The Average Closing Timeline
The closing process starts when you have a signed purchase and sale agreement. On this agreement, it will state the closing date that the transaction will be complete. All closings are different. Some can be a quick close and most closings can take anywhere from 4-8 weeks after the offer has been accepted. From the moment the offer is accepted until the final closing date, this is a time period called “escrow”. Through this time frame is typically when people will start preparing to move. This is a good time to pack items that won’t be needed for the next 4-8 weeks as well as make any arrangements to switch over utility bills. The real estate agent will be working with you to make sure all necessary paperwork is complete on time for the closing date. Most times realtors will set up the closing date with the title company as well as the mortgage lender. The closing agent will tie up any loose ends with the house. The lender during this time will put numbers together to give a realistic final number that will need to be paid the day of closing. This can include all closing costs, first and second deposits, and the commissions that will be paid to all agents and lenders involved. The lender will also hire an appraiser as well as prepare all loan documents. They will also instruct the buyer on the timeline of how soon to have the down payment ready, and who to send the first deposits to. The title company will be sure to make sure there are no liens on the house. During all of this, the realtor is in the background making sure everyone is aware of each step during this process, and helping to speed things along.
Things to prepare for your closing
- Complete a loan application to provide for your lender.
- Attain a homeowner insurance policy.
- Set up an inspection date with ample time to have anything fixed that needs to pass inspection.
- If there are problems with the inspection that do not affect it passing or failing, request a Seller’s Assist from the seller.
- Attain any security systems if needed, some insurance companies will change your rate if you have one.
- Set up any needed utilities at the new house for the date of closing.
- On one of the days before the close date, set up a final walk through with your realtor.