Buying a home is an exciting experience. A move is always preceded by a need for something, like more space, more amenities, more features, or a more convenient location. There are so many possibilities awaiting you in your new home, so it’s expected that you want to be reaping the benefits as soon as possible. You may even want to push to close early to make it happen. Believe me, we love to see closings go so well that they happen early; however, you may not be able to do so. Here are some reasons why:
- Underwriting. It takes 30-45 days, depending on the type of loan, to get the underwriting portion completed. What exactly happens in underwriting? The underwriter is the person who has the final say on if you should receive the loan or not. They look into your credit history (more so than the loan officer), order an appraisal on the house, evaluate the results of the appraisal, and calculate your risk level, including verifying your employment and obtaining any additional info they need. This all takes time, especially when they’re working on more than one loan at a time.
- The Sellers. If the home is occupied, the sellers need time to pack, arrange for other housing, and move. This means they’re also relying on other people’s schedules and it will likely take a month to work it all out.
- Repairs. If you had a home inspection and requested repairs, the sellers need time to have those repairs made. The size of those repairs, available materials, and the contractor’s/handyman’s schedule determine how long it will take to get them completed. You want these repairs to be made prior to closing, because any breach of contract afterwards will cost more money and legal counsel.
- Title Problems. Your real estate attorney will do a title search on the property. If any defects – unreleased liens, fraud, forgery, co-owners, missing heirs, conflicting wills, etc. – are found, that may hold up the closing. The proper people will have to be contacted, paperwork filled out, etc.
Every contract and property has its own special circumstances that need to be addressed. Your Realtor will be able to explain the expected timeline for closing based on those circumstances. If all is going smoothly, it could be possible to move up your closing, but that should be discussed with your Realtor, who knows the ins and outs of the real estate process.
If you’re thinking of buying a home in the greater Wilmington area, give us a call or send us a message through our Contact page!