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The process of closing on a home usually takes 30 to 60 days, from the time the offer is accepted to the time the keys are handed over. During this time, buyers, sellers, lenders, title companies, and agents all need to work together to do inspections, finalize financing, and transfer ownership. Buyers have to pay a lot of money, including earnest money deposits of 1–2%, appraisal and inspection fees of $800–1,000, down payments of 3–20% of the purchase price, and closing costs of 3–6% of the loan amount that must be paid by cashier's check or wire transfer. Knowing what you need to do, like locking in your mortgage rates within 30 to 90 days, doing final walkthroughs to make sure the seller did the repairs, and going over the closing disclosures three days before signing, will help you avoid delays and make the transition to homeownership go smoothly.
AmeriSave offers 90-day rate locks that keep your interest rate from going up during your closing period. This gives you peace of mind if rates go up while you're buying a home.Three days before closing, you must review the closing disclosure. Lenders are required by law to give you this five-page document that lists the final loan terms, interest rates, monthly payments, and fees so you can check it against the original loan estimates and fix any mistakes right away.Title companies help with important closing tasks by searching for ownership disputes and liens, providing insurance to protect both parties from title problems, managing escrow accounts that hold earnest money, helping people sign documents, and recording deeds with county governments.Last walk-throughs Confirm the condition of the property before signing to make sure the sellers have taken all of their things except for what was agreed upon, and to make sure the home is in the same condition as when you signed the purchase agreement.It is very important to be financially stable during closing in order to get approval. This means you should not change jobs, make big purchases, or take out new loans until after closing. This is because lenders check your employment and finances right before closing, and any changes could stop your mortgage approval and delay or cancel the transaction.If the home-buying process is a marathon, then closing is the marathon's final mile -- but with hurdles between you and the finish. The good news? The finish line is indeed within sight. And armed with a bit of knowledge, you'll easily leap those final hurdles on the way to being a homeowner.
Though every situation is different, most home closings take 30 to 60 days. When you submit an offer on a home, you and the seller have to agree to a timeline that makes sense for both of you. There's a lot to do during the home closing process, from ordering the title to conducting inspections and getting your mortgage approved, all of which can take time.
Some steps during the closing process can be checked off in a day, while others may take a couple weeks to finalize. Your house closing timeline and costs could look something like the table below.
As the buyer, there's a lot to do during the home closing process. Fortunately, your real estate agent, title agent and attorney (if you have one) can help guide you through each step. Here's an overview of some of your responsibilities during closing.
Regardless of whether you received pre-approval while shopping for a home, it's now time to complete and submit your loan application. If you haven't chosen a lender, use our guide to compare mortgage lenders and choose the one that's best for you.
Within a few days of submitting your application, the lender should provide you with a loan estimate. This estimate includes your contact information, the loan term, interest rate, closing costs, and other details. Review this carefully and contact your mortgage lender if you have questions or find any discrepancies.
Final loan approval may take a few weeks. During this time, a lender appraisal (handled by the lender) ensures the property value aligns with the sale price. It's also common for a lender to request additional information -- be sure to respond promptly to any such requests.
When you receive loan approval, your lender will ask you if you want to "lock your rate." A rate lock guarantees that you'll receive a certain interest rate regardless of how rates change during the time of your lock. Depending on when you plan to close on a home, you can choose rate lock periods ranging from 30 to 60 days, and in some cases, up to 90 days.
At AmeriSave, we offer a competitive 90-day rate lock so you have peace of mind knowing your interest rate won't increase if rates rise during your home buying or closing process.
Buying a home is a significant investment, and between your closing costs and other expenses, coming up with the money is one of the key hurdles in this sprint to the finish. Here are the common costs you can expect to pay during the house closing process.
A title company is a third party hired to facilitate a real estate transaction. Here's a list of services title companies typically provide:
Though the buyer typically chooses the title company -- and pays for the title insurance -- this may vary depending on your location or circumstance. It's also important to note that according to the Real Estate Settlement Procedures Act (RESPA), sellers cannot require buyers to use a certain title company as a condition of the sale.
If your purchase contract requires earnest money, you'll deposit this into the escrow account, which is commonly held by the title company or a participating broker. This good-faith deposit represents your financial commitment to buy the home. If you decide to walk away from the sale for any reason not outlined in the agreement's contingencies, the earnest money will go to the seller.
A home inspection is a third-party property assessment conducted by a dedicated professional. The inspection focuses on your home's HVAC, plumbing, and electrical systems, as well as structural elements -- such as the roof, foundation, and flooring -- and any potential safety issues. The inspector will also look for signs of insect infestation or other damage that may impact the home's value.
