Timeline for Closing on a House
There are a few steps that you will need to navigate as you prepare and complete a closing on a new home. Below is a timeline you may want to consider so that you will be ready for the closing 30-45 days after your offer letter has been accepted.
Negotiate the Offer
Days 1 to 3: Once you make an offer on the home, the sellers review it and provide you with a counter-offer. Negotiations can take several days, and the final offer should establish the following:
- What is included in the purchase
- The closing date
- The moving date
Book a Home Inspection
Day 4: After you have a signed final offer from the sellers, you should schedule a home inspection on the property you intend to purchase. An inspection is optional, but it is highly recommended. Through the process of an inspection you learn more about the home and it provides you with an opportunity to request that the seller make repairs if necessary.
Finalize the Purchase Agreement
Days 7 to 10: Now that you have had the inspection done and have consulted with the sellers, you can finalize the purchase agreement. The purchase agreement must be agreed upon by both the buyers and the sellers in order to move forward.
Complete the Mortgage Application
Day 14: It is time to make an appointment with your loan provider and finalize your mortgage application. Your loan officer will assist you with all the necessary paperwork to complete the application and will send it forward for final approval.
Order an Appraisal
Days 15 to 20: The mortgage company will need an appraisal done on the property to estimate its value. Once the appraisal is completed, the loan is one step closer to being approved. The mortgage company will review the results of the appraisal and determine if the loan is acceptable considering the value of the home. In some cases, additional paperwork is required. In most situations, the mortgage company can evaluate the appraisal and complete the loan application process within the time limits established in the purchase agreement.
Receive Final Loan Approval
Days 25 to 45: Your lender will give you a final loan approval, and you will be considered clear to close on your new property. Once you have received your final approval, all you have to do is to start the countdown until your closing date.
Once you have the cleared any obstacles that might be in your way to close, all you have to do is wait for closing day. Your closing is typically 30-45 days after the offer has been accepted. It also depends on the deal that you negotiated with the sellers of the home. A closing day is a big event. Once all of the papers have been signed, and all the checks have been written, the house will be transferred into your name. You now are the proud owner of a new home that is all yours to enjoy!