Closing on a House: How Long It Takes, What to Expect

Table of Content

• Homeowner’s insurance
• Buyer financing (22% of delays)
• Tips for staying on your closing timeline
• Review the Closing Disclosure
• Earnest money: what it is and why you need it
• Rocket Mortgage
• Mortgage Application Checklist: Documents Needed for a Home Loan
• How Long Does It Take to Close on a House?: The Step-by-Step Guide

Closing processes can vary widely, even within the same state. For example, the escrow process is different in northern California and southern California. Escrow orders are drawn and signed shortly after the offer acceptance in southern California, but they're drawn and signed just before closing in the northern counties.

This will ensure there is not a disruption in service if you’re planning to move in on the day of closing. There is a lot of paperwork that will be signed at the closing table, which you want to review carefully. The home buyer schedules a third-party conducted home inspection to look for any faults with the home that is being purchased. The home inspection is an essential part of closing on a house.

Homeowner’s insurance

The day before you’re scheduled to close, you and your real estate agent will do a final walkthrough. Your agent takes you through the home to make sure that the previous owners have completely moved out and that it’s move-in ready. If the sellers agreed to perform any repairs after the home inspection, you should check to see that they’ve been done. One of the most common delays can happen during the appraisal process.

Compare it to what is stated in the loan document to make sure everything is correct. The buyer and buyer’s agent are typically meeting with the closing attorney to sign all the documents. If the property is not recorded on the day of your closing, you might not be able to gain access to the home. Many real estate attorneys will not allow a buyer to take possession until the deed has been officially recorded. It is smart to take off the day from work so you are not stressed about the closing day time frame. You could also get a chatty closing attorney who makes the closing time take longer than necessary.

Buyer financing (22% of delays)

Also ask who their homeowners insurance company is and how much they pay, keeping in mind that you could pay more or less depending on how much coverage you want and the deductible you choose. You don’t even have to order title insurance or a home inspection, though you’d be foolish to skip those steps. Closing on an all-cash purchase can happen in a matter of days. All you have to do is transfer funds, legally change ownership and get the keys. Each step from here on out will be scheduled based on that date, the final deadline on your home sale . If you are concerned about the process taking too long, consider the alternative of requesting a cash offer for your home.

She leverages this background as a fact checker for The Balance to ensure that facts cited in articles are accurate and appropriately sourced. In Florida, for example, the buyer must give the previous owner a 30-day' notice to vacate the premises, while in Ohio, it could be less than a week. Additional steps depend on whether the foreclosure is judicial or non-judicial.

Tips for staying on your closing timeline

If the appraisal comes in under contract value, the buyer can bring extra funds to close the gap, you can reduce the price of the home, or you can meet somewhere in the middle. Otherwise, if the buyer added a home appraisal contingency to the contract, they can walk away from the deal with their earnest money if you’re unable to come to an agreement. After you accept an offer and the home has been inspected, it’s time for the house to be appraised. An appraiser’s onsite visit of the home will take around one to three hours. If any defects in the home are revealed, you'll need to tack on extra time for repairs.

Buyers and sellers both should take their time with the many closing documents. Read them thoroughly and request further explanation or clarification if there’s anything you don’t understand. Bring a copy of any other paperwork you have signed or received to compare and make sure that everything is stated as it should be.

Review the Closing Disclosure

If they say 30 days, you might want to lock your interest rate for 45 days to be on the safe side, even if you have to pay a bit extra. Homes at high risk of damage from natural disasters or with an extensive claims history may be difficult or expensive to insure. For example, Florida homes often have this problem due to the state’s susceptibility to hurricanes. Since mortgage lenders require homeowners insurance (and you’ll want it to protect yourself anyway), insurability problems could delay or derail your closing. The seller will sign the closing documents first and in many cases will not need to present at the closing. A seller may be able to pre-sign the deed and many other transfer documents, while the buyer will usually need to sign almost everything in person for the lender at closing.

There are also a few other minor things that will happen on the buyer’s part such as getting a home insurance policy and possibly title insurance. When you are the winning bidder, home inspections will be scheduled unless you have waived them. Some buyers are removing the home inspection contingency in an effort to make their offer more appealing. The first in the process of closing on a house is finding one you love. Once you make an offer, there is usually a response within 24 hours. Your offer can either be accepted or the owner could counteroffer.

So, on your closing date, your mortgage loan becomes final and you get the keys to your new home. From house hunting to getting a mortgage and having an offer accepted, it can take several months until you get the keys to your new home. Once closing day is in sight, you may feel like you’re in the home stretch. She covers real estate, personal finance, money management, and market best practices. Jena is passionate about empowering people to find their dream homes and making the home-buying process a delightful one.

But keep in mind that at this point, they’ll also notify the main credit bureaus, which will lower your credit score. You may not bring all these items to the closing table, but you need to have these items ready for the new homeowners. If you’re not bringing these items to the closing, then leave them in a designated spot inside the house that the buyers can easily find after the closing. You will need to do a final walkthrough of the new home with your real estate agent. This is your chance to double-check that any agreed-upon repairs were taken care of. You can also ensure the home is in the same or better condition than the original agreed-upon state.

Rocket Mortgage

Another potential issue is if the seller made renovations without a permit. With any home purchase, there is always the potential for roadblocks to delay or derail the path to closing. According to the National Association of Realtors, 24% of closings get delayed but eventually go to settlement — only 7% of contracts die before the deal closes. Closing costs range between 2% and 5% of the purchase price of a home on average.

Some cash buyers may choose to supply this information with their offer letter; others may need to contact their bank and arrange for funds verification. This can be done before you make the cash offer to streamline the process. A cash buyer can skip everything related to a mortgage, from the home appraisal to income verification, which saves them a ton of time. But there are still some loose ends that the cash buyer should tie up before racing to the closing table. Buying a home is a large financial transaction with many legal ramifications. Everyone involved will need time to perform their due diligence.