How Long Does It Take To Close On A House?

From start to finish, the home buying journey takes time. How long it takes to close on a house – the final step in the journey – will depend on several factors, from your lender to the strength of your finances and credit history.

Home buyers should know what to expect from the closing timeline and common reasons for delays to best prepare for their closing date.

How Long Does Closing On A House Take?

Closing on a house can typically take 30 – 60 days. The average time to close varies based on loan type and the state of the housing market, but the variation is relatively small.

Closing in 30 days is ideal. But it’s usually only possible if the buyer’s financial readiness isn’t a barrier and no issues arise during the appraisal and inspection.

With careful organization and clear communication among the buyer, seller, and lender, you can speed up the time it takes to close on a home. This can potentially save you and the seller money and prevent unnecessary anxiety.

How Long Does Each Stage Of A House Closing Take? 

Closing on a house happens over several weeks, and stages are usually only carried out on business days. Keep in mind there might not be progress on weekends.

Application (1 Day)

Completing the loan application typically takes 1 day and can be part of the mortgage preapproval process. Be sure to complete your application as accurately as possible – errors or omissions can cause delays.

You’ll most likely need to fill out the following information on your application:

• Your name
• Social Security number
• Income
• The property’s address
• The estimated value of the home (provided by your lender)
• The amount you want for the mortgage home loan

Disclosure (Under 1 Week)

The disclosure stage typically takes a few days and is completed by the mortgage lender. The lender must supply the loan’s terms, including estimated monthly payments, fees, and other closing costs.

Documentation (Under 1 Week)

If you’re organized and can anticipate the information your lender will need, the documentation process may only take a few days. At this stage, the lender will request income and asset documentation. If your assets are complicated – for example, if you’re self-employed with several sources of income – it’s a good idea to communicate that to your lender. Have them tell you what paperwork they’ll likely need from you and when you should send it to help expedite the process.

Appraisal (1 – 2 Weeks)

Your mortgage lender will order a home appraisal that takes about 1 – 2 weeks to complete. A licensed expert will examine the home to determine its value. A home appraisal isn’t the same thing as a home inspection. Home inspections are typically optional and happen before getting an appraisal. And the home is inspected to uncover any damage or necessary repairs.

Underwriting (1 – 3 Days)

The underwriting process takes 1 – 3 days. During this process, underwriters evaluate your financial information. In doing so, they’ll verify that you meet all necessary guidelines to qualify for the loan.

An underwriter will confirm information about the property and examine information such as your:

• Income
• Savings
• Assets
• Debt
• Credit history

Conditional Approval (1 – 2 Weeks)

Even if your documents are confirmed to be in order after underwriting, you may receive additional requests for documentation. Requests for more paperwork typically occur during the conditional approval stage. Speak with your lender and have your documents ready to help expedite the process.

Clearance To Close (3 Days)

After you receive final clearance to close and the final disclosure of terms, you must wait for a mandatory 3 days before you can sign your final paperwork. During those 3 days, carve out time to review your loan terms and get any expert advice you may need before signing.

Closing And Funding (1 Day)

After you sign, there will be one last review of the documents and information by your lender. Following this, your mortgage will be formally recorded with your county.

How Long Does Closing Day Take?

An appearance at a closing day meeting should take no more than roughly 1 – 2 hours of a home buyer's time, barring any complications, discrepancies, or last-minute back-and-forth negotiations that may arise. Whatever the case, you typically won’t need more than the 2-hour window to tie up any loose ends and certify your purchase, marking the final steps to buying a house.

That said, bear in mind that closing windows can easily go over the allotted time if you aren’t prepared with everything you should bring to closing. Show up with valid personal identification, such as a passport or driver’s license, a copy of your Closing Disclosure, and a certified cashier’s check to cover closing costs. Also be sure to have conducted a final property walkthrough to make sure any outstanding concerns have been addressed before heading to the meeting.

Here are a few tasks you’ll complete on closing day:

Sign Documents

On the day of closing, when you show up to the designated meeting spot, you’ll be greeted by a large pile of legal documents that need your signature. The title company handling the closing should take the time to walk you through each document and its meaning, as well as any credits, expenses, or figures presented. Many of these documents are legally binding agreements, so you must read through them to ensure they’re error-free and you fully understand all terms. Be sure to ask if you have any questions that arise.

