How Fast Can You Close on a House?

There is no one right way to buy a home. From choosing your lender and the type of mortgage you need to house hunting and the appraisal process, closing day can sometimes feel like it is a million miles away. Especially when you are first getting started.

The good news is that there are steps you can take, even before you apply for a home loan, that can assist in speeding up the process and decreasing your homebuying stress.

Average time for closing on a home

You can usually expect it take between 30 to 60 days to officially close on a house, with the average time falling in the 40 to 45 day range.

However, it is possible to close on a home purchase in 30 days or even less with the right lender by obtaining conditional approval in as few as 10 days. This way your home loan application can move onto underwriting a lot faster. These expedited mortgages start to move quickly through underwriting, so you are able to close that much sooner.

How can you speed up the homebuying process?

There are also steps you can take to assist in speeding up the homebuying process. The right documentation preparation may help streamline your application and make it easier to respond to possible underwriter inquiries.

Here are the documents you will want to collect and have on hand throughout the homebuying process so you can quickly respond to requests from your underwriter:

• Proof of income: Recent pay stubs, W-2s, and tax returns. For self-employed borrowers, profit and loss statements and business tax returns may be required.

• Asset statements: Checking and savings, investment, and retirement account statements from the past few months.

• Identification: A copy of your driver's license or passport.

• Other documents: Additional documents may be required depending on your circumstances, such as letters of explanation , divorce decrees, child support orders, or award letters and proof of deposit for social security or pensions.

Additionally, the following documents will be obtained by your lender:

• Employment verification: Verification of your employment, including your job title, length of employment, and income. Lenders will look for consistent and documented income in the same line of work for at least two years.

• Credit report: A credit report will be obtained as part of the mortgage application process.

Preparing your documents is crucial and may be the key to speeding up the process and helping decrease your overall homebuying stress. It is important that you provide complete and accurate information up front to avoid running into any snags down the line as an underwriter conducts their full financial review.

It is important to remember that you can take your homebuying journey one step at a time. In the beginning, you will be able to go at your own pace. This is the time to iron out your homebuying budget and save for a down payment or focus on improving your credit score. However, once you have applied for a mortgage pre-approval and make an offer to a seller, the homebuying process begins to pick up speed. 

How long can it take to close on a house?

Starting on your journey to homeownership is an exciting time, but there is a lot to do before you reach closing day. The exact amount of time it will take to get the keys in hand will vary based on a number of factors, including:

• Current housing market conditions and availability of homes for sale

• The local market in which you are searching for a home

• Who you choose as your home loan lender

All of the above circumstances, and more, are important to pay attention to when you initially decide to begin the homebuying process. For instance, if you are currently in a seller’s market, it can take longer to find a home you can see yourself living in. Or, if interest rates are high, you may decide it is better to hold off on applying for a mortgage until they drop.

Your lender will also play a big role in how long it takes to obtain approval for your home loan. You may be able to work with your lender to expedite the closing process, so your application can go straight to underwriting to help you save time. That is why it is important to take your time researching potential lenders before you start applying.

What is the fastest way you can close on a house?

Homebuying is a personal journey, so do not worry if your process looks a bit different than someone else’s. That said, if you have a need for speed, then choosing the right lender can make a huge difference.

As you search, pay attention to lenders who offer faster paths to closing. Those that do can help you obtain conditional approval in as little as 10 days and final approval up to 10 days before closing. And as long as you remain in close contact and are ready to respond to underwriting requests, it is possible to close on your new home in as few as 30 days. That way you can move in much sooner and start making your new house a true home.