How Long Does It Take To Close On A Home?

How Long Does It Take To Close On A Home?

Buying a home certainly isn’t like going shopping for a new laptop, or even a car, it takes longer and it should considering it is likely the biggest investment you will ever make. Though after you find the home of your dreams and get an offer accepted by the seller, how long does it take to actually close so you can move in?

How fast you can buy a home depends on two main factors. firstly who you are buying from and secondly whether you need financing and how fast you can get a loan approved.

If you are paying cash and you are buying a home that is unencumbered by the foreclosure mess you could close on your new home in as little as 3 days. Of course it could be done in a day, but you will certainly want to have a title search performed and obtain insurance.

However many homes on the market today are made up of short sales, banked owned REOs and HUD foreclosures. As HUD homes require dealing with the government they can certainly take a couple of months to close on. Banks are also not known for being the speediest sellers to work with and while bank owned foreclosures can offer big discounts they also come with a lot of paperwork which can slow down the process. Similarly short sales which offer massive discounts and some of the most attractive house bargains can unfortunately take a number of months to close with some lenders taking over 6 months to approve them.

This does not make any of these types of properties any less attractive by any means. In fact it is a good thing in many ways. While everyone wants to take advantage of the many deals on the market not everyone is ready and putting one of these properties under contract can lock in today’s amazing prices while still giving you time to save a little longer for a larger down payment or improve your credit so that you take get a lower interest rate on your mortgage.

Even for those with good credit there are more hoops to jump through these days in order to get your mort loan funded. Remember that just because you received a pre-approval doesn’t mean that the loan process is over by any means. You must still have inspections done, order appraisals, shop for insurance provide all the paper work requested by underwriters and arrange the closing. So know what you are up against, but even if you don’t plan on moving for another 6 months you need to start home shopping today.

For more information on we can help you buy or sell a home, contact Christian Weatherspoon by phone at (619) 500-2444 or visit our contact us page and get in touch!