Closing documents typically include:

• The promissory note: The promissory note outlines the financial terms of your loan and serves as your agreement to repay the entire loan amount.
• The mortgage note: Similar to your promissory note, the mortgage note outlines the terms of your mortgage, such as the down payment and the total loan amount.
• The escrow disclosure: This disclosure provides escrow account details and how much you can expect to pay each month, including taxes and insurance fees.
• The deed of trust: Also known as a security instrument, a deed of trust agreement transfers a property’s legal title to a trustee on the lender’s behalf. The trustee holds the title until the mortgage is paid off.

Pay Closing Costs

Closing costs are the fees that you owe your lender in exchange for originating and processing your mortgage loan. The expenses are due for most home buyers at the time and date of closing. The total cash you’ll need to close will vary depending on what your lender charges and any agreements between yourself and the seller, but expect to see some of these charges on your Closing Disclosure:

• Application fees for processing your loan
• Closing fees that cover the time a lender’s representative spends at closing
• A loan origination fee for processing your loan application
• A year’s worth of homeowners insurance fees
• Home inspection fees
• Title insurance coverage

Transfer The Home Title

Upon completing all paperwork and payments, you’ll end your closing meeting with the transfer of the home’s title into your name, making you the official new homeowner. A house title represents all the legal rights that are conferred around ownership and the use of a residential property. It’s important to note that various laws, easements, liens or homeowners association (HOA) rules can limit these rights. This title will be recorded with the county and state so there’s a copy of your purchase in the official records.

Reasons It Could Take Longer To Close On A House

Closing on a house can be delayed for a variety of reasons. Get familiar with some common causes of delay to anticipate and avoid any issues that may arise.

Low Appraisal Value

Appraisals help ensure that you pay what your new house is actually worth. If your appraisal comes in lower than the home's sale price, your lender may need to decrease the amount you can borrow so they’re more likely to recover their investment in case of foreclosure. Other options include the seller considering a lower selling price or your lender requesting a second appraisal. All of these options will likely lengthen your closing timeline.

Issues On The Buyer’s End

Issues on the buyer’s end can also cause closing delays, including:

• A change in employment status like retirement or changing jobs
• One or more missed payments on a current mortgage
• New debts opened during the loan process
• The buyer’s failure to deposit the down payment in a savings or checking account with enough time for the money to be verified
• Issues with a buyer’s credit report
• An incomplete loan application
• Delinquent debts or credit usage above the recommended 20%

With planning and support from professionals, such as your lender and real estate agent, you can resolve many of these issues before they delay closing. Buyers must juggle many tasks before they reach the closing table, but you should feel empowered knowing many of these common delays are preventable.

Issues On The Seller’s End

Some delays can come from issues on the current homeowner’s end, including:

• Repairs not completed as agreed or issues discovered during the final walk-through
• Complications revealed by a title company’s title search
• Liens on the property

Issues On The Lender’s End

Inexperienced loan officers can cause delays. That’s why it’s important to choose your lender carefully. If possible, request a dry closing to schedule the transfer of funds after your paperwork is signed and completed. A dry closing may help you avoid additional delays caused by an inexperienced lender. You’ll need to get the seller’s permission first to use this strategy.

How To Help Speed Up The Home Closing Timeline

While a closing timeline ultimately comes down to your agreements and understandings with a seller, and your chosen financial lender’s (if any) workflows and internal mandates, there are certain steps that you can take to help speed up the process. A few sample actions that are within your power to control here include:

1.  Utilize an experienced and knowledgeable real estate agent.
2.  Respond in timely fashion to any requests from your mortgage lender.
3.  Stay flexible in terms of closing date and time in case any shifts are needed.
4.  Read through and review closing documents before day-of meetings.
5.  Don’t wait until the last minute to obtain the cash needed to close.
6.  Make sure you proactively tackle any credit issues that may arise before closing.
7.  Stay consistently applied – don’t quit or change jobs beforehand.
8.  Have a paid homeowners insurance policy in place prior to closing.
9.  Account for any power of attorney arrangements ASAP if you’re unable to attend.
10.  Conduct your final property walk-through as early as possible.

The Bottom Line: What You Can Do To Make Closing Day Easier

While the home closing process usually takes 30 – 60 days, you should be prepared to close as quickly as possible. Although some delays are unavoidable, you can do your part to ensure a seamless closing by paying down your debts, responding quickly to your lender's requests, preparing all the required signing documents, and depositing the down payment on time.

Want to stay on track for your closing date? Getting started early can help you stay on track with your home buying timeline. Start an application online today.