Every day, people are faced with having to sell an inherited home, a distressed house, or an old or unwanted investment property. You may find yourself in the midst of sudden life changes, such as a new job or a family emergency, which can mean having to pack up and move on short notice.
In those cases, you may be asking yourself just how fast you can close on a house — especially when the closing process be confusing to those who are not familiar with this part of the selling journey. Let’s dive into what homeowners should know about how long the closing process takes and what they can expect.
How fast can you close on a house with a mortgage?
When you sell your home to a conventional buyer with a mortgage, you can expect to close 30-45 days after the contract is signed. Particular loans, such as first-time home buyer programs, VA, and FHA loans, can take longer to close because the requirements are stricter.
What are the steps to close on a house with a mortgage?
As of September 2021, the average time to close a home purchase was 50 days. That’s because the steps to close on a house can be complex and lengthy, including:
- Execute the contract and confirm the closing date
- Open the escrow account (a few days)
- Inspection and repair requests (1-2 weeks)
- Mortgage application and underwriting (5-20 days)
- Appraisal (1-2 weeks)
- Acquire homeowner’s insurance and title insurance (1 day)
- Loan approval, commonly called “Clear to close” (1 day)
- Final walk-through (1 day)
- Closing appointment (1 day)
What causes delays when closing on a house?
And that’s if everything goes to plan. How fast you can close on a house can be impacted by several possible delays:
- Buyer Financing: Most of the time, the question of how quickly you can close on a house boils down to finalizing the mortgage. Delays here can include can be anything from appraisal concerns to missing financial documentation to an inexperienced loan officer.
- Title Issues: If you have any unresolved liens or judgments on the home, or if any other ownership disputes are uncovered during the escrow process, how fast you can close on a house can depend on how long it takes for these issues to be resolved.
- Homeowner’s Insurance: In order to close, the buyer must have proof that they’ve secured a homeowner’s insurance policy on the property. Homes at high risk of damage from natural disasters or with an extensive claims history may be difficult or expensive to insure, affecting how fast or slow the home closing process is. For example, homes here in Florida often have this problem due to our susceptibility to hurricanes.
- Inspection Dealbreakers: Problems revealed during the home inspection can delay the closing by requiring further negotiations — either leading to making the repairs before closing, adjusting the sale price, or canceling the transaction altogether.
- Slow Repair Requests: If you’re going back and forth with the buyer on repairs needed based on the home inspection report, both the negotiations and the repairs themselves can slow down your closing timeline.
- Closing Day Woes: It’s common knowledge that the worst day to close on a house is when brokerages and title companies are busiest — which usually means Mondays, Fridays, around holidays, or at beginning or end of the month. That’s because of how much paperwork is involved and how many transactions they’re processing. If there are any issues or, for some reason, closing is delayed, they’ll have to wait until the following week to be resolved.
How fast can you close on a house with cash?
On the other hand, selling to a cash buyer means you don’t have to worry about the worst day to close on a house to begin with. In fact, “how fast can you close on a house” and “how fast can you close on a house with cash” are two drastically different questions.
That’s because with a cash buyer, many of the factors that often delay the closing process become moot: You eliminate all the steps associated with mortgage approval: underwriting, the appraisal, and the three-day waiting period associated with the mortgage closing disclosure.
But how much faster is it, really? For example, if you sell to a cash buyer, can you close on a house in two weeks?
Actually, many people are shocked to learn exactly how fast you can close on a house with cash: as little as seven days. Compared to the national average of 50 days, that timeline can be a godsend to anyone hoping to get a property off their hands or liquidate their assets in a hurry.
How much are closing costs in Florida? Other considerations when selling your house to a cash buyer
Being able to close on a house quickly is a great reason alone to consider selling to a cash buyer, but that’s far from the only advantage. Another major consideration is how much closing costs are in Florida. When selling your home, there are multiple fees and closing costs associated.
The many closing costs that are a seller’s responsibility are:
- A property or deed transfer tax
- Required repairs
- Real estate agent commissions
- Title insurance
- Recording fees
- Any outstanding liens against the property
On the other hand, when you work with an investment company such as KM Home Buyers in Tampa, Florida, we take care of all the fees and closing costs in one flat offer. This makes the selling process hassle-free and less confusing.
Not to mention, we guarantee an immediate cash offer and closing in less than seven days — saving you time, money, and unnecessary anxiety.
Contact KM Home Buyers to Close on a House Quickly
We buy houses throughout Hillsborough, Pinellas, Pasco, Hernando, and Polk Counties. To learn more about how fast you can close on a house with cash, call us at 813-213-4884 or contact us online and have a no-obligation offer in your hand in as little as 24 hours.