As a borrower, waiting for closing may be excruciating—especially if you're attempting to close on a house and are eager to be settled, or if you need the money that refinancing would provide you, right away.

You're waiting on other people for the majority of the closing process, and you frequently don't know how far ahead they are on what you need them to complete. Has your file been reviewed by the underwriter yet? Has your employer answered the call from the underwriter to confirm your employment status? What is the appraiser's hold-up in determining the home's value?

While you can't control other people, we can help take some of the mystery and stress out of the closing process by sharing how long it typically takes and why it takes so long.

How Long Does It Take to Close on a House?

The most common question people ask is how long it takes to close on a house, which necessitates a two-part response:

1. How long does it take from submitting a mortgage application to the actual closing day? In the range of 30 to 45 days. Lenders are shortening this time frame as a result of computerized data collection and increased competition. According to Ellie Mae, a technology company that serves mortgage lenders, the average time to finalize a loan on a purchase for the 12-month period ending December 2020 was 47 days.

2. How long does the closing itself take — reviewing and signing all of the loan documents, etc.? Expect at least an hour for your loan settlement, or closing, if it takes place at a table with all parties present. Mobile, postal, and internet closings are all options, which can be significantly faster — or much slower, depending on the situation.

The House Closing Process: Step-by-Step

The closing procedure itself might seem like an endless flood of paperwork. Each of these procedures, however, is critical to the purchase of your property.

Quickenloans simply explains the following steps:

1. Signing of Documents

There are a few documents waiting for you to sign on closing day, such as:

• Proof of homeowners insurance

• Closing disclosure

• The mortgage promissory note

• The deed of trust

• Certificate of occupancy

• The escrow disclosure

You want to take your time to look over the documents thoroughly. But it shouldn’t take all day. Buyers may spend up to 2 hours reviewing and signing closing documents.

2. Paying The Closing Costs

Closing on a home comes with its costs. You may need to bring a certified or cashier’s check on the day of closing to pay the appropriate amount or have your bank wire the funds instead. Because you have to prepare the payment, it’s important to know the overall cost before the day of. Some of the costs ahead include:

• Down payment: Lenders typically require you to pay a portion of your home’s purchase price as your down payment. This becomes the foundation for your home’s equity.

• Escrow funds: To ensure you have sufficient money to pay future insurance and tax costs, your lender may ask for some escrow In addition, they may roll a portion of this cost into your regular payments. They then go into an escrow account.

• Third-party fees: Your lender might use third parties to process your loan, which results in third-party fees like appraisal and credit report fees.

• Prepaid interest: Interest still accrues between the closing date and the day of your first monthly mortgage payment. So, your lender may have you pay some interest upfront to cover this amount.

• Homeowners association fees: You may move into a community with a homeowners association (HOA). There are costs associated with this, such as monthly HOA fees, and you may have to pay the yearly price at closing.

• Mortgage points: Also called a discount point, mortgage points are fees you pay to lower your interest rate.

You should know how much and which closing costs you are paying before the official date. As a result, you can streamline the process, and it may only take an hour or two. Coming unprepared may result in significant delays, though.

3. Transfer Ownership

After signing the crucial documents, including the deed, your ownership will be registered with your county or city. This shows up in public records and certifies that you are the property’s rightful owner. Afterward, you receive the keys.

Unless your contract demands a delayed move-in time, you can move into the house as soon as you are able.

Transferring ownership takes a little longer than the previous steps. It may take several days or multiple weeks.

Frequently Asked Questions

1. Is it possible to close in less than 2 weeks?

While closing in two weeks is entirely achievable, it necessitates a streamlined closing process. Each phase has its own time frame, which might cause the process to drag on. And a variety of difficulties, such as missing financial information, liens on the title report, or inaccurate assessments, can create delays.

Cooperation, coordination, and proactive parties are required for a quick closure.

2. Where does closing day take place?

Your closing will most likely take place in an escrow agency, a management firm, or a title company. Depending on the lender, it may happen in alternative locations, such as the home itself.

If required, closings can even take place virtually. Before the closing date, talk to your lender about your expectations.

3. What do I need to bring on closing day?

On closure day, a few items may be required, such as:

• A cashier’s check for possible closing charges

• An acceptable form of ID

• A copy of your homeowner’s insurance policy

• Your Closing Disclosure

• Contact information for important parties, like your attorney or real estate agent

Keep in mind what you require on a personal level. Coming unprepared might cause the closing process to be delayed.

Simply,

The time length to close on a home depends on several factors and while delays can be frustrating, one of the best ways to ensure a smooth closing process is to be proactive.

Not willing to go through the trouble of having to wait for your house to close with all the complicated process and long waiting that conventional loan-homebuyers bring? Ash Creek can provide you with an all-cash offer. Close and move out on the date of your choosing. Contact us today!