How Long Does the Closing course of action Take on a Piece of Real Estate?
Real estate can refer to a house, a piece of land, or a commercial character. Each form of real estate has its own closing course of action that completes the sale. Today, let’s talk about closing on a house sale. How long does it take to close on a house?
The short version
The shortest answer is “potentially” under two weeks – if you are paying cash.
For everyone else, the answer is, “when the lender is ready to close.” When you are financing the buy of a home, the time of action can take between 30 – 45 days.
The long version
The actual “closing” occurs when all the elements of the sales transaction have been completed and you have successfully reached close of escrow. A number of steps must be taken to unprotected to close of escrow. Here is a summary of the steps:
- go into into escrow and open an escrow account. This is achieved when you and the seller have signed a buy agreement on the house and your agent collects your earnest money check. The agent will place your check in an escrow account with an escrow company as stated in the buy agreement.
- Bank appraisal. The bank that provides your mortgage will position for an appraisal of the character.
- Financing is secured. Provide the new character address to your lender who will issue a “good faith calculate” that states your loan amount, the interest rate, closing costs and any additional costs related to the buy.
- Seller disclosure approval. The seller should provide written notification of obvious problems already identified by the seller or seller’s agent.
- Inspections. Buyers should always have an inspection completed when purchasing a home. Lenders may require a pest inspection in addition to the character inspection.
An environmental inspection might also be advised, especially if the area on which your new home stands is located near a landfill, a gas stop, ordnance range or depot, former oil field or other such environmentally hazardous condition or industry; the environmental inspection will also check for toxins in the home itself (especially for mold and asbestos).
- danger insurance. You will be required to acquire and continue danger insurance until the mortgage is paid off.
- Title report and title insurance. These are required by the lender.
- Complete a final walk-by. Take one last walk by your new home to ensure it is as you saw it, everything that was agreed upon (appliances, fixtures) is in place, and that no damage has occurred since you last saw the character.
- HUD-1 form review. You should receive a HUD-1 form at the minimum one day prior to closing (or a final statement of loan terms and closing costs). It should be compared with the good faith calculate you signed. Carefully examine the HUD-1 form for any errors in addition as unexpected, excessive, or unnecessary fees.
- Close escrow. This will be the appointment at which you and the seller sign more paperwork. When all documents have been reviewed and signed by both parties, the escrow officer prepares a new deed (with you named as the character’s owner) and that deed is sent to the county recorder. You provide a cashier’s check or wire move that pays the down payment and closing costs; the lender will wire your loan funds to escrow for payment to the seller.
Can it be done in 30 – 45 days?
As you can see, there are many steps that must be completed before your realtor can hand the keys of your new home to you. Review the steps of the time of action with your realtor and promptly provide all requested documents and information requested. Any incomplete or inaccurate information can considerably delay the close of escrow.
Additional information on the closure course of action is obtainable by your agent and online. Although it may seem slow and complicated, these steps are put in place to protect the seller, the lender, and you. The moment when the keys are handed over to you is sweet. Enjoy it – and your new home!