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Question by reni768: Is there a time frame on closing on an FHA mortgage loan?
I am in the process of buying a house and I know the lender said she had a deadline on completing the paperwork. She got the approval on Friday and says we can close this coming week though we have to come up with $ 3800 down. I have about 1/2 of that and I was wondering is there a time limit on an FHA loan on when you have to close or can our closing be pushed back a week or two for me to get the rest of the down payment??
We have not locked in a rate. My realtor is involved. I dont want my rate to change b/c we got a good rate. I may just have to go ahead and close this week. The money is part that I have saved, medicine some my dad has given me and my sister is going to allow me to borrow some if needed. I guess I could say that money is a gift from her and me & her know between ourselves that I am paying her back!
Best answer:
Answer by Dale … Your Maryland Net Realtor
Part of the “deadline” for your loan will be whatever lock there is … the amount of time that the interest rate you were quoted will remain in place. Normally lenders don’t lock you in at a rate for too long … possibly up to 30 days … because the rates change so quickly.
Possibly the thing that would be more important than what the lender says is what the contract to purchase the home has as a settlement deadline. If you are required under the contract to settle on or before “October 6” and you don’t do it, drug the contract could be declared null and void by the sellers and you could theoretically lose your earnest money deposit. You should verify your settlement date and make sure that your Realtor works with the sellers’ agent extend the settlement deadline if possible.
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While you are gathering money for your downpayment BE SURE to keep a papertrail of where the money is going to come from, because the underwriter will want evidence that it is either yours or has been gifted and NOT borrowed.
It’s not a question for the bank, it’s a question for the sellers because they can hold you in violation of the contract if you don’t close on time, and if your rate has been locked on the loan, you can lose that as well…so you also need to be communicating with your loan officer.
Where is your Realtor? They should be helping you with all of this!
PS: The other poster that stated if you don’t close on time that your contract is null and void is incorrect. You would have to have included a “time is of the essence” clause in the contract (which Realtors on both sides try to avoid). No seller is going to flush away a buyer and start the process over (which can take another 4 to 6 weeks) when they may be a few days away from closing with a currently approved buyer.
No SMART Realtor is going to advise that.