Closing on a home is such an exciting step to the home buying process! You are ready for everything to be complete and to move into your new home. So, how long does the closing process actually take? There is no specific answer for how long it takes to close on the home you are purchasing. Each contract is different based on the specifications and processes that you have to go through. The average time for closing on a home is 30-45 days. Again, this will differ in every situation.
There is a major detail that contributes to the length of time it takes to close on your home. Are you purchasing the home with cash or with a mortgage? If you are purchasing the home with cash, your process will be expedited. It can take as little time as a week when purchasing with cash! However, the percentage of those that purchase a home with cash is considerably lower than those that purchase with a mortgage. Purchasing a home with a mortgage will vary in time depending on loan types. The greatest way to move forward in a timely manner is to be very organized and hold clear communication with all parties; you as the buyer, the seller, and the lender.
It is also important to consider that there are several steps that must be completed during the closing stage. This will also contribute to the amount of time it will take to close on your home. Once you have entered into a contract, you are officially in the escrow process. The timeline through this process will vary based upon your lender, the market, property type, and more.
Here are some of the steps in the escrow process and the average time that each step takes:
- You must first develop the contract and confirm the closing date. It will then take a few days to open the escrow account. Allow up to two weeks to complete the inspection and any requests for repair.
- Submit your mortgage application. This will take anywhere from 5-20 days.
- The appraisal will take 1-2 weeks.
- It will only take about a day to obtain title insurance and homeowners insurance. Your loan approval takes about one day.
- It will take one day to do the final walk-through.
- Finally, your closing appointment will also take one day.
The previous steps are timed based upon a sale that has no issues. There are also instances where the closing date is postponed. There are several things that can contribute to your closing date being postponed. A low appraisal can affect your timeline. This outcome will take extra time and attention before you can move forward with your purchase. You may have to request a second appraisal and even negotiate with the seller before moving forward.
One issue you could encounter without the proper agent working for you is a disappointing final walk-through. If the home is not in the same condition or has not received the repairs requested, it will delay your closing until the issues can be resolved. It is also important to understand any home sale contingencies that may be in the contract. There are some contracts that list a previous home sale before closing on a new home. Be sure that you understand every contingency and how it will affect your timeline in closing.
Another thing that can push back your timeline in financing. Applying for a mortgage can take some time. It is a lengthy and detailed process. A great way to speed up this process is by applying for a mortgage prior to searching for a home. This will give you a pre-approval. Homeowner’s insurance is another important step that you cannot overlook. Overlooking this step will push back your timeline.
The greatest way to help your home closing timeline continue is to hold clear communication and be attentive to every detail. Always hold a back-up plan in case an issue arises. This is especially important in the case of a low appraisal. Another important thing to consider is your lender’s experience. Work with a lender that holds experience and can help you in this process.
We are here to assist you in any way that we can. If you have any questions about the closing process and the timeline, do not hesitate to contact us. Our professional team holds the knowledge and resources to help you throughout this process. It is our desire that you are able to move through this closing process in a timely manner so that you are able to acquire the home of your dreams. Be confident in knowing that you do not have to do this alone!