If you have a commitment from the lender, then they cannot just change their mind unless they found something wrong with your application (i.e. undisclosed credits, wrong information on income source, different source of down payment as what was presented initially) . If you do not have a written commitment from the lender and you only have a verbal commitment, it may be difficult to bring them to court. The way we do pre-approval is like getting a real mortgage - submit all relevant documents up front and get the lender give us a mortgage commitment good for x-days. This assumes that your financial condition would be the same or better when the mortgage application with a property is submitted.

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We put a bid on a foreclosed home early this week and we found out today our offer has been accepted. we know next we have to qualify with the seller's bank as well as our own (we already have 5 pre-qual letters, all sent with our offer) how long can we approximate it will take for our credit to be ran and for us to get to the next step to make this home ours?

For a foreclosure, the bank will want as quick an escrow as possible. And the quickest possible escrow is about 30 days, the limit being the completion of the title report and the financing. I would not expect the escrow to go out more than 45 days at the most, unless you have problems with obtaining financing (the underwriters can slow things down a bit sometimes).

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Our offer was accepted on feb 14th. paperwork was sent to the fha underwriter on feb 20th. closing date was supposed to be march 20th. today is march 30th. we have a new closing date for april 2nd. we have not had a final determination concerning the loan. and there is no way that we can close on the 2nd. we were pre-approved before we went house hunting. our loan is for 15% less than what we qualified for. basically what is holding the loan up is the verification of income. how long do they take to get verification of income? how long can the fha take to make a final determination on a mortgage loan. remember that the home owners are also waiting. i have spoken with the loan officer at the bank and the bank's underwriter several times by phone and e-mail over the last 6 weeks.

You're still not closed, I see. There is absolutely no law about how long the underwriting can take. Your loan officer seems to be an absolute idiot though. He had 6 weeks to get your income verification. That can take anywhere from 1-5 days, depending on what you are able to provide, and how quickly your employer returns our verification request documents. He had plenty of time, and obviously didn't do it. I would be pushing them to pay for any and all expenses you've incurred by this delay. And I'd make them drop their fees substantially to make up for your time and trouble. I am assuming you are dealing with a broker, one that does not have Direct Endorsement from HUD. So they're at the mercy of their investor's underwriters, as far as timing goes. And most brokers don't have a clue about how to properly handle FHA loans at all. Sorry to hear you're still having trouble.

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I am in the process of buying a house and had been pre-qualified for a loan/mortgage. after we found a house, had an offer accepted and had the home inspection, we had gone back to the bank to apply for the loan. we got our loan documents in the mail a week after that. so this friday, it will have been ten business days. when should we expect to be approved? i know once it is approved, it takes another 4 to 6 weeks for closing, that would be a total of about 3 months from the accepted offer date, is this normal?

It's normal for loans to take 120 days to close. However, you have a situation that isn't normal. It should be 10 minutes after you talk to the loan officier for the loan application to be in your email inbox. Not a week for snail mail (what kind of snail mail were they using?? I can send a letter from LA to Raleigh, NC and it gets there in 2-3 days TOPS). You need to contact friends and family in your area for the recommendation of another mortgage broker . Also, ask your realtor. You don't need to chose which lender you are going to go with until the appraisal. But you have to get this train on the right tracks or it's going to be July and you are still waiting...

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He found a house he wanted and made an offer, the offer was accepted and he put ernest money down, it passed the va inspection and all the other inspections and everything was going good and two weeks before closing all of a sudden he was told he was no longer qualified for the loan and lost the house. then a few days later the house is back on the market $10, 000 cheamer and it was baught by a real estate agent that was looking at it when my son was. the guy that was doing his loan no longer answers the phone and no one will say why he was denied the loan after being pre approved. and his credit score went down because the guy doing the loan checked his credit rating like 5 times in 2 months which made it drop...somethings not right about all this and i want to know if anything can be done. legally....

Did your son do anything to his credit? You get your credit checked twice. Once when you get pre-approved and once before the sale. Did your son run up credit card debt, and not pay in full that month? This could have seriously hurt his credit. Was he late on any bills? Did he open any new credit cards? The inquiry for a mortgage is extremely minor - only 1 or 2 points. And all inquries done of similar nature are grouped as one to allow a customer to shop around. Also mortgage companies don't focus on scores - they view reports in detail. Something else your son did plummeted his credit score. Talk to him, see what he did...

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My husband and i are looking to purchase our first home in colorado springs and we would love to do this by nov 30th. is that a reasonable amount of time if we begin house hunting sept 15th? i have been surfing real estate in the area for months and have a general idea of what home values are in the neighborhoods we are looking at. there seem to be plenty of properties up for sale in the area at the moment. i don't want to be too rushed and end up making a huge mistake but the tax credit would really help as we are moving from overseas and need to buy a car as well as a home when we arrive. the $8000 back would allow us to find a small used car without having to dip into our emergency funds. we have already been pre- approved and don't have to worry about selling a home if the offer gets accepted. my biggest worry is that because we are looking to buy an older home and fixing it up ourselves that it will be more difficult to finance. we are looking for something we can clean up and make into a healthy energy efficient home. but if the property has a few "blemishes" will it take too long to close? also what point in the buying process do you have to be in by nov 30th to qualify for the tax credit?

I have to agree.. you should probably get moving sooner than later... If you don't want to rush in to buying a home that you really don't want. You must CLOSE by end of business on Nov 30th. The fact you are already approved, will speed up the process later. Do you have your down payment and closing costs available? You said you are moving from oversees, do you have your bank statements, paychecks, employment history, old tax returns etc, somewhere that is easily accessible in the move? And like the previous person said, with the new appraisal laws and loan disclosure laws that went into effect July 30th, the process can take longer than it used to. I would count on at least 45 days from actually getting an accepted offer. But the government loans can take longer. A couple things to keep in mind about the 8k... Although this tax credit is referred to as $8000 housing tax credit, remember that the total amount of tax credit a home buyer gets is equal to 10% of the purchase price of the new house up to maximum of $8000. Thus in order to get a full tax credit of $8000 your purchased property must be above $80,000 in value. Income Limits for $8000 home buyer tax credit: First time home buyers with modified gross annual income of $75,000 get full benefit of this housing tax credit. The tax credit is gradually reduced for those with income between $75,000 to $95,000 and finally a home buyer gets no tax credit if his/her modified gross annual income is more than $95,000. For married taxpayers, the home buyer tax credit is gradually reduced to zero for modified gross annual income between $150,000 to $170,000. This is a Refundable Tax Credit - Remember that this is a tax credit and not a tax deduction. That is qualified first time home buyers deduct $8000 from their total tax owed to the IRS and NOT the total taxable income. Moreover a refundable tax credit means that in case the total taxes you owe to the IRS are less than $8000, you can actually get a refund for the balance amount! I hope that helps... Good luck in the search for your first home!