You can expect a house to close 30 to 50 days, although the closing day itself usually doesn't take more than a few hours. Due largely to the real estate market and the lending institution, this can easily be extended to a month and a half, even two months. 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.
No matter what point in the process occurs, the insurer must review and verify the buyer's work data, bank accounts and credit report as provided by the lender. You can't close the purchase without their approval. 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. Today, almost every lender has an online experience where you can apply for a home loan, consent to a credit check, and upload your financial documents for review.
A home financed with mortgages won't close in two weeks or less, but there are ways to reduce a few days or even a week off your real estate transaction. Buyers who pay cash for their new home instead of going through the mortgage application process tend to close faster. For example, you can pay your security money by placing it in an escrow and, when the house closes, it will be credited as a down payment. Once you've found the perfect home and the buyer has accepted your offer, the following are the steps you'll need to take to close the deal.
Closing day is the day when you sign all the documents, get the keys and become the official owner of a home. 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. Buyers who are already pre-approved when they make an offer and who remain in close contact with their mortgage lender will have the best chance of closing a home quickly. First, let's distinguish between the time it takes to close a house and the time it takes to close a mortgage.
It can take anywhere from one week to 60 days to close a home, depending on the type of property and whether you pay cash or finance the purchase. For example, a conventional refinance takes only 44 days on average according to ICE, while the purchase of a conventional home takes 52 days to close. Usually, on the closing day or the day before, you'll take one last tour to make sure everything is OK with the new house. 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.
The buyer's lender controls the amount of time it takes to process and close the loan, unless the buyers pay everything in cash.
