Buying a home is an exciting journey, but the process doesn’t end when your offer is accepted. The next major step is closing on the house, which can be both exhilarating and nerve-wracking. So, how long does it take to close on a house?
The short answer is that it typically takes 30 to 45 days, but the timeline can vary based on several factors.
In this article, we’ll break down the closing process, what affects the timeline, and how to streamline the experience for a smoother path to homeownership.
What Is the Closing Process?
Closing is the final step in the homebuying process, where ownership of the property is officially transferred from the seller to the buyer.
This process involves several critical steps, including document verification, underwriting, and final approvals. Once closing is complete, you receive the keys and officially become a homeowner.
Typical Timeline for Closing on a House
The average time to close on a house is 30 to 45 days from the date the seller accepts your offer. Here’s an overview of what happens during this period:
1. Loan Application and Approval (5-10 Days)
Once your offer is accepted, you’ll need to formally apply for a mortgage. While preapproval speeds up this step, the lender still reviews your financial details, including credit history, income, and assets, to approve the loan.
2. Home Inspection and Appraisal (7-14 Days)
A home inspection is conducted to assess the property’s condition. If issues arise, negotiations for repairs or price adjustments may extend the timeline. Simultaneously, your lender will order an appraisal to ensure the home’s value aligns with the loan amount.
3. Title Search and Insurance (7-14 Days)
A title search is performed to verify the property’s legal ownership and uncover any liens or encumbrances. You’ll also purchase title insurance to protect against future claims.
4. Underwriting (10-20 Days)
During underwriting, the lender meticulously reviews all documents to confirm your eligibility for the loan. This step often takes the most time, as underwriters may request additional documentation or clarification.
5. Closing Disclosure and Final Walkthrough (3-5 Days)
At least three days before closing, you’ll receive a Closing Disclosure outlining the loan terms, monthly payments, and closing costs. You’ll also conduct a final walkthrough to ensure the property is in the agreed-upon condition.
6. Closing Day (1 Day)
On closing day, you’ll sign the necessary documents, pay closing costs, and receive the keys to your new home.
Factors That Can Impact Closing Timelines
While 30 to 45 days is typical, several factors can influence how long it takes to close on a house. Here are some common variables:
1. Type of Mortgage
Different loan types have varying requirements that can affect the timeline:
- Conventional Loans: Generally quicker to close as they have fewer requirements.
- FHA and VA Loans: May take longer due to additional documentation and inspections.
2. Buyer Preparedness
Delays often occur when buyers fail to provide necessary documents promptly. Being organized and responsive can significantly speed up the process.
3. Seller’s Circumstances
If the seller needs extra time to move out or resolve contingencies, such as repairs, it can delay the closing.
4. Market Conditions
During busy real estate seasons, lenders, appraisers, and inspectors may experience backlogs, which can extend the timeline.
5. Issues with the Property
Problems uncovered during the home inspection or title search, such as repairs or legal disputes, can add days or even weeks to the closing process.
How to Expedite the Closing Process
While some factors are beyond your control, there are steps you can take to speed up the closing process:
1. Get Preapproved
Having a mortgage preapproval before making an offer demonstrates to sellers that you’re a serious buyer and allows the lender to process your application faster.
2. Respond Quickly to Requests
When your lender or real estate agent requests documents or signatures, provide them promptly to avoid unnecessary delays.
3. Work with Experienced Professionals
Choosing a knowledgeable real estate agent, lender, and title company can help streamline the process. DSLD Mortgage offers expert guidance to help you navigate every step of the mortgage and closing process efficiently.
4. Review Documents in Advance
Familiarize yourself with key documents, like the Loan Estimate and Closing Disclosure to avoid last-minute surprises.
5. Avoid Financial Changes
Refrain from making large purchases, changing jobs, or opening new credit accounts during the closing period. These actions can affect your loan approval and delay the process.
What Happens If Closing Delays Occur?
Delays can be frustrating, but they’re not uncommon. Here’s how to handle them:
1. Communicate with All Parties
Stay in regular contact with your lender, agent, and seller to address any issues promptly.
2. Request an Extension
If you’re unable to meet the agreed-upon closing date, work with your agent to negotiate an extension with the seller.
3. Resolve Issues Quickly
Address any problems, such as missing documents or inspection findings, as soon as they arise to keep the process moving.
The Final Stretch: Closing Day
On closing day, you’ll meet with your lender, agent, and possibly the seller to sign documents and complete the transaction. Be prepared to:
- Bring a government-issued ID.
- Provide a cashier’s check or proof of wire transfer for closing costs.
- Review all documents carefully before signing.
Once everything is signed and payments are made, you’ll receive the keys and officially become a homeowner. Congratulations!
Conclusion
Closing on a house is a multi-step process that typically takes 30 to 45 days, though various factors can affect this timeline. By understanding the process, staying organized, and working with experienced professionals, you can navigate closing with confidence.
Whether you’re a first-time buyer or a seasoned homeowner, patience and preparation are key to a successful closing. With the right approach, you’ll be unlocking the door to your dream home in no time.
