The reason it takes so long is because of the timeliness of orders and the speed of bank underwriting.
After months of shopping, negotiating and financial plot twists comes the resolution: You sign the final mortgage papers, get the keys to the house and officially become the new owner. Signing the paperwork on closing day takes about an hour or two, but the process to get there is much longer.
Every real estate transaction is different, so it's difficult to predict exactly how long your closing will take. The average is 54 days, but the process could take more or less time depending on factors like your loan type, how busy inspectors and appraisers are in your area, and what the title search uncovers.
How Long Does it Take to Close on a House? 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.
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.
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.
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.
The duration can vary, but sellers do not typically stay more than two months after closing. This is because most mortgages require the new owners to be moved in within 60 days after closing. During this time, legally is a licensee of the home, not a tenant, and does not hold the same rights as a tenant would.
Cleared to Close: After satisfying all conditions and receiving final approval, you reach the "cleared to close" stage, which usually takes around three days. Closing and Funding: The closing and funding process typically takes about one day.
Though it's rare (73% of contracts close on time, and only 5% of contracts never make it past closing day), there are also other reasons that a home's sale can fall through on the closing day, including cold feet, title issues, and unfulfilled contingencies.
Both buyers and sellers typically pay closing costs, and the amount can vary depending on several factors, including the price of the home, the sort of mortgage the buyer gets, which state the home is located in and more.
What Happens at Closing? On closing day, the ownership of the property is transferred to you, the buyer. This day consists of transferring funds from escrow, providing mortgage and title fees, and updating the deed of the house to your name.
On average, the entire process should take between 6 and 12 weeks to complete once you've found your dream home. This start point is very important. Finding your dream home is likely to be the longest part of the process. It can easily take as long as a year depending on your budget and where you want to live.
Each situation is different, but underwriting can take anywhere from a few days to several weeks. Missing signatures or documents, and issues with the appraisal or title insurance are some of the things that can hold up the process.
Can sellers stay in their house after closing day? Yes, sellers can stay in their house after closing day as long as all parties in the real estate transaction agree to a post-occupancy agreement in the purchase contract.
“The rudest thing is if you're purposely staying past close,” Calle said. “I would never stay an hour after closing,” Whitlow said. Just because you are not being kicked out doesn't mean your continued presence is welcome.
Reversing a real estate sale in California is typically challenging, as contracts for the sale of real property are legally binding once signed by both parties. However, there are specific legal grounds under which a sale can potentially be reversed or rescinded.
In most cases, the final walk-through is scheduled within 24 hours prior to the closing date. Your real estate agent can help you set a time with the seller's agent when you can be sure the property will be accessible and (hopefully) vacant.
This three business-day rule was introduced in October of 2015, and it applies to both original mortgages and refinancing. When your three business-day waiting period starts is determined by your consummation day. This three business-day rule may include Saturdays, but it does not count Sundays or holidays.
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.
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.
On closing day, you'll sign a stack of documents, pay closing costs and receive the keys to your house. Several issues can delay closing, including a low home appraisal, failing to get financing, unmet contingencies and title issues.
How long after closing until I get my money? If you chose to get paid via wire transfer, you can expect the funds to be available in 1-2 days. If you chose to be paid by physical check, it could take a few days longer.