How Long Does It Take To Close On A House?
Wondering how long does it take to close on a house? Statistics show that the average person spends about ten years in their home. So, when you’re ready to move on from your starter home and upgrade to your forever home, you want to ensure the process goes as smoothly as possible. One of the most significant factors in a successful and stress-free home purchase is understanding how long it will take to close on a house since there are a number of variables that can impact the process and extend the timeline.
Speaking With A Mortgage Lender On How Long To Close On a House
The average time to close on a house is six to eight weeks, but it can take longer if you get a mortgage loan. The loan process alone can take anywhere from a few days to a few weeks. The first step in understanding how long it takes to close on a house is to speak with a mortgage lender. They will be able to provide you with an estimate based on the type of loan you are applying for.
Getting Pre-Approved For a Mortgage
The first step in closing on a house is getting pre-approved for a mortgage loan. The pre-approval process involves submitting a loan application to a lender. The lender will review your financial information and credit history to determine if you qualify for a loan. The pre-approval process is important because it gives you an idea of how much money you can borrow and what interest rate you’ll be charged on the loan.
Gathering All Necessary Documents
The next step is to gather all of the necessary documentation. This includes things like your tax returns, pay stubs, bank statements, and more. The more prepared you are, the faster the loan process will go. Once you have everything in order, the loan process can begin. The first step is to complete a loan application. This can be done online, over the phone, or in person at a bank or credit union.
After you submit your loan application, the lender will pull your credit report and verify your employment and income. They may also request additional documentation, such as bank statements or tax returns. Once your loan application is approved, the lender will send you a loan estimate. This document will outline the terms of your loan, including the interest rate, monthly payment, and closing costs.
How Long Does Closing On a House Take
As we explained above, how fast can you close on a house depends on a number of factors, including the type of mortgage loan you choose, the lender you use, and the amount of time it takes to complete the loan process. Some homebuyers are able to close on a house in as little as 30 days, while others may have to wait 45 days or more.
Finding A Real Estate Agent
Once you’ve been pre-approved, you’ll need to find a home that meets your needs and budget. Having an agent you trust really helps speed up the whole process. They’ll help you find homes that fit your budget and lifestyle as well as negotiate the best possible price.
Making An Offer On A House
The moment you’ve found a few homes you like and meet your criteria, it’s time to put in an offer. If the seller accepts your offer, congratulations! You’re now in escrow. Escrow is the period of time between when an offer is accepted and when the sale is finalized, and the keys are exchanged. The escrow period is typically 30-60 days but can be shorter or longer depending on the loan you’re getting, whether you’re selling a home at the same time, and other factors. Understanding what happens during escrow will help keep the process running smoothly.
What Happens During Escrow
During escrow, you’ll need to get homeowner’s insurance and arrange for a home appraisal. The lender will also order a title search to ensure there are no outstanding liens or judgments against the property. Once the appraisal is complete, the loan officer will review it to ensure the property’s value is sufficient to secure the loan. At this point, you may ask yourself how long after appraisal to close?
Your real estate agent will work with the seller’s agent to schedule inspections of the property. The most common types of inspections are general home inspection, septic inspection (if applicable), pool inspection (if applicable), and termite inspection (if applicable). Once all checks are complete, you’ll get a final walk-through of the property to ensure everything is in order before proceeding.
If everything goes according to plan, closing day will be here before you know it! The loan will be approved and you’ll be able to close on the house. Closing day is when the deed to the property is transferred from the seller to the buyer and all money changes hands. At this point, you’ll sign a lot of paperwork and then receive the keys to your new home!
Get In Touch With Our Team For More Information
The length of time it takes to close on a house depends on many factors, but knowing what to expect can help streamline the process and make it as stress-free as possible. Work with your mortgage lender and real estate agent to schedule inspections and final walk-throughs so that everything is taken care of well before closing day arrives. Soon enough, you’ll have the keys to your new forever home!