Ok, I am really confused...?

Question

We are buying our first home, and it is through fha. We are sceduled to close on Friday. The appraisal has been done, and the title work is complete.My loan officer is telling me that our file is in final underwriting. I spoke to the realtor and she said that we are good for closing on friday, all she is waiting on is the HUD document. My question is... Is the completion of the HUD document, the final underwriting that our loan officer is talking about? I thought we had to have the official clear to close from the underwriter, then the HUD would be worked up. Can someone explain this to me?

Answer 1

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Answer 2

The title company assumes the loan will happen, so they are moving forward on the steps necessary to close the loan; which includes doing a HUD.

The lender is doing one last review and approval of the loan package, which includes a look at the HUD statement to make sure that it's in order.  In fact, at the settlement table, a signed copy of the HUD form may be faxed to the lender for final approval.

I wouldn't worry.

Answer 3

You are correct. When your loan is clear to close the Lender sends the Title Company final "Closing Instructions" and loan docs.  The closing instructions entail all fees associated with your purchase and instructions for preparing the HUD.  After the Title Company prepares the HUD they submit it to the Lender for final approval. The HUD must be approved before you sign.

It is not unusual for the HUD to be prepared the day before or even the day of closing.  You'll be fine, it sounds like everyone is on track.

Good luck and congrats on the new home!