The total amount of time it takes to close on a house depends on everyone involved in the home purchase process. This will mostly will boil down to yourself (and any co-applicants for the home loan), your real estate agent (if you choose to hire one, which we recommend you do), and finally us the mortgage lender. There are other parties involved, such as the appraiser, but the parties involved predominately consist of you, your agent, and us.
So Exactly How Fast Can You Close on a Home?
Assuming everyone is on the same page and agrees to not cause any delays, you should be able to accomplish a 2 week mortgage close. The first step is to apply and get a mortgage approval. Your approval will list requirements needed to be satisfied prior to closing. These are known as “loan conditions”. The most common loan conditions / documentation requirements are pay stubs, tax returns, bank statements, and an appraisal.
If you promptly order an appraisal from a certified appraiser who is able to complete the work within one week, this will help tremendously. This will allow sufficient time for an underwriter to review it and clear it. Meanwhile, in the first week while the appraisal is being worked out, send in all required documents mentioned in your loan approval. Ideally, send us these documents within 48 hours to ensure processing is completed in a timely manner.
What Else May Impact the Time to Close?
If there are no complications such as a denied appraisal, or conditions not meet such as unsatisfactory loan documents, very little would potentially cause a delay. If you hire a slow appraisal, have an employer who does not cooperate with providing employment verification, this can cause a delay or loan to be denied prior to closing.
The best way to find out how to close on a house fast, is schedule a free consultation. Your loan representative will be able to assist you and answer all of your questions.
Steps to Achieve a Fast Closing on a House
- The first step is to apply. If you are approved, you will receive a list of requirements that must be satisfied prior to your loan closing.
- The second step is to get your purchase contract.
- The third step is to order your appraisal.
- The fourth step is to gather and submit all your required loan conditions (pay stubs, bank statements, tax returns, etc.) which will be outlined on your loan approval.
- Once all your loan conditions (including the appraisal) have been reviewed and approved, you will receive the “clear to close“, which you will then want to schedule a closing date.
- The final step is the mortgage closing. This takes approximately 1-2 hours. It takes place at the title company or through public notary.
After your loan closes, it will proceed to the loan funding. As soon as the seller receives the funds (which is usually same day if not the following day, and is in the form of a wire transfer), you should receive your keys and can move into your new house!