How Long Does It Take To Close On a Home?

The last step of the process when buying a home is called the closing. It is a step where the property finally and officially change owners and the seller is paid. You, the buyer, will sign all of the necessary paperworks that will lead to the title of the home to be transferred. 

During the final stages of the home buying process, the buyer must review the documents required for the mortgage if they are financed. The buyer will also have to pay the closing costs and this stage will determine also whether if the property has liens or encumbrances. Sellers will also have to make sure the agreed upon conditions are done, like repairs. When all of this are done, the keys are handed to you and you are now the proud owner.

All of the processes mentioned above will take time. It does not just take a a few days or a week. Let us discuss how long does it really take to close on a home.

Average Time to Close on a Home

The time it takes is 30 to 60 days on average. This national average covers everything from getting approved for a loan, getting the property inspected, repaired, appraised, and checking of the title if it is clear of disputes.

Here are some typical scenarios people face:

• Mortgage-financed homes – Lender need time to verify your income whether you are able and has the capacity to pay. They will look at your financial history, current job, and credit score. This usually takes a month or more.
   
• Cash purchases – If you pay in cash then it would be significantly faster. According to Zillow it would only take an average of 7 days considering the paperworks are in order.
   

Averages don’t actually mean the closing will be done during the expected number of days. It varies from situation to situation. So expect that your transcation might get delayed and if the transaction goes faster, then better.

Step-by-Step Closing Process (and How Long Each Takes)

These numbers below are just averages and may vary. Most of the steps will include other parties that serve their own timelines as well considering other clients.

1. Apply for a Mortgage (Several Days to Weeks)

The lender will be meticulous about your financial background. Their goal is to decrease their risk, make profit all the while making the payments as reasonable as possible. If you want to decrease the number of days to get approved, your best course of action is to provide them with whatever documents they need as soon as possible.

2. Home Inspection (Around 1-3 Days)

The inspection itself only takes about 2 to 4 hours for an averaged size home. However, it is the final report that will take 1-3 business days to deliver. The size and complexity of the house will also contribute in an increase amount of time.

3. Appraisal (1–2 Weeks)

You will need to schedule with the appraiser and wait for the visit. If you are financing your house, then lenders will need to appraise your home. After appraisal, you will need to wait 1-2 weeks before receiving the report. If the appraisal does not match the price, the renegotiations could also add to the delays.

4. Title Search and Clearance (10 days–2 Weeks)

A title company will check public records to confirm the seller legally owns the property and that it’s free from liens or disputes. If the title is clean then it would take 10 days to 2 weeks but if there are issues then it will take longer; usually weeks to several months.

5. Escrow Period

The escrow period starts when the buyer puts earnest money on the house. The whole duration is up until all the conditions of the sale are met. Inspections, appraisals, and lender approvals happen during escrow.

6. Final Walkthrough

This step is optional. The purpose of this step just confirms that the home is in the expected condition and all repairs have been done and no new damage has occured.

7. Closing Day Paperwork (A Few Hours)

This step of the process only takes a few hours since both the buyer and seller will only meet for signing of the documents. This is when the buyer pays the closing costs and the remaining downpayment. The money and other important documents held in escrow will also be released and then the buyer receives the keys.

Factors That Affect Closing Timeline

If not for other third parties then the closing would be much earlier than the average of 30 to 60 days. This is because other transactions are not in your control. Some of these have been mentioned earlier:

Type of Loan

Different loan programs have different requirements:

• Conventional loans – Usually the fastest, with fewer restrictions.
   
• FHA, VA, or USDA loans – May take longer because they require extra documentation and government approval steps.
   

Buyer’s Financial Readiness

If the buyer is financially capable like paying in cash then it would be much sooner. If however, the are going to choose financing, then they will still have to go through the lender’s process. Usually in this process, delays happen more often.

Home Inspection and Repairs

Some issues found during the inspection may take longer than expected especially if the damage is significant or complex. The renegotiation also will add time and as well as the availability of the inspectors.

Appraisal Delays

Scheduling for appraisal will depend on how many clients the lender has before you. You may even encounter when you need another lender for financing and this will add more time. Another situation is when you will need to wait for the lender for your turn because there are still other clients who came first.

Title Issues

This is one of the most time consuming issues before closing. A lien could even add more time since it would require the seller to pay the owed money first before it could be sold. Even if it would be paid right away, the time needed to clear the title is also significant.

Contingencies in the Contract

Contingencies are normal in buying a home. If there aren’t any contingenies then you may be lucky. But most likely contingencies are present. These are repairs, appraisals, pre-approval, home inspections, and etc.

Scheduling and Communication

Miscommunication where the parties involved takes time to respond. The parties are usually: lenders, sellers, buyers, real estate agents, appraisers, inspectors, and attorneys. If any of them take too long to respond, then it adds up to the time you need to wait. Faster responses keep things moving.

How to Speed Up the Closing Process

Even though most of the time the process is not in your control, you can still help make the process faster. These are what helps things move forward quicker:

1. Get Pre-Approved Early

Pre-approval shaves off a lot of time later on because this means you already have been approved before you even looked for properties. If you choose financing for your home then the lenders won’t have to start from scratch in looking at your overall financial health.

2. Stay Organized and Respond Quickly

Keep your most updated and important documents in a place where you can immediatley get it. Sometimes, other parties involved will need the documents and the buyer themselves will cause the delay. Respond quickly to messages and if they don’t respond back immediately, give them a reasonable time before you send them a text again.

3. Work With Experienced Professionals

Choosing a reliable real estate agent, lender, and title company makes a big difference. Experienced professionals know how to avoid common mistakes that can cause slowdowns.

4. Schedule Inspections and Appraisals ASAP

Yes, you can contact inspectors and check their availability ahead of time. This is also applicable to appraisals to speed up the process. But only set official schedulings once you are under contract.

5. Use Digital Tools

Many lenders and title companies now use e-signatures and online platforms to exchange documents. This not only makes things easier but can also prevent paperwork errors that cause delays.

6. Avoid Major Financial Changes

Opening new credit accounts, changing jobs, or making large purchases can affect your loan approval and stall the process. Keep your financial situation steady until after closing.

What to Expect on Closing Day

This stage will involve signing legal documents so it is imperative you read all the documents first and make sure you understand. Take as much time as you want in reviewing them to make sure there aren’t concerns later on once you sign them. This day would also include paying the closings costs and a final walkthrough of the property making sure that the condition of the house is as expected.

Make sure to bring ID on this day as it is mandatory because this will be used to verify your identity for the documents to be notarized to prevent fraud and comply with all other necessary legal steps to ensure that you the buyer, the seller, and the lender are protected with the binding agreements of a valid property transfer.

 

 

 

 

 

 

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