So, you’ve looked at dozens of homes, peered into dozens of closets, turned on (and hopefully off) a dozen light switches and faucets and you’ve found the perfect home! The offer you made on your dream home has been accepted and now you’re probably wondering how long until you can close and start on all your Pinterest projects you’ve been pinning. Most residential transactions close within 30 days of going under contract. On the sales contract you signed, it will have a date that you and the seller are wanting to close on or before.
Once your agent has dropped off the executed contract and earnest money to the title company, the title company will receipt in the contract and earnest money and set up the order. The order is then worked up by the title examiner. Meanwhile the lender that the buyer is using has also sent a title request to the title company for the title work. If you are using a Mortgage Company or a local Bank they have certain steps, they must take with their Underwriter to get your loan fully approved. Once the title commitment has been worked up it will be sent to you the buyer as well as your lender. While your lender is working on their end of things, the closer and their assistants will be working to get your file ready for closing. This will consist of clearing the items on Schedule C of the commitment.
There are a few things that could delay your file from closing on time:
- Seller’s not getting the title company the appropriate documentation that is requested of them to clear the items on Schedule C of the commitment.
- Title issues that have been found during the title examination that will take additional time to clear up, such as heirships, probates, divorces and short sales.
- Changes in the borrower’s loan approval
There are a few things you can do to help speed up the closing time:
- If you are a seller, be sure and communicate with the title company and get any needed documentation to them in a timely manner.
- Have your agent or lender order your survey as quickly as possible.
- Before you make any changes that you think could affect your loan approval, check with your loan processor or loan officer first.
Once the Schedule C items have been taken care of the title company will reach out to you and schedule your closing time and date. The lender will send the closing documents to the title company for your closing a few days beforehand. At your closing the closer will go over the documents that you are signing so that you are aware of what they are exactly. If you have any questions about the documents the closer will go over them with you at this time. You will receive a closing package once you have finished signing, this will contain copies of everything you just completed as well as a copy of your survey.
If you are purchasing your dream home with cash and not using a lender the amount of time to close can be much shorter. Once the Schedule C items have been cleared and the closing time and date has been set, the title company will let you know the amount of certified funds you will need to bring to closing, this would be in the form of a certified check or you can wire the funds. On average a cash transaction can take 5-7 days.
If you have any questions about the length of time it may take, please don’t hesitate to reach out to us here at Red River Title Company.