How Long Will it take to close on a home and What to Expect
Closing on a loan usually takes 6 – 7 weeks in which you can expect to pay up to 5% of the purchase price in closing costs.
All your hard work and the stress of buying a home will pay off when you get your keys in your hand on the day of your closing. There is a lot that still happens in between though. Here are some tips to help minimize the stress of closing on your home.
One question most people have is, How long does it take to close on our house?
If you have cash, you can close within a couple of weeks, but if not the timeline is more like 6-7 weeks if you’re financing your home with a loan.
- Buyer’s obligations: Your first steps are to choose a title company, Like with our sister company, Search My Title, apply for your mortgage loan, order your home inspection, which we highly recommend even though it is an optional solution, and purchase homeowners insurance.
- Title search: The title search ensures there are no liens are on the house and checks for other title issues that may be underlying. At the end of this process, the title company issues you title insurance, which protects the your investment and guarantees the title is clear.
- Loan processing: The lender starts processing your loan application as soon as you submit it with a copy of your signed agreement. The lender will ask for an appraisal to verify the value of the property and check your credit history,your income, and your debt to ensure that you qualify for the loan. This part of the process is called the underwriting.
Here you will be asked to submit your tax returns,your bank statements, your income verification, and, other documents to get the process started.
|Step||Typical time it takes|
|Initial negotiation||Varies, but allow 48-72 hours|
|Open escrow||Shortly after offer is accepted|
|Clear title||About 2 weeks|
|Home inspection||Within several days of signing contract|
|Repairs||Depends on the severity of the issues|
|Appraisal||Depends on the lender
(report delivered about a week after appraisal is complete)
|Loan processing||6 to 7 weeks|
|Final walk-through||1/2 hour to one Hour on or immediately before closing day|
|Closing||1 to 2 hours|
What happens once you close on a house?
Closing on your house finalizes the loan and the transfer of ownership from the seller to you. This is when the funds are distributed and you get the keys to your new home.
A sale of a house has many moving parts, so sometimes there might be a delay. Most delays are short and fairly easy to resolve. Here are some common ones:
- Financing issues: Know that your mortgage pre-approval isn’t a loan guarantee. Missing documents or a change to your bank account or credit can raise concerns that might notify the lender to take a closer look before it approves your loan.
- Title issues: After financing, title work has the biggest impact on how long to close on a house because you can’t close without a clear title.
- Condition issues: Your final walk-through. Make sure the house is in the condition you want it.