Closing on a House: How Long Does it Take and How to Speed Up the Process
The process of closing on a house can be a daunting task for many home buyers, but with the right preparation and knowledge, it can be done in a timely manner. According to recent data from ICE Mortgage Technologies, the average time to close on a home purchase loan is 49 days. However, some borrowers have been able to close much faster, in as few as 30 days or even less.
During the pandemic, closing times increased due to the high demand for new home loans and refinance loans driven by record low mortgage rates. As rates return to historic norms, home buyers in 2024 could potentially reach their closing day sooner. Additionally, there are steps that borrowers can take to speed up the closing process.
Closing times vary by loan type, with conventional loans taking an average of 48 days, VA loans taking 57 days, and FHA loans taking 54 days to close. Refinance loans tend to close faster than home purchase loans, with conventional refinance loans taking only 44 days on average compared to 52 days for conventional home purchase loans.
Buyers who pay cash for their new home typically close faster, but even with cash transactions, it can take at least a couple of weeks to close. Most buyers rely on mortgages to purchase their homes, and while a mortgage-financed home won’t close in two weeks or less, there are ways to expedite the process.
By being prepared for the home buying process, borrowers can speed up their closing dates. This includes having plans for the down payment, responding quickly to lender requests, and resolving any conditions that may come with the initial approval. Buyers who are preapproved when making an offer and stay in close contact with their mortgage lender have the best chance of closing quickly on a house.
The closing process involves various steps such as opening an escrow account, getting a home inspection, performing title work, finalizing the mortgage loan, making the down payment, paying closing costs, doing a final walk-through, and signing the closing documents. Each of these steps can take anywhere from a few days to a few weeks, and any delays can prolong the closing timeline.
Overall, being prepared, responsive, and proactive can help buyers close on a house in a timely manner. With the right approach and understanding of the process, closing on a house can be a smooth and efficient experience for home buyers.
