How Long Does It Take to Close on a Home?

Mortgage Pre-Approval and Loan Processing:  One of the first steps in the home-buying process is obtaining mortgage pre-approval. This process can take anywhere from a few hours to a few days. Once you’ve found a suitable property and have an accepted offer, the loan processing begins. This includes appraisal, title search, and underwriting, which can take 2-4 weeks.

Appraisal:  An appraisal is required by most lenders to ensure the property is worth the amount they are lending. This process usually takes about 7-10 days but can be longer if the appraiser is backlogged or if the property is unique.

Title Search:  A title search is conducted to verify that the seller has the legal right to transfer ownership and that there are no outstanding liens or claims on the property. This process typically takes about 1-2 weeks.

Underwriting:  The underwriter reviews your loan application, financial documents, and other supporting information to ensure you meet the lender’s requirements. This stage may take 1-2 weeks, but delays can occur if additional documentation is required.

Closing Date Coordination:  Closing dates must be coordinated between the buyer, seller, lender, and closing agent. Depending on the availability of all parties involved, this can take anywhere from a few days to a few weeks.

Contingencies:  Contingencies are conditions that must be met for the contract to move forward. Some common contingencies include a satisfactory home inspection, appraisal, and financing. Depending on the terms of the contract, the timeline for addressing contingencies can vary.

1. Get Pre-Approved: Obtain mortgage pre-approval before house hunting to help expedite the loan processing stage.
2. Stay Organized: Keep all important documents and records readily available. Promptly provide any additional information requested by your lender.
3. Communicate: Maintain open lines of communication with your real estate agent, lender, and closing agent. This will help address any issues that may arise during the process.
4. Be Proactive: Schedule inspections, appraisals, and walk-throughs as soon as possible to avoid potential delays.
5. Read and Understand the Contract: Make sure you understand the terms and conditions of your purchase contract, including deadlines and contingencies.