It is important to note that while average closing times might be 47 days for a purchase and 35 days for a refinance, most loans will actually take between 30 days and 75 days to close.
Closing on a house can typically take 30 – 60 days. According to ICE Mortgage Technology, as of August 2024, the average time to close on a home purchase was 43 days. The average time to close varies based on loan type and the state of the housing market, but the variation is relatively small.
As little as two weeks. Nearly one-third of homes in the U.S. are bought with all cash. If a buyer has the cash available and provides proof of the funds, buying a house with an all-cash offer can happen in as little as two weeks.
A cash deal might close in as few as two weeks because you can skip the lengthy mortgage and appraisal process. Closing day — when you sign your final paperwork and buy the home — usually takes one to two hours if everything goes smoothly.
15-day Quick Close is available on Conventional Loans for borrowers purchasing or refinancing their primary residence.
Timing Requirements – The “3/7/3 Rule”
The initial Truth in Lending Statement must be delivered to the consumer within 3 business days of the receipt of the loan application by the lender. The TILA statement is presumed to be delivered to the consumer 3 business days after it is mailed.
The fastest you can close on a house is seven to 10 days. This is rare, but there are a few mortgage lenders that offer super-fast closing times.
“In some cases, you can close earlier if you are willing to pay for a rush appraisal or if you work with your loan originator to be fully preapproved prior to executing your real estate contract,” Tolbert adds.
Switching your roof isn't a quick process, either. It usually takes about four to six weeks for an easy, shallow-pitched roof. If you use a more complicated design, expect it to take even longer.
Though typically a mortgage lasts for around 25 years, you can get longer mortgages over 40 years. At the other end of the scale, short-term mortgages can be for as little as six months to two or five years. Lenders have their own minimum terms which vary from no minimum to a 15-year minimum.
Some buyers may be able to negotiate an immediate possession date. This means as soon as the transaction is closed and the deed is recorded, the buyer can move in. A few other common buyer possession dates may be 15 days, 30 days, 60 days, or even 90 days after closing, depending on how much time the seller needs.
It usually takes between 30 to 60 days for an escrow to close. Sometimes the escrow timeline can be shorter or longer.
The three-day period is measured by days, not hours. Thus, disclosures must be delivered three days before closing, and not 72 hours prior to closing. Note: If a federal holiday falls in the three-day period, add a day for disclosure delivery.
Quick close homes – also called spec homes, quick move-in homes, quick delivery homes, inventory homes, market homes, or immediate occupancy homes – are homes that begin construction before they're under contract to a buyer. It may seem odd that a homebuilder would begin construction on a home without a buyer.
It is technically possible to close on a home in 30 days, or even less, particularly if you are paying all-cash rather than getting a mortgage or dealing with a homebuying company or iBuyer. But in general, according to data from ICE Mortgage Technology it takes about 44 days to close on a home.
During the contract negotiation phase, you (the buyer) and the seller set a closing date, which must be listed on the purchase agreement contract. After the seller accepts your offer and earnest money—money given to secure the contract—you'll likely wait a while before your actual closing date.
Timeline: 1 day to 2 weeks
It takes one day to two weeks for contracts to be exchanged and then the sale to complete. But it's not unknown for people to exchange and complete on the same day. Completion day is when when ownership is transferred from seller to buyer and you can move into your new home. And that's it!
The Federal Housing Administration (FHA) mortgage journey, from the final offer to the closing day, typically takes 30 to 45 days. Some sources report up to 44 days is common at press time, though your experience may vary.
Let's look at how long it takes to close on a home. Key Takeaways: The process of applying for and closing on a mortgage contains several different steps and typically takes anywhere from 30 to 45 days. Your closing can get delayed if there are issues with the appraisal, inspection, title or financing.
The Rule of 28 – Your monthly mortgage payment should not exceed 28% of your gross monthly income. This is often considered the “Golden Rule,” and many lenders abide by it.
The TRID rule provides that the borrower can waive the seven-business-day waiting period after receiving the LE and the three-day waiting period after receiving the CD if the borrower has a “bona fide personal financial emergency,” which requires closing the transaction before the end of these waiting periods.
Capacity, Credit, and Collateral
The three C's of underwriting play an essential role in the underwriting process. Regarding Capacity, your debt-to-income ratio is the most important component. Ideally, you would like your DTI ratio to be at or below 40%. There are home loan programs that allow up to a 50% DTI ratio.