FHA Loan Recording Process Basics
The FHA loan recording process takes place during every successful home purchase. Recording happens after funding and when mortgage documents have been physically delivered to the government. If you look back to the documents that were signed and notarized by all parties, those are what is delivered to the county recorders office. Typically, you would expect to record a deed, which is a legal document that allows the home seller to effectively transfer property ownership over to the buyer. When this deed gets recorded, it’s at this point that the whole process is truly official.
How Does a Loan Officially Get Recorded?
So what does the recording office actually do to “record” the transaction?
The actual recording is the moment in time when the mortgage documents are dated and time stamped by the county office.
This makes the mortgage paperwork an official, traceable public document. This means that it is now “on record.”
How Long Does The FHA Loan Recording Process Take?
The recording phase is executed by your actual escrow agent. Like the many others who play a part in the greater mortgage process, there is room for human error. This means that it is up to you to check in with and ensure that your agent properly files your deed. Should something happen and it doesn’t get recorded, you will effectively not be on record as the owner of your new property.
Depending on your escrow agent and the county that your deed is being filed in, you may be able to get everything recorded within 24 to 48 hours. In some cases, the loan funding confirmation may take a while to process and there have been cases where recording takes anywhere from two weeks to a couple months under worst case scenarios.
Recording of a Mortgage Refinance Vs. a New Mortgage
There is no difference in the fact that paperwork is being timestamped and put on official record. The difference is more so what happens after the fact. If you happen to be refinancing an existing mortgage, the standard is that you have a three-day right to rescind. This basically means you are able to consider your refinance decision and effectively cancel it if things just don’t seem right. It is a standard that the mortgage officer provide you a document called your “notice of right to cancel” which will outlay all the terms within that.
Within a week, a buyer should expect to receive a HUD-1 form and a copy of all loan documents. These are your final closing statements and will likely need to be referenced on occasion. Fortunately, if the sale goes through you can store and reference this documentation in your new home office!