How Long Does it Take to Close on a House?

One of the most significant factors for homebuyers is time. Some buyers are ready with a well-prepared budget and need to buy and move in as soon as possible. Others are just starting their home buying journey and want to take the time to navigate the transaction on their schedule.

Closing on a house ultimately depends on each buyer’s scenario. Are you just starting to set aside a down payment? Or are you in the final stages of making an offer? Are you buying all cash or considering a mortgage? The factors can be endless, but understanding the general timeline is not as difficult as it may seem.

As a buyer, you want to know how long a homebuying process may take. You don’t want to feel pressured to close as soon as possible, so you can take all the time you need to make an informed decision. But you also want to know if moving quickly when you are in a hurry to close is possible. 

Below, we’ll examine the intricacies of closing on a house in terms of the general timeline, from the overall steps you can expect to specific nuances you should consider as you move through the home-buying process.

How long will it take to close on a house?

• What does "closing on a house" mean?
• What is the average timeline for closing on a house?
• Factors that affect a real estate closing timeline
• What to do if the closing is delayed
• Example of a detailed closing timeline
• How to speed up the closing process
• What to expect on closing day

What does "closing on a house" mean?

Closing on a house is often the final step in the home buying process, where all the paperwork is signed, funds are exchanged, and ownership of the property is officially transferred from the seller to the buyer. 

Yet, the actual closing timeline on a house depends on how you look at it. 

It can be the culmination of weeks—or even months—of work that began with the decision to explore listings or set aside a down payment. 

During the final stages of closing, you’ll deal with various legal and financial documents, including the mortgage agreement, title deed, closing disclosures, and any applicable recording or transfer documents for your local area.

On closing day, you’ll typically meet with your buyer’s agent, real estate attorney or escrow agent, possibly the seller and listing agent, and your lender’s representative, depending on the local market you are in. Together, you’ll review and sign all necessary documents, pay any remaining closing costs, and receive the keys to your new home. 

But getting to this point involves a series of steps that can take anywhere from a few weeks to several months. Understanding each step can help you better navigate the process and avoid unexpected delays.

What is the average timeline for closing on a house?

Everyone’s timeline for purchasing and closing on a house is different, so it’s not always a great idea to compare your home buying journey with someone else. 

Many factors can affect how long it will take to close on a house. If you’re just starting to set aside a down payment without a clear idea of the exact kind of house you want, you should probably get ready for a lengthy journey. If you already have a down payment ready and know exactly what you’re looking for, your closing timeline may already be shorter.

The actual closing process varies, but most transactions are completed within 30 to 45 days from the time the offer is accepted. If you’re financing your purchase with a conventional loan, you can expect the process to take around 30 days. However, due to additional requirements, if you’re using an FHA or VA loan, the timeline might extend to 45-60 days.

For cash buyers, the closing process can be much quicker—sometimes as fast as 7 to 14 days, or less. Without needing a mortgage loan, cash buyers can bypass many steps that typically slow down the process. However, even cash buyers may face delays if issues arise during the inspection or title search.

The type of home loan you’re using plays a significant role in how long it takes to close, but other factors, such as the readiness of both parties and market conditions, can also impact the timeline. 

Factors that affect a real estate closing timeline

One of the most significant factors affecting the closing timelines is the mortgage approval process. Your lender will need to verify your financial information such as your assets and liabilities, as well as your credit score, income, and debt-to-income ratio. If your financial situation is complex or if there are discrepancies in your documentation, this process can take longer.

Home inspections and appraisals are another common cause of delays. If the inspection reveals issues that need to be addressed or further investigation, such as structural problems or safety concerns, negotiations between the buyer and seller can prolong the timeline. Similarly, if the appraisal comes in lower than the agreed-upon purchase price, it can lead to renegotiations or the need for additional financing depending on the agreed upon contingencies of the transaction.

The title insurance process can also impact the timeline. A title search is conducted by a title company to ensure no legal issues, such as liens or ownership disputes, could affect the sale. If any issues are discovered, they must be resolved before closing can proceed. The readiness and responsiveness of both the buyer and seller and their willingness to cooperate play a crucial role in keeping the process on track.

