The secret to get your FHA 203k project closed FASTER
My favorite story about closing fast 203k deals has always been with Donna Nix when she closed her first full 203k in 21 days. She and others get it that nothing happens until the paperwork is complete and the clock doesn't start ticking until you get all the financial paperwork to the lender. Get prequaled.
The problem when you have delayed closings is quite often due to the lack of a team or improper use of a team. If any one of the teammates fails to just do their job and decides it is their job to push everyone else you will not have a good closing time. In one case I had a lender loan officer who was so bad and called about eight times per day asking me if I was getting the project done, the fact is that it was distracting at best because he would stop my train of thought over and over and over again. Finally I threw my hands up and told him that I would put it away for the day and then asked him if he had his VOI and VOE and all of his 1003, who was going to be the appraiser... he couldn't handle that. Oh, he could dish it out, but he couldn't take it when you turned the tables on him.
What should happen is what Donna did. Hire us to do our job recognizing that we are professionals and run our company like a business. We will need a termite report, a complete order with the names as you want them on the paperwork and any other reports that may exist. That includes contractor bids if they exist. Okay if they don't' as we are going to conduct a "203k compliance inspection"
What should you expect? Don't expect the order to be written by the next day although a good many can be. The key is to get the consultant involved sooner rather than later and give them some uninterrupted time to write the report. Bear down on your part of the puzzle. Treat it more like a race to the finish. If you work on YOUR part, and the other teammates work on their parts of the puzzle it all comes together in about two weeks. First draft is usually ready in 4-7 days, client approves or modifies the specs then it goes out to bid. Contractors not familiar with the FHA 203k program may take 3-4 weeks to put that bid together... holy cow, we don't have that much time.
Contractor's who make a career of 203k work know they must get those bids completed in 3-5 days and typically use their own crew to complete many items that many sub out to others. That way they control their costs more effectively.
What NOT to do? Don't wait till the lender has all their work completed and all the loan in place with a missing piece... the 203k work write up as it is going to take two weeks as it was designed by HUD to take.
That means if you want to get your FHA 203k loan closed faster all you have to do is find a solid team and let them function. Could you imagine a football quarterback running his play completely then telling the tight ends to run their part of the play... it can't possibly work that way. Let them run the play together at the same time. Get the consultant involved right up front.
I had another loan officer call a while back and tell me it was her first 203k, she did just what I said above and called me in 28 days to tell me it closed and was so very easy. Then the big question "Why do other lenders say it takes 45-60 days?" Lordy, Lordy, Lordy. We actually do all of their paperwork for them so they just need the 203b part and a Maximum Mortgage Worksheet which we can actually provide too if they want us to. If you want to close your loans faster then contact us. 203k consultants Concord, Pittsburg, Richmond, San Pablo, and anywhere else for that matter.
over the years we have done quite a few in Novato. Glad you are here.