22 - Appraisal is completed.
- Day 23 - Hopefully we have every thing we need to re-submit the file to underwriting with appraisal and loan conditions. 48-72 hrs.
- Days 26 - Ask appraiser to make any needed corrections on appraisal.
- Day 27 - Hopefully appraisal repairs, if necessary, are in.
- Day 28 - File is cleared to close. Once that happens the file is sent to get the PMI certification. Usually takes 3-8 days.
- Day 32 - PMI certification comes in then we are clear to close. Schedule with title company, docs & wires are ordered 48-72hrs.
- Day 35 - Close