However, some mortgage lenders promise speedy closing timelines, as fast as seven to 10 days in some cases. The fastest closing timelines are typically when the buyer pays cash and can skip the appraisal process. Your best bet? Budget for a 45-day closing process, from accepted offer to closing day.
Closing in 30 days is ideal, but it's usually only possible if the buyer's financial readiness isn't a barrier and no issues arise during the appraisal and inspection. With careful organization and clear communication among the buyer, seller and lender, you can speed up the time it takes to close on a home.
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.
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.
A good rule of thumb is to expect the sale process to take 15-20 weeks from when you find the right home. But it varies depending on a number of factors. It could be as quick as six weeks and it could take up to six months.
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.
“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.
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.
15-day Quick Close is available on Conventional Loans for borrowers purchasing or refinancing their primary residence.
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.
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.
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.
Use pre-approval to speed up closing time
Often, a pre-approval can speed up closing by a week or more. This is possible because of the role which a pre-approval plays to a lender. Mortgage pre-approvals are dry runs: approvals based on an expected set of loan criteria which will eventually go to closing.
The timeline between making an offer and closing a sale can vary. For home purchases financed with mortgages, the average time to close is 44 days, according to ICE Mortgage Technologies, a mortgage advisory and technology platform. Closings can be as quick as 30 days, though, especially in all-cash deals.
Closing dates are outlined in the purchase contract. Most closing dates are open to negotiation, but some are set in stone, so check your contract to see if you can even make a change. “A typical purchase contract says 'Closing on or before X date unless a change is mutually agreed upon by both parties,'” says Hardy.
The average closing process takes 30–60 days, but the timeline can vary based on a variety of factors, such as market conditions and buyer readiness. According to recent data from ICE Mortgage Technology, the average time to close on a home purchase was 43 days.
On closing day, one of the first things you should do is pack for your move, if you haven't already. Depending on how long you've been in your current house and how many possessions you've accumulated, boxing everything up may be a Herculean task.
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.
A good way to remember the documentation you'll need is to remember the 2-2-2 rule: 2 years of W-2s. 2 years of tax returns (federal and state) Your two most recent pay stubs.
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.
However, keep in mind that this is only a rough average. Numerous factors can affect the speed with which you buy a home, depending on your circumstances and the market. For example, if a buyer has the cash and produces evidence of finances, an all-cash offer can be accepted in as little as two weeks.
Time taken: five to 14 weeks
A hot market means homes are selling quickly and there's plenty of demand from buyers. At the moment, you can expect to receive an offer in around 38 days, according to our data. A cold market means homes are taking a while to sell and there are few buyers around.
Most first-time homebuyers make a purchase when they are 35. Buying a house at a young age can mean building equity young and getting a home paid off sooner. Purchasing a house in your 20s or earlier can also mean you feel trapped, unable to move at a moment's notice.