The amount of time it takes from offer acceptance to close of escrow varies quite a bit. However, on average, it takes 30-45 days for the entire process. Here’s an overview of what to expect once your offer is accepted:
Inspection Period
After an offer is accepted, there is usually an inspection period of 7-10 days. This allows the buyer time to have professional home inspectors thoroughly evaluate the property and ensure there are no major defects or issues.
The home inspection will look at things like the roof, foundation, electrical systems, plumbing, HVAC, and more. If issues are found, the buyer can request the seller make repairs or credit the buyer at closing for the cost of repairs.
Mortgage Process
During the inspection period, the buyer will also be working hard to get their mortgage loan finalized. This involves providing documentation to their lender and completing tasks like:
- Submitting bank statements, tax returns, and other financial documents
- Getting the home appraised
- Completing a credit check
- Signing initial loan disclosures
The lender will work through the buyer’s financial information, property appraisal, and credit history to approve the loan during this time. Any issues can delay closing, so it’s important the buyer responds promptly to any requests from their lender.
Title Search
There will also be a title search done on the home during this period. This allows the title company to examine the property’s records and ensure the seller has a clear title free of any liens, back taxes, or other issues.
If a problem comes up, it could hold up closing until it gets resolved. But typically the title search process goes smoothly.
Closing Disclosures
Around 3 days before closing, the buyer will receive their final Closing Disclosure from the lender. This outlines the final loan terms and closing costs.
The buyer will review the Closing Disclosure and sign to acknowledge they agree to the terms. This is one of the final steps before closing can take place.
The Walkthrough
Shortly before closing, the buyer will complete a final walkthrough of the home. This is a chance to confirm:
- The property is still in the same condition as when the offer was accepted
- Any requested repairs have been completed
- The home is vacant and ready for the buyer to take possession
If there are any issues found, the walkthrough gives the buyer a chance to address them before closing. Typically the walkthrough goes smoothly and closing can commence.
Closing Day
Once the inspection period, mortgage process, title work, and walkthrough are complete, it’s time for closing! This usually happens 30-45 days after the initial offer was accepted.
On closing day, the buyer and seller will each sign a mountain of paperwork to finalize the sale. This includes the deed transferring ownership of the home to the buyer. The buyer will also wire their down payment and closing costs to the title company or escrow agent overseeing the transaction.
Once everything is signed and money changes hands, the sale is complete! The home officially belongs to the buyer. Typical closing day timeline:
- Buyer wires funds: Morning
- Documents are signed: Late morning/early afternoon
- Keys are handed over: Early-mid afternoon
Congratulations, you’re now a homeowner! After a long process, closing marks the finish line.
Typical Timeline From Offer to Close
Now that you understand the steps between offer and close, here is an estimated timeline:
| Milestone | Estimated Time After Offer Acceptance |
|---|---|
| Inspections | 7-10 days |
| Mortgage Processing | 10-14 days |
| Appraisal | 5-7 days |
| Title Work | 14-21 days |
| Closing Disclosure | 3 days before closing |
| Final Walkthrough | 1-2 days before closing |
| Closing Day | Typically 30-45 days |
However, here are some things that can make the process shorter or longer:
Factors for a Faster Close
- Pre-approval – Being pre-approved for a mortgage shaves off time
- Conventional loan – Government-backed loans require more steps
- All-cash offer – No mortgage means a much simpler process
- Motivated seller – Some sellers will rush to accommodate buyers
- Clean title – No title issues speeds up this part
Factors for a Longer Close
- VA/FHA financing – More steps than conventional loans
- Home repairs needed – Negotiating repairs adds time
- Title problems – Liens, taxes, etc must be resolved
- Appraisal issues – If appraisal is too low, more work needed
- Seller difficulties – If seller drags feet it slows process
Preparing for Closing Costs
While you wait for closing day, make sure you’re financially prepared. Closing costs typically range from 2-5% of the home’s purchase price. They include:
- Lender fees
- Title fees
- Escrow fees
- Property taxes
- Homeowners insurance
- Real estate agent commissions
Your lender will provide an estimate of your total closing costs on your Loan Estimate and later your Closing Disclosure. Have funds available so you can wire the money on closing day.
Getting Ready for Move-In
While waiting for closing:
- Line up your moving company and truck rental
- Pack and purge belongings you won’t move
- Change your address for bills, subscriptions, etc
- Forward your mail through USPS
- Transfer utilities like power, water, internet
- Research service providers like trash pickup
- Purchase home insurance and understand coverage
- Make any needed home improvements or repairs
This will make your transition into the new home smooth and stress-free.
Be Patient During the Process
It can be tempting to want to rush closing so you can get keys in hand sooner. But it’s important to let the process unfold naturally and not put pressure on the professionals handling your transaction.
Closing 30-45 days after offer acceptance is normal. While it may feel sluggish, remember this is a huge purchase and many regulatory boxes must be checked to protect you legally and financially.
Stay patient, be responsive, and before you know it you’ll get the keys and be moving into your new home! It’s a marathon, not a sprint, but crossing the finish line is a wonderful feeling.
Conclusion
From a happy offer acceptance to closing in 30-45 days, buying a home is an exciting whirlwind! Now you understand the typical timeline and sequence of events, from inspections and mortgage approval through to the final walkthrough and closing day.
Knowing what to expect will make the process feel more comfortable and manageable. You’ll also be prepared to handle any potential hiccups that could impact your estimated timeline. Patience and organization will serve you well on your journey to become a homeowner!