Understanding the Timeline: How Long Does It Take to Close on a House?

The process after your offer is accepted until you get the keys to your new home is known as closing. During this time, you schedule appraisals and inspections, formally apply for your mortgage, and pay any required costs. The average closing time in November 2024 was 44 days, according to ICE Mortgage Monitor. Learn more about how the closing process for buying a house works and the steps you can take to shorten it.

What does closing on a house involve?

Many different steps have to take place between the time period when the seller first accepts your offer on the home and the day you’re ready to sign the final closing papers. Here’s an overview of the process:

• Pay the earnest money: Once the seller has accepted the purchase agreement, you must deliver the earnest money to be held in an escrow account while the home sale is underway. You’ll typically pay between 1% and 3% of the sale price in earnest money, and if you break your agreement for an unqualified reason, you’ll lose this deposit. 
• Schedule a home inspection: Though not required, it’s a good idea to schedule a home inspection before closing. During a home inspection, a licensed inspector will thoroughly examine the property and look for hidden problems. An inspection typically costs between $300 and $500. 
• Conduct a title search: If you’re taking out a mortgage, most lenders will require a title search prior to closing. A title search shows that the seller has the right to sell you the home and will reveal whether there are any liens against the property. 
• Schedule a home appraisal: A home appraisal is another lender requirement when you get a mortgage. A home appraisal determines whether the property is worth what you’re paying for it. Your lender will typically order the appraisal, and you’ll pay for it as part of your closing costs.
• The loan is cleared to close: Once underwriting has signed off on all the loan documents and issued a final approval, you’re ready to close on your home. Your lender will send you a copy of the closing disclosures, which will explain all of the fees that go into your closing costs.
• Pay the closing costs: Once the closing day has arrived, you’ll pay your closing costs and sign that final paperwork. Closing costs typically cost between 2% to 5% of the total loan amount. 

How long does the closing process typically take?

According to Jeff Lichtenstein, CEO of Echo Fine Properties, the average time to close on a house is between 30 and 45 days. However, the exact timeline can vary depending on the housing market, the type of loan you’re taking out, and any issues that arise.

Factors that can affect your closing timeline

Although the average closing takes up to 45 days to complete, this process can take more or less time, depending on your specific circumstances. For example, if there are issues with your financing, title problems, or unmet contingencies, the closing can get pushed back by several days or weeks. 

“Mortgage contingencies and homeowner approval are the two biggest outside factors,” Lichtenstein says, explaining that these problems are largely driven by the buyers and sellers. “Especially if the buyer is selling another home and needs those funds. For older people, the stress of moving comes into play, and having enough time to pack or find another home can be a factor.”

Steps you can take to speed up the closing process

Unfortunately, many of the factors that affect the closing process are outside of your control. But there are steps you can take to improve the odds your closing will go smoothly and quickly:

• Obtain pre-approval: According to Lichtenstein, getting pre-approved for your mortgage, can help shorten the closing process.
• Get documents in order: Your underwriter may ask for additional paperwork, so be prepared to submit additional information, such as pay stubs or tax returns. Responding to requests promptly can help closing go smoothly. 
• Get inspection and insurance: Some tasks, such as scheduling a home inspection (if applicable) or finding homeowners insurance, will be up to you, so get these taken care of quickly.

Seamus Nally, CEO of TurboTenant, says the mortgage application process is the biggest factor influencing how long it takes to close. “It takes some time after applying for a mortgage to get assessed and secure a final offer from the lender,” he says. “So for cash purchases of a home, the closing time is cut significantly shorter since the mortgage application process is avoided altogether.”

What to expect on closing day

On closing day, you’ll sign the final documents, pay your closing costs, and take ownership of your new house. Closing on a home can be intimidating, especially if you’re a new home buyer, but knowing what to expect can make this process easier.

The closing will most likely take place at a title company, and you may have a closing agent, real estate agent, or real estate attorney present. You’ll need to bring a government-issued ID, proof of homeowners’ insurance, and a copy of the purchase contract. You’ll pay your closing costs via a wire transfer or cashier’s check.