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.
While closing delays are uncommon, they can still happen because of unique circumstances. Staying in touch with your mortgage banker and real estate agent can help you prepare for and even avoid any potential delays or hiccups.
Failure by one of the parties to perform on the closing date will constitute a material breach of the contract and may result in the forfeiture of the down payment.
Typically, this date is set at the time the contract is signed and is often 30-60 days from the agreement date. A real estate closing involving a mortgage takes a minimum of 30 to 45 days to complete. However, various factors can necessitate a change.
Both buyers and sellers can request new closing dates. So if for whatever reason you want to move the closing date (whether you're a buyer or seller), how do you go about making that request? You need to check in with the other parties involved in the sale, to start.
In most contracts, both parties must agree to any extension unless the contract specifies that one party has the right to extend unilaterally under certain conditions. The contract may specify penalties for failing to close on time or remedies if the other party is at fault for the delay.
In many cases, there is no universal or typical specific penalty for a seller missing the closing date. It usually depends on what's outlined in the purchase agreement. This can range from withholding funds held in escrow to facing legal action for specific performance or damages.
Closing Dates and Interest Payments
If you're closing on the last day of the month, you're not going to get hit with a big interest bill. But if you close near the beginning of the month, you'll have to pay more in interest.
Unfortunately, there's no limit on the number of times a buyer can ask for an extension on the closing date. And if your buyer continues to ask for extension after extension, your patience may reach the end of its rope.
“If all of the buyer's legitimate deadlines have expired and the buyer is considered to be in default of the contract, the seller can elect to keep the earnest money as liquidated damages and agree to cancel the contract,” says Horner. “Or, the seller can elect to sue.”
Closing on a house takes roughly 30 to 60 days from the time your offer is accepted to taking ownership of the house.
The seller, however, may not be able to lawfully terminate the sale based on the contract. If you have a good reason for missing the closing date, the courts will usually decide in your favor and grant a reasonable postponement, giving the buyer an extra 30 days to complete the transaction.
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.
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.
Negotiating a delayed closing
Instead, both parties usually negotiate a new closing date. As a seller, you can set a new deadline by sending a notice. If the buyer still fails to close by this new deadline, you can consider backing out of the contract.
Your lender is required to send you a Closing Disclosure that you must receive at least three business days before your closing. It's important that you carefully review the Closing Disclosure to make sure that the terms of your loan are what you are expecting.
From the time the contract is accepted, the closing process will generally take around 60 days. If something comes up in that time that leads one or both parties to want to reschedule the closing, that can be done, but it requires coordination and agreement from all parties involved.
Some contracts build in leeway around closing with phrases such as “on or about” a particular date while others allow for a “reasonable” extension of 10 to 30 days, depending on the circumstances.
Closing date is negotiated between the two parties (seller and buyer); usual tends to be between 30-45 days, can be different.
A title and escrow company can be ready for your closing any time, day or night, after hours, or even on weekends. Of course, finding a closing company willing to work outside office hours or on weekends is the key.
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.
Take care of any pending tasks: Use the waiting period to take care of any pending tasks such as getting home insurance, setting up utilities, and notifying your bank and other important contacts about your change of address.