It typically takes between 40 and 45 days to close on a house after making an offer. However, every situation is different — some lenders offer faster closing times, certain types of mortgage loans tend to take longer, and there could be delays, such as a low appraisal, that slow down the process.
On average, closing on a house in California can take anywhere from 30 to 45 days, post-acceptance of an offer. This timeframe is fluid, influenced by the factors mentioned earlier. Each step, from financing approval to inspections, plays a crucial role in the overall timeline.
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.
The bank needs time to push a short sale through. If you have a 15 day escrow, you can walk if they don't close in time and they won't be able to close that quickly. 45 days gives them more time to get their shit together and locks you into the deal.
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.
Can a mortgage be denied after the closing disclosure is issued? Yes. Many lenders use third-party “loan audit” companies to validate your income, debt and assets again before you sign closing papers. If they discover major changes to your credit, income or cash to close, your loan could be denied.
Another way to speed up the closing process is to prepare your documents in advance and keep them organized. You will need to provide various documents to your lender, such as bank statements, tax returns, pay stubs, identification, and proof of insurance.
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.
The contract terms will determine when you can move in after closing. In some cases, it will be immediately after the closing appointment. You will receive the keys and head straight to your new home. In other situations, the seller may request 30, 45 or even 60 days of occupancy after the closing of the home.
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.
Making a cash offer on a home can speed up the process. On average, a cash sale can take just one to two weeks to complete because you can skip both the appraisal and the mortgage underwriting, which make up the bulk of the closing steps.
Title report issues are the most common reason for closing delays. Some sellers are completely unaware that there were previous liens on their property and buyers face the frustration of waiting out these sometimes complicated resolutions.
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.
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.
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 closing date is set after your mortgage loan has been approved and you accept the commitment letter. Your agent will coordinate this date with you, the seller, your lender, and the closing agent.
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.
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.
Can My Security Deposit Be Returned If My Mortgage Is Denied At Closing? If you have a contingency in place that includes an offer and purchase contract, you may be able to get your earnest money back. However, if you don't have it, you could lose it.
“Clear to close” means you've met your mortgage lender's requirements and conditions and are ready to finalize your home purchase. Think of it as getting the green light from your lender.
A closing may fall through for many reasons, including title-insurance surprises, buyer financing rejections, inspection failures, and lowball appraisals. Even buyer's remorse can sour a deal.