Your offer is accepted, now when can you close on your new home? This is a common question especially among first time home buyers. Can you close in a day or two, or will it take weeks or months? These are questions home buyers want answered before they buy a home.
If you are looking to close quickly, a cash deal is the best way to go. Cash deals can usually close in about one week if all the contingencies have been satisfied or removed. Contingencies that take a lot of time like inspections or the sale of another property, will slow the process to longer than a week. A basic cash deal with no contingencies can close in about a week provided your funds are available, the property has clear title and your title company can get everything set up in time.
Short sale and foreclosure properties, on the other hand may take anywhere from two to six months to close. Even in a cash deal, the bank needs to approve the sale and work out all the details with the seller before they can even think about closing. Distressed properties are difficult to close on in a short time period, so they are not an option for a buyer on a time schedule.
For most people, once you have a signed purchase agreement, you can plan on closing in around six weeks if you are financing your purchase. Your loan officer will need to submit your mortgage application, schedule an appraisal, and receive final approval from underwriting. Your title company will need to do a title search to make sure everything is in order with the property you are purchasing. These things take time.
What can cause a delay in a financed home purchase?
- Not providing your loan officer with requested documents in a timely manner.
- Negative changes to your credit score.
- Loss of employment or pay cut.
- A low appraisal.
- An appraisal with work orders.
- The title company finds title issues such as liens, judgements, or ownership questions.
How can you keep your closing on schedule?
- Work with an experienced Realtor who will provide you with the necessary guidance.
- Choose a loan officer who is familiar with your type of loan and the current market.
- Make sure your title company stays on top of your closing.
When can you close on your new home? Closing on a home is a product of a team. The team includes buyers, sellers, Realtors, loan officers, and title companies, so make sure you build a good team when you choose who you would like to work with. Every team member will have a hand in when you can close.