FHA loans require a property appraisal before the loan can be approved. Learn how long this process takes and what you can do to speed it up.
Checkout this video:
The Federal Housing Administration (FHA) insures mortgages with certain lenders to help borrowers with limited means become homeowners. Borrowers must have steady employment history and demonstrate the ability to pay the mortgage. After the lender funds the loan, it is then assigned to FHA. The FHA will not insure more than 96.5 percent of the appraised value of the home, no matter how low the appraised value may be.
Your real estate agent will order the appraisal as soon as you have an accepted offer on a home. The appraiser will visit the property, taking pictures and measuring the rooms and lot size. The appraiser will also research recent sales of similar properties in order to estimate the value of your home. Once the appraisal is complete, it will be sent to your lender who will then give you a “loan estimate,” which outlines your closing costs and loan details.
The FHA does not have a minimum time frame for closing after an appraisal, but it generally takes between 30 and 45 days.
The Loan Process
The FHA loan process is one that is Author: Graciela Sholaski ongoing until your loan is paid in full. Your loan officer will work with you from the time you submit your application until the day you make your last payment. From there, the loan will be transferred to a servicing company who will collect your payments and provide customer service for the life of the loan.
The length of time it takes to close an FHA loan after appraisal varies depending on a few factors, including whether the buyer is applying for a new purchase or refinance loan, how quickly the buyer can provide all required documentation, and whether there are any issues with the property that need to be addressed. In general, it takes anywhere from 30-45 days to close an FHA loan, but this timeframe can vary depending on each individual buyer’s situation.
The Appraisal Process
The appraisal process is one of the most important steps in buying a home, but it’s often one of the most misunderstood. Here’s what you need to know about getting an FHA loan appraisal, including when to order it and how long it takes to get.
The FHA loan program requires that all homes be appraised by a licensed appraiser in order to ensure that they meet the minimum property standards set forth by the agency. Appraisers are required to physically inspect the home and report any problems that they find, as well as provide an estimated market value for the property.
In most cases, you will need to order your own appraisal when you are applying for an FHA loan. This can be done through a number of different appraisal management companies or directly through a licensed appraiser. Once ordered, it typically takes around 10 days for the appraiser to complete their inspection and provide their report.
Once you have received your appraisal, you will need to provide it to your lender in order to complete your loan application. In some cases, your lender may require that you get a second opinion on the value of the home from another appraiser before they will finalize your loan.
The entire appraisal process can take anywhere from two weeks to a month to complete, so it’s important to factor this into your timeline when you are planning on buying a home.
The Closing Process
The closing process is when the purchaser and the seller sign all of the necessary paperwork to finalize the transaction. In order for a closing to take place, both parties must agree on a purchase price, loan terms, etc. Once everything has been finalized, the closing process can take anywhere from a few days to a few weeks.
The length of time it takes to close an FHA loan after appraisal depends on a few factors:
-The buyer’s individual situation ( employment history, credit score, etc.)
-The seller’s situation ( Are they able to provide clear title? Do they need to sell any other property first? )
-How quickly the underwriter can review and approve the loan
-How quickly the appraisal can be completed
-How quickly repairs ( if necessary ) can be completed
After an FHA loan appraisal is complete, how long does it take to close on the house? It depends on a few things, including whether or not the home inspection and any repairs that need to be made are completed. If everything goes smoothly, it could be as little as two weeks. If there are problems that need to be addressed, it could take longer.