Closing on Your Home

Buying a house can be a process and depending on your timeline can take months. Looking for a home is where most of your time is spent. After that, there is sometimes a back and forth, counter offers, or maybe the seller goes with another offer. While that process can feel like forever, once your offer has been accepted by the seller things are usually more predictable. The timeline for closing on a home can vary depending on a variety of factors such as the complexity of the transaction, the responsiveness of the parties involved, and the requirements of the lender. However, here are the basic steps for all closings.

Basics Steps Before Closing

  1. Purchase Agreement: This is when both the buyer and seller formally agree on the purchase price and to move forward with the transaction. (1-2 days)
  2. Home Inspection: At this point the buyer can schedule a home inspection. It is optional but highly recommended. Check out our blog post about it HERE! (1 week)
  3. Loan Origination: When you started the process you were pre-approved for a home loan. Now it’s time to apply for that mortgage loan application. (2 weeks)
  4. Home Appraisal: This is required by the lender when using a VA Loan. Certain states require appraisals as well. While the appraisal itself doesn’t take very long, completing the processed paperwork can take some time. (2 weeks)
  5. Insurance: You’re often required to pay for the first year of insurance premiums along with your closing costs. There is also title insurance, which protects you from claims on the home prior to your purchase. (1 week)
  6. Loan Approval: This process starts with pre-approval and includes underwriting. The lender wants to make sure you will be financially able to make your monthly payments. This process can sometimes take up to 30 days. 
  7. Closing Disclosure: The disclosure is one of the final pieces. After you provide the lender with all of your financial information, they will in turn give you the closing disclosure. This outlines everything that must be paid to the seller.
closing timeline

Almost There!

After the discourse is given and reviewed – and sometimes an additional review of your finances by the lender – you are ready to sign your closing papers. While this may seem like a lot of steps, some of them are going on concurrently.

If you are pre-approved for a loan before you start shopping, you can kickstart the approval process. Since so many parties are involved: lender, appraiser, home inspector, etc. there are a lot of things to juggle and schedule. Most homes close in 30-50 days start to finish. You can be proactive by finding an agent and lender. Your agent can likely recommend appraisers and home inspectors to be ready for when that time comes. Keep this timeline in mind, so you’re not surprised by a more than 30 day closing.

Signing Day

On the day of the closing, you will typically meet with the seller, the seller’s agent, your agent, and a closing agent. You will be required to pay (usually with a cashier’s check or wire transfer) your down payment and closing costs at this time. During the closing, you will sign a number of documents, including the mortgage note, the deed, and the settlement statement. Once all of the documents are signed and the funds have been transferred, the property will officially be yours. This is usually a 1-2 hour scheduled appointment.

All loans typically have a closing time limit. According to the Department of Veterans Affairs (VA), lenders should strive to close VA loans within 30 days of receiving a completed loan application. However, it’s important to note that this is a guideline, and the actual time it takes to close a VA loan can vary depending on a number of factors, such as the lender’s workload, the complexity of the loan, and the time it takes to obtain necessary documentation.

As with any endeavor, looking ahead, and being organized will help the process go more smoothly. Ready to start the house hunting process? Let us match you with an experienced agent to find your home!

Looking for a military-friendly real estate agent in your area to buy or sell a home? Click here to fill out our Military Real Estate Questionnaire and we will help find you an agent that is a great fit or send a us a message.

Looking for a military-friendly real estate agent in your area to buy or sell a home? Click here to fill out our Military Real Estate Questionnaire and we will help find you an agent that is a great fit or send a us a message.