FAQ #2 What is a realistic time line to close on my home?
Q: What is a realistic time line to close on my home?
A: You should plan on a minimum of 45 days from the binding agreement date to closing.
Whether you are on the buying or selling side, this is the question that I hear most often.
Let's go over some of the factors that can impact the time line in getting to closing.
1. Type of financing. With a traditional FHA, VA or conventional loan things generally run pretty smoothly. When you add anything "outside of the box" it may take longer.
2. Type of seller. Closing with a traditional private party seller will be generally faster than a corporate seller, such as a bank or government entity.
3. Property condition. Based on the type of financing you choose, property condition can play an important role. Having unexpected repairs flagged on an FHA or VA appraisal could delay the transaction by a few days up to several weeks.
4. The appraisal. Every home that is being purchased with a traditional home loan will be subject to a third party appraisal ordered by the lender. Appraisals seem to be performed at leisure. Generally, once the appraisal is order by the lender, you can expect a minimum of 7 days before the official report is returned.
5. Price vs. Value. Relating back to the appraisal, if the contract sales price is higher than the assigned appraised value. This can be handled any number of ways. See the full article below for more details.
6. Failure to respond in a timely fashion. Once there is a binded contract, everyone needs to move quickly in processing the required paperwork.
7. Volume. The number of loans in process at any given lender can slow down the underwriting and closing process.
Volume can also effect the scheduling availability for the closing attorney or settlement agent.
Choosing the right buyer's agent or listing agent to manage the contract time lines can keep your closing on schedule.
A big part of my job as your real estate agent is to assist the players in your transaction cooperate in an efficient and timely manner while protecting your assets.
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