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I got preapproved for a mortgage this week...(for those who have been following the ongoing housing saga of LibrarySue, I still haven't found a rental but I found a tiny house I can afford to buy) Anyway, the mortgage broker said that if I see the house on June 7 when I am in town and make an offer on it then, then can get me into the house by July 1.
Assuming the seller can move out by then, is that really possible?
It can be done. My husband and I put an offer on a home the first week of December back in 2009 and closed on December 30. We had all our ducks in a row, no surprises. It can done. Do your homework, keep on top of the lender, and have everything written. Good luck!
Getting pre-approved would be a great indicator, .... if you went with that company for your actual mortgage. When I got my house many years ago, and also when I was shopping a couple of years ago, I got pre-approved by a mega-bank, but never even considered using them for the actual mortgage as they were way high.
I had heard that loans go through a much tighter process than in the years past, but I don't know if that takes more time, or if the numbers are just less forgiving. Ask your showing agent, they should know the current average and best times. And if I were you, I'd be using a mortgage agent, who would search all the options and get me the best rate for the style of loan I wanted. That agent would also certainly have a good feel for times.
Also, I'd not worry about the current owner moving out. just add a clause in your Purchase and Sales Agreement:
For every calendar day past the closing that the seller remains in the property, they are to reimburse you for your additional costs of living at (say) $200/day, paid out of an $2,800 (2 weeks) escrow fund that they have to provide at the closing.
[Get your buyers agent and a lawyer to suggest actual wording].
That gives them an incentive to get out in time, plus since it's in the form of an expense reimbursement paid out of an escrow, it shouldn't effect the selling cost (and therefore taxes, valuation, etc - all of which are best left engraved in stone during the closing).
And here are some standard reminders:
Use a buyers agent.
Make sure you use a licensed House Inspector.
Make sure you get Buyers Mortgage Insurance.
Make sure you get Title Insurance.
and most importantly of all, on the day of closing, only what is in writing is binding, so ignore everything anyone has said and read the fine print. When I bought my house I asked the Seller Agent to send me an advance copy several days earlier, of EVERY document I'd be reviewing and signing on the day of closing. Then on closing, I still read every line, but I'd waded through it all before.
here is what you need for the loan, get this done before you go into the bank or credit union.
3 years W2-s
last 3 months of pay stubs maybe more.
last 3 months of bank statements maybe more. (this includes savings, and mutual funds and other assets)
They will need to call your employer to confirm employment.
They will run credit check.
You will need assets to cover the closing costs and most importantly to cover the insurance for the first year of the mortgage. Also if you want to save on the PMI insurance make sure you have 20% down otherwise they will tack on that $100-$150 or so onto the bill each month.
When I was going through the home buying process, I got the impression that at least as far as mortgages go, the bank doesn't even look at your paperwork until 2 days before the closing anyway. We had a 40-day closing, and we got all of our application materials to the bank a few days after we had our offer accepted (we were already pre-approved by this bank).
After an initial two-week wait, I spent every day on the phone with the bank asking my application status. It only changed from "received" to "approved" the day before the closing. I was sweating bullets the whole time. And no, it had nothing to do with a problem reviewing the application-- the underwriter herself told me that it took an hour to review and approve.
If the banker collects ALL your information and records for the preapproval, and runs them past his in-house underwriter, and you provide all further requested personal financial information to satisfy the underwriter regarding your credit-worthiness, all that is needed is contract, appraisal, and title work.
The reason the process stretches out to 11 days is the 10 day review put in by the Feds to slow down the process.
Now, it is difficult to recommend or push an 11 day closing as the answer for all buyers. 11 days would entail rushing inspections and repairs for many people, but the loan process can be completed faster than many people think, given an aggressive lender and responsive principals.
I cyphered it out, longhand, and, at least in a leap year, 11 days is faster than 3 weeks.....
Hahaha! I missed the number of days in your previous post.
That IS fast.
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