Closing on a home is the final step in what can be a long process. After months of searching to find the right home for you and finally having your offer accepted, it can feel like the closing process is taking forever. While no one can say for sure how long a closing will take, you can look at the average times to get a better idea of what to expect after you place your offer.
What Happens During The Closing Process?
The closing is where you and the seller of the home sign the actual paperwork that will transfer ownership of the home to you. If you are borrowing the money from a lender, this is when they will transfer the funds over to the seller. At the end of the closing, you will receive the keys to the home and be able to start moving in.
What Causes Closing Delays?
Most closing delays are due to the bank or lender providing your mortgage wanting to be sure that you meet all of their requirements before they approve the loan. If you went through the pre-approval process before you started shopping for a home, this part of the process can move a little faster. But it will still take some time as the mortgage underwriters go through your file piece by piece to ensure they have all the documentation needed. During this time, you might have to provide extra documentation or field calls from your loan officer to answer questions about your finances or employment.
How Long Does The Average Closing Take?
On average, most buyers close on a home within 30 days of making an offer and having it accepted. If you are using a buyer assistance program, like a first time homebuyer’s grant, it can be closer to 45 days. Buyers who pay for a property in cash can expect a purchase to close even faster, in an average of two weeks time.
What To Expect on Closing Day
Most closings are held at a title agency, but the meeting can also take place at a realtor’s or attorney’s office. You can expect to sign your name multiple times on the stack of paperwork that transfers the property to you and the mortgage paperwork. The closing agent will then submit this paperwork to your lender to have the funds released and transfer the property title over to you. Once this is done, the property is officially yours. This is your last opportunity to read the paperwork carefully, ask questions and bring up any issues you want resolved before you sign.
If you’re ready to start the process of looking for a new home, the Core Group can help you find the right place for you. Click here to learn more.