It's possible to close faster than the national average closing time of 49 days. In fact, some buyers close in 30 days or less, although to do so you'll need a very simple and hassle-free mortgage application. We would say that, on average, you should expect to close a home loan to buy a home in about 25-30 days or less. The fastest we closed was in 12 days, but that wasn't to be expected.
It was a rare case where all the stars were actually aligned. Normally, if you hear someone tell you that they can close in 10 or 15 days, guaranteed, it's probably too good to be true. The people who are out there promoting you and telling you that they can close at ridiculous delivery times have high prices or have very high interest rates and aren't as busy. It takes about 47 days to close an FHA home loan.
FHA refinancing is faster and, on average, takes about 32 days to close. LoanDepot offers what could be the fastest quick-closing mortgage in the race. Its new product, Mello SmartLoan, a comprehensive digital mortgage, offers qualified borrowers a home loan in just eight days, a feat that seems nearly impossible for long-time real estate industry players. Buyers who use conventional financing to buy a home can expect to close 30 to 45 days after the contract is signed.
Special loans, such as programs for first-time homebuyers and VA and FHA loans, may take longer to close because the requirements are more stringent. Once the seller accepts the buyer's offer, the closing process begins and ends on the closing day, when the property changes ownership. This process usually takes 30 to 60 days to complete, if the buyer is applying for a mortgage on the property. If the buyer pays in cash (a loan is not needed), the closing process can be reduced to one or two weeks.
This indicates that, despite seasonal market fluctuations and changing housing trends, it takes six to seven weeks to close a mortgage loan. The buyer's lender controls the amount of time it takes to process and close the loan, unless the buyers pay everything in cash. The total amount of time it takes to close a home depends on everyone involved in the homebuying process. The average time it takes for homebuyers in the United States to close their purchases (as of February 2018) is 47 days for all types of loans, according to leading mortgage software company Ellie Mae.
A buyer and seller can agree to close sooner and can include this in the purchase contract, but the lender must be able to perform their role during that period of time. To close, you must have proof that you have obtained a homeowner's insurance policy for the property you are going to buy. If you buy in cash, you can close as little as seven days after the execution of the contract, provided that you are willing to exempt yourself from contingencies. If your contract says you can't close until your old home is sold, the closing could be delayed if it takes longer than expected.
