So, you're wondering about how long does it take to close on a house after you get an accepted offer. Before I dive into the answer, just know there is no direct answer to this. Each deal is unique in it's own way and the path you choose to go will help determine about how long the process will take.
Don't go packing your stuff just yet, here are 4 quick factors that will determine how long it will take to close on your new home.
1) Type of loan you take out
If you are going through FHA, VA, USDA, or a First Time Home buyer loan program, the lending process may take longer than a Conventional loan
Usually within these programs, they are more lax on their qualifications, but that also requires a lot more documentation on their end to make sure you can get approved for the loan.
2) Financial Stability
Lenders are going to dig into your bank accounts and see what they are working with. If you are a first time home buyer with little money in the bank, the lender may need additional time to get your loan processed
If you are someone who has purchased several homes in the past and have plenty money in the bank to put down, this could make your lenders job a little easier, therefore could speed up the process
Typically, the more you are able to show and put down, the less risk you are for the lender to take you on.
3) When do you need to move by?
If you need to move within 90 days, and the seller needs to move in 75 days, maybe you guys can work out a date that works for both of you. In this scenario, if you close in 75 days, that would give you 2 weeks to close, and move out of your current place and into your new home.
When your agent fills out the offer, they will have to put a closing date on there, so make sure you take all things into consideration here, and if the seller counters your date, see how you can meet in the middle.
4) Find a good lender!!
This right here is probably the most important factor out of all of them. If you don't have a great lender who will stay on top of your file daily, this could cause major delays
I would advise you to seek recommendations from your Realtor and then do your research on that lender to make sure they are a good fit for you. If you have the right agent, chances are they can help guide you here.
While the internet is a great place to being your house hunting, I would think twice about filling out an online form before looking for a lender. You will get bombarded with phone calls for months and months!
Chances are, if you go online shopping for a lender, you will land an out of state lender. You may get someone on a different time zone who only works Mon-Fri, 9-5. That does you no good when you are house hunting over the weekend.
If you didn‘t know by now, getting pre-approved for a loan will help determine how much home you an afford and when you can move. If this is your first time buying a home, don't let the loan process scare you. It's honestly harder to go into your bank right now and get an unsecured loan for $10,000 than it is to buy a $150,000 house. The lender would rather deny you upfront than you get all the way through the buying process and your loan not get approved.
So, after all of that, how long does it take to close on a home? Here in Indiana, it takes about 30-45 days to close on a home. If you are paying cash, you could close as quickly as 2 weeks!
Now you know how long it takes to close on a house! Any other questions about the process, please leave them in the comments below. Thanks!