During the process of buying (or selling) a home, there are typically two nail-biting stages or milestones. For buyers, these are getting pre-approved for a mortgage and closing, both involving not a little anticipation and anxiety. Here we want to examine the closing process because there is so much confusion and misinformation surrounding it. Let’s take a look, then, at the closing process and how long it will take when buying a house in Floresville.
What Is Closing?
Basically, closing is the stage in the home selling/buying process at which dotted lines are signed, money changes hands, and important documents are transferred. The culmination of the process is the transfer of ownership from the seller to the buyer.
Typically, the actual closing for buying a house in Floresville takes place “at the office of the title company.” The usual major things that take place at closing are . . .
- Reviewing and signing all loan documents
- Providing documentation for proof of homeowners insurance and completion of requisite inspections
- The buyer providing a “certified or cashier’s check to cover the down payment (if applicable), closing costs, prepaid interest, taxes and insurance”
- The lender distributing home-loan funds to the title company who then disburses to the seller and agents or vendors.
- Setting up an escrow account to cover property taxes and homowners insurance
This may seem like a lot but is usually accomplished in less than a day. What takes much longer are all the steps leading up to the seller and the buyer sitting down at the closing table on the closing date. To discover more about what to expect, contact a Floresville agent at (210) 216-7722.
How Long Does It Take to Close When Buying a Home in Floresville?
So how long does it actually take to close when buying a house in Floresville? The answer to that question has to come in two parts.
The full closing process – from submitting a mortgage application to the closing date – usually takes around 30 to 45 days (but sometimes more). The good news is that “[with] electronic data gathering and increasing competition, lenders are reducing this timeframe. However, for the 12-month period ending December 2020, the average was 47 days.”
And then there’s the closing itself on the scheduled closing date. “if your loan settlement, or closing, is happening at a table with all parties gathered together, figure on at least an hour or so. There are also mobile, mail, and online closings, which are typically slower.”
Steps in the Closing Process
The closing process for buying a house in Floresville has several major steps or stages, each taking some time and contributing to that 47-day average. They are:
- Application – “typically takes only one day, and can be done as part of the pre-approval process”
- Disclosure – “[T]ypically takes a few days, and it is completed by the lender”. Federal law governs the days required.
- Documentation – usually takes less than a week if you are organized and provide all the necessary documents. It is an ongoing process as some have to be updated as you get closer to closing. New bank statements, etc.
- Appraisal – Often takes three to four weeks because an outside expert must be called in
- Underwriting – usually takes from one to three days while underwriters make sure you meet all criteria. That is AFTER all paperwork is submitted.
- Conditional approval – Typically takes one to two weeks “even if the underwriting process reveals that your documents are in order”
- Cleared to close – Requires a three-day waiting period “after you receive your final clearance and disclosure of terms” to allow review of terms
- Closing and funding – Takes a few hours for signing, review, and transfer of ownership. Once all documents are signed by all parties, the documents are sent back to the lender for review, then the lender approves the documents and releases the money to the title company.
Common Causes of Closing Delays
As we mentioned, the closing process for buying a house in Floresville can be extended owing to one or some of the common reasons for the delay, which include:
- Appraisal coming in too low
- A buyer failing to deposit the down payment in time
- Buyer credit-report issues
- Incomplete loan applications
- Agreed-upon repairs that haven’t been made
- Title problems revealed by the title search
- Discovered liens on the property
Buying a Home in Floresville With an Agent
As we said, the average time for the whole closing process is 47 days. It can, however, take much longer if you encounter any of the delay-causing issues explained above. Many of these can be avoided, though, when you have an experienced Floresville agent and an experienced lender in your corner. Your agent can guide you through the whole complicated process and help you ensure that everything is in order at each stage of the buying process and the lender takes care of all the loan paperwork. Really, there’s no need to make the closing process any longer than it has to be.
It’s a smart move, then, to work with a local agent who knows exactly what it takes to get you to the closing table as quickly and as efficiently as possible. So if you want to make sure that, when buying a home in Floresville, the closing process doesn’t take longer than it has to, contact us today at (210) 216-7722.