What to do if closing is delayed

Despite your best efforts, closing delays can happen. If you are pressed for time, the first step is to prioritize communication with all parties involved, including your real estate agent, lender, and seller. Understanding the cause of the delay and ensuring everyone is on the same page can help you navigate the situation calmly.

If the delay is due to a financing issue, you may need to negotiate an extension with the seller. Most purchase agreements include a financing contingency, allowing you to walk away from a transaction if you are unable to secure a mortgage, so be sure to consider that contingency when making an offer. 

Some buyers may find themselves locked into a specific move-in date on their new home that is after selling and already moving out of an older property. Having a back up plan for such moments can be a lifesaver. 

This might include temporary housing arrangements or adjusting your moving schedule. While it’s understandable that planning ahead is a solid course of action, being ready with a Plan B—or even C—can be key to remaining flexible and patient. For example, have some housing options that won’t break the budget and plan with your moving company for a scenario where the date might have to be pushed back.

Example of a detailed real estate closing timeline

It’s important to remember that this is just a general outline, and can vary from market to market across the country, but it helps give you a rough idea of what a step-by-step closing process typically looks like. 

Day 1-7

Once your offer is accepted, you’ll typically have a few days or a week to make your earnest money deposit and begin the mortgage application process. This is also when the seller removes the home from the market, marking it as "under contract" or "under agreement." In addition, most buyers will hire a licensed inspector to review the property during the agreed-upon inspection period of their accepted offer. 

Day 8-15

During the second week, if not sooner, the lender will have the home appraised. The title search will also begin, ensuring no legal issues with the property’s ownership.

Day 16-25

The lender will review the appraisal and your financial documentation during this time. Underwriting will occur, where the lender assesses the risk of approving your loan. You may need to provide additional documentation or clarification during this period.

Day 26-35

As you approach the final stretch, the lender will issue the final loan approval, and you’ll receive the closing disclosure, which outlines the final loan terms, closing costs, and homeowners insurance requirements. Also, you’ll conduct a final walk through right before closing to ensure everything is in order.

Day 36-45

If necessary, the last ten days are dedicated to final preparations. Then, you’ll review and sign all required documents, transfer the funds for the down payment and closing costs, and finally, the property will be legally transferred to you on closing day.

This timeline can vary depending on various factors, but having a general sense of what to expect can help you stay on track and avoid unnecessary delays.

How to speed up the closing process

If you’re eager to close on your new home quickly, there are several strategies you can use to speed up the process, but you’ll generally have to put these pieces into play before making an offer.

First, getting pre-approved for a mortgage before you start house hunting can save you time. A pre-approval letter shows sellers that you’re a serious buyer and is a common document to have ready before making an offer. Buyers can also pursue a fully underwritten pre-approval where a lender does all of their underwriting in advance, allowing you to close even quicker once you identify a property.

Organizing your documents is another way to keep the process moving smoothly. Make sure you have all necessary paperwork, such as tax returns, pay stubs, and bank statements, readily available. This will help prevent delays when your lender requests documentation.

Maintaining regular communication with your real estate agent, lender, and seller’s agent is also crucial. Responding promptly to requests for information or signatures can help avoid bottlenecks and keep the process on track. Choosing a reliable lender and real estate agent with a proven track record can also significantly improve the speed and efficiency of your closing process.

What to expect on closing day

Closing day is the culmination of weeks of preparation and anticipation. When the big day finally arrives, you’ll conduct a final walkthrough of the property to ensure that everything is in the agreed-upon condition. This is your last chance to address any issues before taking ownership, so be sure to check every nook and cranny—ideally with the aid of a professional buyer’s agent.

Next, you’ll sign documents, including the mortgage note, deed of trust, and closing disclosure. These documents finalize the loan agreement and transfer property ownership from the seller to you. It’s essential to review each document carefully and ask questions if anything is unclear.

Once all the documents are signed, the funds will be transferred to the seller, and you’ll receive the keys to your new home.