Buyers and sellers will have to go through the closing process. How long does the process take and how can you avoid common delays in closing?
Whether you plan on buying or selling a home, once an offer has been submitted and accepted, you will have to go through the closing process.
How long does the closing process usually take? The first thing to keep in mind is that as a buyer, being pre-approved carries far more weight than being pre-qualified. Those who are pre-approved are often in a position to close sooner.
However, getting pre-approved is a process all its own. The pre-approval process involves verification of certain items up front before any kind of contract is made or signed on the home.
Once a lender has verified the buyer’s employment, bank account, and credit report, closing can go as quickly as an underwriter can process the paperwork and review the appraisal. Generally, that only takes a week or two. If a document is missing from the file, such as a preliminary title report or a seller’s condition of sale, the closing process could take longer.
“First-time buyer programs with down payment assistance take longer to close. “
Typically, most federal mortgage loans close within 30 to 45 days. Special first-time buyer programs, particularly those with down payment assistance, might take 45 to 60 days to close. That’s because those loans require approval from an additional underwriter.
Delays during the pre-approval process usually fall on the buyer, but there are a few other delays that you need to look out for:
- The appraisal comes in low.
- Additional debt is found.
- There are mistakes on the buyer’s credit report.
- New liens or judgments get filed against the buyer.
- The title is not free and clear.
- The buyer or seller has updated bank statements.
- Expired loan or program commitment.
- Buyer or seller gets married.
- Required insurance information is missing.
The closing process can go very smoothly if you are prepared, so make sure that you talk to your lender and a professional Realtor to avoid delays and snags along the way. You can read more about the home closing process here.
If you have any other questions about the closing process or about buying or selling a home, just give me a call or send me an email. I would be happy to help you!