When buying or selling a home, one of the most common questions is “How long does the closing process take?” While the answer can vary based on several factors, understanding the typical timeline and what happens during each phase can help you navigate the process with more confidence.

What Is the Closing Process?

The closing process refers to the period from when a purchase contract is signed to when the buyer gets the keys to their new property. This involves a series of steps, such as property inspections, securing financing, title searches, and document preparation.

The Average Timeline for Real Estate Closings

The average real estate closing typically takes 30 to 45 days. However, this can vary based on factors like the complexity of the transaction, loan approval speed, and any potential roadblocks along the way.

Let’s break down the key stages:

1. Offer acceptance (day 1)

The clock starts ticking once the buyer and seller agree on the terms of the sale and sign the contract. At this point, both parties are legally bound to the agreement, and the buyer will usually make an earnest money deposit.

2. Inspection period (days 1-10)

Real estate contracts usually include an inspection period, during which the buyer can hire a home inspector to check for any issues. This period can range from 7 to 10 days. If any problems are discovered, the buyer may request repairs or negotiate the price before moving forward.

3. Financing approval (days 1-30)

For buyers using a mortgage, the lender will start processing the loan. This includes underwriting, appraisals, and verifying the buyer’s financials. Getting final loan approval typically takes 20 to 30 days. Delays can occur if there are issues with the buyer’s credit, changes in employment, or discrepancies in documentation.

4. Title search and examination (days 15-30)

During the financing process, the title company conducts a title search to ensure there are no liens or legal claims against the property. If any title issues arise, such as unresolved mortgages or judgments, these must be cleared before closing. Title searches usually take about 5 to 10 days to complete, depending on the city or county and property history.

5. Closing disclosure and final walkthrough (days 30-45)

A few days before closing, the buyer receives the Closing Disclosure (CD) form from the lender. This document details the final loan terms, closing costs, and fees. By law, the buyer must receive the CD at least three business days before closing. Additionally, the buyer will conduct a final walkthrough of the property to ensure it’s in the agreed-upon condition.

6. Settlement (day 45)

The final step is the settlement, where both parties sign the necessary documents, the lender wires the funds, and ownership of the property is officially transferred from the seller to the buyer. Many states (including Virginia) allow wet closings, meaning the transaction is completed on the same day the documents are signed, and the keys can be handed over immediately after settlement.

Factors that Can Affect the Timeline

Although the average closing timeline is 30 to 45 days, a few factors affect the process:

• Type of loan – FHA, VA, and USDA loans often require additional paperwork and stricter underwriting, which can extend the timeline.
• Title issues – Problems like undisclosed liens or ownership disputes may take weeks or months to resolve.
• Negotiations – If repairs or price reductions are needed after the inspection, this could add several days to the process.
• Busy market – In hot real estate markets, delays may occur due to high demand for appraisers, inspectors, and title services.

By understanding each step and working with experienced professionals, buyers and sellers can minimize delays and help ensure a smooth transaction. Contact Linear Title & Escrow in Virginia Beach, VA to learn more about the closing process.