How Long Does it Take to Close on a Home

‘Available immediately’ may sound like you can sign a paper and move into your new home, but the closing process needs time. Exactly how it will take varies greatly, but having a good closing lawyer will help to speed it along.

The Closing Process

The basic requirements for the closing process are for the contract terms to be met, the seller depositing the property deed, and then the buyer depositing the funding for the purchase. Every party involved will have their own contract requirements to meet in order for the sale to close.

The typical requirements include:

  • All necessary papers must be signed – consult your closing lawyer for details
  • Seller obligations must be met – usually receipts, certifications, repairs, and inspections
  • Buyer inspections – usually a home inspection, appraisal, and final walk through (or waivers)
  • Earnest money and full loan approval
  • Transfer of all funds and the deed

Home Closing Time Frame

There are a lot of variables that factor into how long your home’s closing will take. Typically speaking, the further into the loan approval process the buyer has gotten, the faster the lender will be able to close the sale.

For instance, loan preapproval involves the lender verifying a lot of the necessary information before the contract is signed, whereas loan pre-qualification only requires a basic amount of information about the buyer. In the former instance, closing can be processed quickly, usually within 1 to 2 weeks. In the latter, however, lenders still needs to collect and verify items such as credit reports, employment information, and banking information, and can be expected to take approximately 30 days.

Some special loans, particularly first-time home-buyer deals that involve help with the down payment, can take a bit longer to close, occasionally up to 45 days.

Home Closing Delays

It can be terrifying for a homebuyer to wonder up until the last second whether or not their loan will be approved. Ensuring that you’re as fa along in the process as possible when the papers are signed helps, although it’s ultimately the underwriter that determines whether or not your loan will go through. Some typical delays that you may see after your file is handed over to your underwriter are:

  • New debts or errors on the updated credit reports
  • A change in marital status for either the buyer or seller
  • Missing insurance or banking information
  • Problems with the appraisal(s)
  • The loan commitment with the lender has already expired
  • Judgements, liens, or clouds on the title

Contact a Boston Closings Lawyer

As early in the process as possible, contact your Boston closings lawyer. They will be able to answer your questions, help you understand the paperwork and your obligations, and see that your closing goes smoothly.