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Wife and I are purchasing a home using the USDA loan (0 down payment) and getting the seller to cover the closing costs in the form of a concession. We will be putting about 6k in an escrow account prior to closing as a "good faith" kinda thing.
When would we be getting the 6k back, at the closing or is there usually a long wait after the fact to receive it?
You should receive the funds back when the loan funds, and/or when the Deed is Recorded. Depending on what state the property is in (as in which of the United States, not the condition), and the type of lender you are using, this could be any time from when you sign the closing docs (a few minutes after, if your lender "Table Funds" without heady doc review needs), OR a day (or a few) after you sign docs, when the new Deed is Recorded.
Ex.: If you are buying in CA, and sign docs on a Friday, they would likely record Monday or Tuesday of the following week. You'd have to navigate weekends and Federal Holidays, along with the prospective workloads of Title Companies and Lenders' Funding departments, so it's really tough to be exact here, and i'm trying hard not to set false expectations.
While this would be a good question for your Loan Officer, it might also be wise to ask your Escrow Officer/Title Rep, or Closing Attorney. Quite an array of differences.
What state is the property in, and give us a hint as to who your Lender is, and maybe we can be more specific.
You should receive the funds back when the loan funds. Depending on what state the property is in (as in which of the United States, not the condition), and the type of lender you are using, this could be any time from when you sign the closing docs (a few minutes after, if your lender "Table Funds" without heady doc review needs), OR a day or a few after you sign docs, when the transaction is Recorded. (ex.: If you are buying in CA, and sign docs on a Friday, they would likely record Monday or Tuesday of the following week).
While this would be a good question for your Loan Officer, it might also be wise to ask your Escrow Officer/Title Rep, or Closing Attorney. Quite an array of differences.
What state is the property in, and give us a hint as to who your Lender is, and maybe we can be more specific.
Thanks for the Info...State is NJ and loan person works for Fairway Independent Mortgage Corp, so I'm assuming they will have the mortgage.
Bank on 1-2 business days after you sign closing documents (of course, factoring in the closing data per contract). This is not intended as a negative comment about Fairway. But NJ is an "Attorney State," meaning attorney review of docs, meaning everything takes longer, and you likely will have to wait until Recording has taken place.
Maybe also ask Fairway what they need in order to release funds, ie., the full, original doc package, or a few key, faxed docs.
Bank on 1-2 business days after you sign closing documents (of course, factoring in the closing data per contract). This is not intended as a negative comment about Fairway. But NJ is an "Attorney State," meaning attorney review of docs, meaning everything takes longer, and you likely will have to wait until Recording has taken place.
Maybe also ask Fairway what they need in order to release funds, ie., the full, original doc package, or a few key, faxed docs.
Got ya...thanks a bunch for the information!!
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