How long does it take to close on a house?

After you've found a home and signed a purchase contract, the process of closing begins. It can take up to two months to close on a home because buyers and sellers have to meet certain obligations leading up to the official closing day. 

Here's an overview of what happens during closing and the delays that could derail your timeline.

How long does closing on a house take?

Closing can take anywhere from 30 to 60 days. In 2023, the average time to close on a house purchased with a mortgage was 44 days. Conventional loans took 47 days to close, and FHA loans took 51 days to close. Closing on refinance loans took 51 days for conventional loans and 52 days for FHA loans. Closing happens faster when you buy a home in cash because you don’t need to get mortgage approval. 

How long does closing day take?

On the official day of closing, the buyer and seller will finalize the transaction. The closing day appointment should only last an hour or two, if that. You'll sign the final paperwork and documents, which include the closing disclosure, a deed of a trust, and promissory note. Depending on where you live, either an escrow officer, title agent, or real estate attorney will be there on closing day to guide you. 

→ Find out whether sellers need to be present at closing

What happens during closing

Once a home is under contract, there are a few more things that need to be taken care of before the sale is official and you can close on a home. This includes opening an escrow account and getting a home inspection to get a better idea of the home's condition. 

If the inspection raises any issues, the buyer and seller will negotiate necessary repairs — including whether the seller fixes the issue or covers them as seller concessions, which are a credit toward the buyer’s closing costs.

At the same time, the buyer needs to complete their mortgage application if they’re getting a home loan, as well as purchase home insurance. The mortgage lender will then order a home appraisal to make sure that the property is worth the purchase price.

The title company, which handles transferring ownership of the house to the you, will conduct a title search and work with your real estate agent to set a closing date. 

A few days before closing day, the buyer will do a final walk-through of the home.

Why does closing on a house take longer?

There are a ton of moving parts to the closing on a house. Unsurprisingly, there are also many issues that could pop up along the way and cause closing delays. Here are some of the most likely culprits:

• ‍Financing issues: The mortgages underwriting process may turn up problems, like a dip in the buyer's credit score The lender may re-assess the loan terms or require additional documentation, which may affect when the loan will close.‍
• Low appraisal: The mortgage lender will not lend a buyer more than the home's appraised value. When this happens, the buyer will either have to renegotiate the purchase price with the seller, pay the remaining balance out of pocket, or walk away from the sale if they have a contingency.‍
• Inspection flags: The home inspection will flag issues in the house that need repairs, kicking off another round of time-consuming negotiations between the buyer and seller.‍
• Title problems: In some cases, the title company may find liens, unpaid taxes, or other issues that could potentially affect ownership of the home. Clearing the title can be time-consuming, especially since it can involve jumping through legal hoops.

→ Learn how to get your mortgage from clear to close

How to close faster on a home

How quickly you can close on the home depends on market conditions. Here are tips to move up your closing date:

• For buyers: Get pre-approved by your lender before making an offer to help speed up the application process. This step will require preparing your financial documents beforehand. Also be decisive and communicative, especially during negotiations. Otherwise, the back and forth between you and the seller can take up a lot of your time.
• For sellers: Ordering a preliminary title report, or getting an inspection before listing your house could prevent surprises down the road. 
• For buyers and sellers: Getting rid of contingencies, like allowing the buyer to back out if they can’t sell their existing home, means there won’t be anything holding up the home sale.

If you're buying a new home and selling your current one at the same time, Orchard can streamline the closing process. We'll help you make a strong, non-contingent offer to buy your next home, then sell your current home for top dollar. That way, you can eliminate the stress of lining up your closing timelines so you can focus on finding your dream home.

FAQs

Here are more details about the house-closing timeline.

How can I expedite the closing process?

Expediting the closing process involves proactive steps and efficient coordination. First, ensure you have all necessary documentation ready and complete, such as financial records, inspection reports, and insurance policies, to prevent delays in document verification. Second, maintain open and clear communication with your real estate agent, lender, and other parties involved, promptly responding to requests and inquiries, as this can help resolve issues swiftly and move the process along more quickly. Lastly, consider working with an experienced real estate attorney or a title company, as their expertise can help navigate potential roadblocks and streamline the closing process. Additionally, a cash offer closes faster than a financed offer.

Related: What's the worst day to close on a house?

Is a faster closing always better?

While a swift closing can be advantageous for buyers and sellers eager to complete the transaction, it may not allow sufficient time for due diligence, potentially leading to overlooked issues. It's essential to strike a balance between speed and thoroughness to ensure all aspects of the sale, including inspections, financing, and legalities, are adequately addressed to avoid future complications.

How can I stay informed about my closing time?

To stay informed about your closing timeline, maintain regular communication with your real estate agent and lender. Request updates at key milestones, such as after the inspection, appraisal, and loan approval. Additionally, consider using digital project management tools or apps that can help track and organize the various steps and deadlines in the closing process, ensuring you're aware of any potential delays or issues as they arise.