Closing on a house involves a plethora of steps and individuals that can sometimes make the process feel never-ending. So, why does closing on a house take so long? The answer lies in the number of people involved in the lending process. Let’s take a closer look at the factors that cause delays in closing on a house:
Examination of Buyer’s Financial Condition: A lender must thoroughly examine the financial condition of the buyer to approve the mortgage. This process includes reviewing bank statements, tax returns, credit reports, and other financial documents. This step alone can take several weeks to complete.
Appraisal Process: A lender will require an appraisal before approving the mortgage. The appraisal process involves assessing the value of the property and ensuring that it matches the loan amount. This can take several days or even weeks depending on how quickly the appraiser can visit the property and complete an assessment.
Title Search: A title search must be conducted to ensure that there are no existing liens or claims against the property. This can take several days to weeks as the title company must go through public records and ensure there are no issues.
Home Inspection: A home inspection is typically required by the lender to ensure that the property meets all necessary safety and health standards. The inspector will examine the property and look for any issues that need to be addressed before closing. This can take several days to complete once scheduled.
Closing Documents: The lender must prepare and provide all necessary documents for the closing process. This includes the loan documents, title transfer documents, and other necessary paperwork. This step can take several days depending on how quickly all documents can be reviewed and finalized.
Coordinating schedules: During the final stages, the schedules of all parties involved need to align. This includes the buyer, seller, agents, and other parties such as attorneys or title companies that may be required to attend the closing. Coordinating the schedules can be challenging and time-consuming, leading to further delays.
As you can see, there are many factors that contribute to the time it takes to close on a house. While it may seem frustrating, it is critical that each step is completed thoroughly and accurately to ensure a fair and legal transaction.
Closing on a house is an involved process that can take a considerable amount of time. The reason for this is due to the number of people that are involved in the process of lending and buying a home. The process typically involves a lender, a title company, an appraiser, a real estate agent, and sometimes an attorney. Each of these individuals has a critical role to play in the process, but each step requires time, effort, and attention to detail to complete correctly.