You should receive a full written report of the inspector's findings and recommendations. Hopefully, the report comes back clean, and you can move forward with the closing. However, if the inspection raises any issues, you can renegotiate the sales price, ask the seller to complete any repairs, or ask for a credit toward those repairs. If you've included an inspection contingency in the purchase agreement, you can even choose to cancel the sale and walk away with your earnest money.
At least three days before closing day, you'll receive a closing disclosure from your lender (they're required by law to provide it). This five-page document outlines some of the key details of your mortgage, including the terms, interest rate, down payment, monthly payments, and other fees.
Read this document carefully, and make sure the details match the loan estimate. Contact your lender immediately if you find any discrepancies or have questions.
Your mortgage lender will require you to buy homeowners insurance, which provides financial protection if your home is damaged or destroyed by fire, storm, wind, or other incidents. Be sure the coverage limit is based on the cost to rebuild (which may be significantly more than the sale price). An independent insurance agent or broker representing multiple insurance carriers can help you choose a policy that meets your needs.
A final walk-through is one of the last steps in the home closing process and provides you with one last chance to look at the property before closing day. Take this opportunity to make sure the seller has completed any requested repairs -- including those resulting from the inspection report -- and that the home is otherwise in the same condition as when you signed the purchase agreement.
You'll also use this time to ensure the seller has completely moved out and left anything they agreed to leave behind, such as appliances or certain furniture.
During the home closing process the seller must complete and sign a disclosure form that indicates whether the home has any known issues that might affect its value. Sellers must also complete a lead-based paint disclosure if the home was built before 1978. These disclosures provide you with even more information about the state of the home and limit your ability to sue the seller for any undisclosed issues.
A seller's disclosure is a form that consists of questions about the state of the home and its systems, along with any defects. It asks about how the home was used, any changes that were made, and any problems the seller might know about.
If there's a roof leak or if the heater is broken, the seller is required to share that information on the seller's disclosure. The seller's disclosure will also include details about any past issues, along with any repairs or upgrades the seller has made.
As part of the house closing process, you can ask the seller to address any necessary repairs that come up during the home inspection. Buyers typically request fixes for safety hazards or major structural issues, such as a leaking roof, faulty wiring, or plumbing problems.
Some sellers may offer repair credits instead, allowing the buyer to handle the work after closing. Your REALTOR® can help you negotiate the specific terms of repairs during closing.
The home closing process concludes on closing day, when you'll finally get the keys to your new home!
At this point, all that's left for you to do is cover the closing costs and your down payment, and sign the necessary paperwork. You'll also have to show two forms of identification, and verify for your lender that you have homeowners insurance. Your real estate agent and a representative from the title company will be there to walk you through all the paperwork and answer any questions.
While you'll probably spend most of your time reviewing and signing documents, you'll need to bring the following to the closing table:
With the end of the home closing processso near -- and homeownership practically within your grasp -- you want to do all you can to close on time. This includes communicating with your lender to give them everything they need, avoiding changes to your financial situation and staying alert to possible scams.
Be sure to respond to any questions or requests from your mortgage banker or real estate agent as quickly as possible to ensure a smooth closing process. It's common for a lender to need additional information to document your income, debts, or savings.
Keeping your finances steady is key to maintaining your loan eligibility and closing on time. Hold off on changing jobs, making big purchases, or taking out new loans until after closing to ensure a smooth process.
Unfortunately, scammers try and capitalize on buyers lacking familiarity with the closing process. Wire transfer scams are one of the most common types of fraud, so make sure you call the title company directly by phone and verbally confirm you're sending the money to the right place before transferring any funds.
Now that the home closing process is complete, you'll probably have your hands full with all the great things you've got planned for your new home. This is a great opportunity to make copies of all your closing documents and store them somewhere safe. Remember to always pay your mortgage on time, and if you have any questions about your new home loan, contact your AmeriSave mortgage specialist.
The timeline for closing on a house can vary from a few weeks to a few months but is usually between 30 and 60 days.
There are several reasons that closing on a house can take several weeks. Ultimately, it’s because the required inspections, title search, and mortgage are processes that take time.
The closing date is the result of a negotiation between the buyer and seller. If the seller needs time to move out and relocate, the closing might take a bit longer, but if the buyer is in a hurry to move, the closing could occur in just a few weeks. It all depends on the specific situation.
When you’re preparing to close on a house, you shouldn’t do anything that might affect your ability to get your mortgage. Examples include changing jobs, purchasing big-ticket items, taking out new loans, missing payments on existing loans or failing to provide documents requested by your lender.
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