Something everyone, and I mean everyone wants to know is, “When are we going to close?” From the sellers, to the buyers, and everyone in between, timelines are important to keep on track in order to ensure everyone is treated fairly, and that unnecessary charges aren’t racked up. In other words “time is of the essence”
Disclaimer: Realtors and Real Estate Agents alike are NOT lawyers and they are Not Mortgage or lending professionals. Therefore please do ask you attorney and Loan Originator what timelines to expect to follow. Every Real Estate purchase is unique. A Realtor has a vast knowledge based off observation, but is not qualified or able to be your sole relied upon source for what to expect when making a real estate purchase.
So, back to your question. How long is this going to take?! We are going to go over one type of Mortgage today. Conventional Mortgages. There are other types and situations, we’ll save those for another time (trust me! I’m trying to inform you not bore you). And generally speaking with any purchase requiring a mortgage, these are the basic steps.
The short answer is that on average a Conventional Mortgage takes 60-70 days from the date of making your loan application to getting your hands on those keys at the closing table.
The explanation is what you really need to understand. Basically the whole ENTIRE transaction is a “domino effect”. The next step can’t happen until the previous step has been done. Let’s start with conventional since most folks don’t have enough cash to buy property outright.
Alright, Conventional. The gold standard of mortgages! Every sellers dream buyer is a cash buyer, but conventional is certainty second best. So what happens when you are a buyer using a conventional mortgage?
- Find your house, make an offer, come to an agreement, and congratulations! You’ve just accomplished the easiest part of the process that you probably thought was going to be the hardest.
- Make bank application: typically within a week you need to sit down with the lender you’ve chosen and actually apply for the mortgage. They will want more information from you, tax returns, credit check, etc.
- Inspections: If you were wise and have a dutiful Realtor who insisted upon it you’ll be having at least a home inspection, but possibly other testing such as Radon, well and septic testing. (Usually due within 14 days)
- Get your commitment letter: In our area this is required usually within 30 days of contract. that’s why it’s so important to make bank application as soon as possible. (30 days)
- Abstract Update: once the sellers attorney is notified that you received your commitment letter they will start the update for the abstract. An abstract is the history of the property.(47-54 days)
- Review the abstract and verify it’s credentials. (60+ days)
- Congrats for real! No you can start to get excited. This is when it really becomes real. You’re approved, the house is approved, the bank is ready to cut the check and you’ve just gotten the “Clear to Close” The Closing Disclosure will be sent to you and the closing date is scheduled.
- Final Walk Thru: The day before or the day of you have the right to a final walk through to verify that the property is still in the same condition you’ve been under the assumption it is in.
- Closing! sign the paperwork, get the keys. Now the property is all yours!!!