As of mid-2024, the average closing time on a house was 43 days after acceptance of an offer, down slightly from 48 in 2022, according to ICE Mortgage Technology, Inc. Whether that timeline feels swift or slow will depend on your personal circumstances, but once you’ve found a home to buy, it’s natural to want to close the deal quickly.
Online mortgage options can speed this process along, and many home sales can be buttoned up in as little as 20 to 30 days. Still, delays can happen.
Here’s what you need to know in order to get to the closing table.
How Long Does Closing on a House Take?
If you’re paying cash for a house, you’ll typically be able to close quickly.
But let’s assume a home loan will be part of the process. You’ve jumped through the initial hoops of the mortgage loan process an made an offer on a home you like.
If the offer is accepted, you’ll provide an earnest money deposit and sign a purchase contract. The price and any contingencies — conditions that must be met for the deal to proceed — are included in the purchase agreement.
This begins the due diligence period. It includes a title search to verify ownership and look for any liens that need to be paid off to ensure clear title to the new home. Most but not all issues will be reflected in a preliminary title report.
A typical contingency period is 30 to 60 days, though something like the inspection could be required within 10 days or less. Buyers can ask for extensions in writing.
Here are four common contingencies:
Financing Contingency
The mortgage contingency nullifies the deal if you can’t procure a mortgage within a certain time. The contingency language may be specific about the type of loan, down payment, and interest rate.
Getting preapproved for a mortgage is standard, but it’s not a guarantee. After your chosen home is under contract, your mortgage still has to go through underwriting.
Recommended: How Does the Mortgage Preapproval Process Work?
Home Sale Contingency
You may need to sell your current house to complete the purchase. You’ll typically be given 30 to 60 days to do so. In a competitive market, many sellers won’t even consider the offer with a home sale contingency.
But some sellers may employ a kick-out clause, which allows them to keep showing their home and “kick out” the contingent buyers if the sellers receive an offer without a home sale contingency.
Appraisal Contingency
An appraisal is usually required when a home is being financed. If the property valuation is less than your offer, you may walk away from the deal. You could also cough up the difference or ask the sellers to lower the price.
How long after the appraisal to close? About two weeks.
(By the way, if you’re still in the shopping stage, you can put an offer on a house that’s contingent.)
Home Inspection Contingency
A home inspection is generally not mandatory for any loan type but will help ensure that the home is free of issues that may result in expensive repairs. In a seller’s market, many properties are sold as is, meaning sellers won’t negotiate for repairs after the inspection.
In a buyer’s market, sellers might agree to pay for some repairs or to reduce the home’s price.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
How a Mortgage Closing Works
You’ve qualified for a mortgage and chosen a lender.
After you’ve supplied income, asset, and other documentation, all of the contingencies have been satisfied, and your mortgage has received final approval from underwriting, it’s time to prepare for closing.
This will be the big day, when signing the closing documents legally transfers ownership from the sellers.
Sign Documents
Three days before your closing date, your lender will provide you with a closing disclosure that outlines the final closing costs and terms of your home loan. You can compare this five-page form with the loan estimate you received after applying for the mortgage.
Paperwork (lots of it) will have been prepared for you, including the deed of trust or mortgage and the settlement statement.
In some cases, everyone gathers in one place to sign closing paperwork. Other times, buyers sign separately from sellers. Forty-seven states and the District of Columbia now allow remote online notarization.
Pay Closing Costs
The lender will usually tell you the amount needed for closing several days before the event. A wire transfer may be arranged a day or two before closing. Or you can present a cashier’s check or certified check that day.
Cash to close includes closing costs (unless you opted for a no-closing-cost mortgage) and your down payment minus your earnest money deposit and any seller credits.
Transfer the Home Title
After signing a mountain of documents, the closing attorney, escrow officer, or title company representative will record the deed, and you will be given the house keys.
Recommended: First-Time Homebuyer Guide
The House Closing Process, Step By Step
Here are the basics.
1. Seller signs the purchase agreement.
2. Buyer may order a home inspection.
3. Buyer applies for the mortgage (and considers asking to lock in the rate).
4. Lender orders a home appraisal and conducts credit underwriting.
5. Mortgage is approved.
6. Buyer provides proof of homeowners and title insurance.
7. Buyer receives the closing disclosure; notice of closing time, date and location; and what to present at closing, like a photo ID and cashier’s check or proof of wire transfer for cash to close.
8. Buyer takes a final walk-through, verifying that sellers have made any required repairs and that nothing in the purchase agreement was removed. The buyer can check for leaks, turn on heating and air conditioning, and so forth.
What Causes Delays When Closing on a House?
A buyer and seller agree to a target closing date in the purchase contract, but the closing doesn’t always happen on or before that date.
Financing, appraisal, inspection, and other issues can delay a closing. Here’s a taste of what may cause a postponement:
Lender wants more documentation. Even if buyers were pre-approved, received their mortgage commitment, and were cleared to close, lenders will review credit and bank statements one last time within a few days of closing. Any abnormalities can delay the closing.
The mortgage is denied. Even after preapproval, a home loan may be denied for lots of reasons, sending buyers back to the starting block.
Interest rates surge unexpectedly. This can affect qualification if the loan is not locked.
The appraisal comes in low. A home may appraise for less than the purchase offer. Buyers can request a second appraisal, ask the sellers to renegotiate the price, put more down to cover the difference, or walk away. (This is where having an appraisal contingency is key.)
The inspection reveals that major repairs are needed. If it’s an as-is sale, buyers can walk away if they had an inspection contingency in the contract. They could still try asking the sellers to make certain repairs, request a decrease in the sale price based on the cost of repairs, or ask for a home warranty.
The title is not clear. A contractor’s lien, for example, can cause a closing delay if the contractor can’t be found to settle it.
Buyers can’t sell their house in time. If sellers agreed to a home sale contingency, the clock is ticking. If the buyers’ home doesn’t sell in time, the deal could fall through.
Instrument survey issues. Boundary line encroachments or disputes can hang up a closing.
Unrealistic closing date. Any complication can cause a deadline to fail. An extension must be approved by each party.
The Takeaway
How long does it take to close on a house? The average closing takes place 43 days from the time an offer is accepted, but the timeline varies. Getting to the closing table, in person or remotely, is an accomplishment. It means you qualified and persevered.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
How long does it take to close on a house with cash?
In general, it takes only 2 to 3 weeks to close on a house with cash because there’s no need to wait for a lender to approve a loan. Once seller and buyer agree on a price and the inspection is done (if the buyer requires one), the closing can be scheduled immediately.
How long does it take to close on a house after the appraisal?
It could take anywhere from 2 to 6 weeks to close on a house after the appraisal. If the home appraises for the agreed-upon price and your mortgage documents are all in order, you could find yourself at the closing table in as little as 14 days. Complications with the appraisal, home inspection, or mortgage approval will extend this timeline.
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