Buying a home is still the American dream. The process of purchasing a home can be really exciting. You get to spend your time looking online at what are typically beautiful properties. The real fun then begins when you start touring the ones you like. Your real estate agents will likely show you several properties before you find one that meets your criteria.
Your closing will be the conclusion of your journey into home ownership. One of the most common questions from home buyers is how long does it take to close on a house? Your desired closing date will be discussed with your buyer’s agent. The agreed-upon closing date will need to be mutually satisfactory with the seller. Once the closing date has been agreed to, it will become part of the contract. The closing is the conclusion of a real estate transaction. It is when a new deed will be prepared on a property and funds will be exchanged at an agreed upon meeting place.
What’s The Average Time to Close on A House?
Once you have signed an offer to purchase, there will be some important steps that take place on the way to a closing. You likely have some essential real estate contingencies in your contract. Most real estate closings fall between 30-60 days. Keep in mind a closing date is negotiable. It may be more or less than the average.
Complete a Home Inspection
The first phase includes your due diligence on the property. You should have the home inspected by a professional home inspector. Home inspectors go over a property inside and out with a fine-tooth comb. They will point out any deficiencies they discover. Usually, your home inspection due diligence period will be around 10 days from when you execute the offer to purchase. If the findings are unsatisfactory, you will be able to negotiate the repairs be made by the seller, a credit is given to you (the buyer) or you can cancel the contract. Your real estate agent will help guide you in what is the best route to take.
The Home Will Be Appraised
When you are getting a mortgage it is likely your lender will want a real estate appraisal completed. Sometimes lenders will waive the appraisal if you are putting a down payment larger than twenty percent. Waiving appraisals are done to strengthen the appeal of an offer. It gives the seller comfort that a buyer is not going to walk away from the transaction if the appraisal is lower than expected. Typically, when there are appraisal issues they get worked out.
You’ll Need to Get a Mortgage Commitment
One of the last phases in your home buying journey will be getting a mortgage commitment from your lender. The typical time frame for procuring financing is 4-6 weeks from the execution of the contract.
Some lenders can get buyers approved quicker than others. The volume of loan business at the time is often a factor. If there is significant re-finance volume happening at the time, a commitment to lend could take longer.
Getting your financing will be the last big hurdle. There are several things you need to avoid doing before closing day. One of the most significant mistakes is making a large purchase like a car that could throw your debt to income ratio out of line and force the lender to cancel your loan commitment.
What Will You Be Signing on Closing Day?
There are several vital documents that will be signed by a home buyer on closing day.
Some of the paperwork you’ll be expected to sign include the following:
The promissory note which is the document that commits you to repay the loan.
The mortgage is a document that protects the lender’s right to foreclose on the house if you fail to make your payments.
The escrow disclosure which provides the details of your monthly payment obligations with the lender.
You will also need to carefully review and sign all disclaimers, disclosures, and government documents the lender asks you to sign. Many of them will be boilerplate forms.
What Will a Buyer Need to Bring to Closing?
Before the signing, consult with your lender to determine what documents you will need. It is likely that you will need to bring the following items :Identification documents, such as a passport or driver’s license, will be required.
The Closing Disclosure that you have received must be compared to the final documents three days before the signing,
A bank check making up any difference between your mortgage, down payment and the home’s purchase price.
How Long Will Closing Day Take?
The time it will actually take for closing day will depend on how quick you are to sign the presented paperwork. Most buyers will sign as it is presented to them. However, if you like to read everything that you’re signing, it could take a while.
Most closings take around 45 minutes to a little over an hour to complete.
You are now up to speed on the process for closing on a house. The process will probably seem longer than it really is due to your excitement of getting into a new home! <
Carrie Colby is a Broker with Allied Real Estate, 909 Roosevelt Trail in Windham. She can be reached at 207-232-5497.
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