How Long Will it Take to Close on a Home?What is the time it takes to close on a house?
What's The Average Time For Closing From Start to Finish
There is much that takes place in a real estate transaction. When a buyer makes an offer on a property one of the most vital terms found in the contract will be the closing date. It makes sense that a buyer would ask the time it takes to close on a home. In order to be competitive with other potential buyers the contract needs to be structured to make sense.
The average time it takes for a real estate transaction to close is 6 to 8 weeks. Buyers and sellers both need to have these general time frame expectations in mind. If one party wants something dramatically different it could cause the transaction not to come together.
For example, if a buyer wants a closing date is 3.5 months out from the offer and the seller does not want a closing date longer than 2.5 months the sale may not come together. One of the most significant things that has an effect on the closing time frame is the buyer getting a mortgage.
A mortgage commitment can take anywhere from 3-5 weeks depending on the lender and how busy the real estate market happens to be at the time. Buyers go through a rigorous screening process before they are granted their mortgage approval. Home buyers will be asked to provide their lender with numerous documents showing they are worthy of getting the loan.
If a buyer does not need a mortgage and is going to pay cash for the property it can dramatically decrease the time frame for closing. Cash buyers are in the enviable position of closing rapidly. For some home sellers this is an attractive situation. Not only does it eliminate the fear of a buyer not procuring financing but it allows for a quick closing.
One of the things that still will need to be done even when purchasing with cash is a title search. The title search will ensure there are no encumbrances against the property. Things such as property liens for example.
Some of the other things that take place that can have some bearing on when a closing will take place is the home inspection and appraisal. If there are any glitches with these two important phases, it could potentially slow down the transaction. For example, if there are problems with the home that need to be resolved after the home inspection takes place, the time frame for closing could be affected.
In the article reference above from Maximum Real Estate Exposure, you will see everything you need to know about how long it takes to close both from a buyers and sellers perspective. Considering the importance of a closing time frame in a real estate transaction it will be worth taking a look.
If you have any questions on the time it takes to close, feel free to reach out for help.