How Fast Can We Go?
How fast can you get from contract to closing when buying or selling a home? The bottom line is your closing time depends on the loan product the buyer is using. Let's look at examples with a Veterans Administration Loan, Conventional Loan, and when paying with cash.
If you are utilizing a Veterans Administration (VA) Loan you should expect 40-45 days to close. The VA process is a bit more involved and therefore takes longer than when getting a conventional loan.
If you are obtaining a conventional loan, a typical closing/escrow period is 30 days. However, there may be a way to close faster. And closing faster could be to your advantage if you are in a multiple offer situation.
Closing faster reduces the carrying costs a seller has to pay prior to completing their sale of their home. Carrying costs are taxes, insurance, utilities and any other expense to carry the house once they've moved out. If you can close faster and thus reduce those for the seller, your offer may be more attractive than those it is competing with.
How do you close faster? Work with your lender ahead of time to get personally underwritten prior to making an offer. Then once under contract, the lender is simply getting the house or condo through the underwriting process. This can eliminate days to weeks of the process ensuring you can have a quicker close.
The fastest way to close on a house is when you pay with cash. A title company/settlement company can typically close a real estate purchase in 14 days if the buyer is paying with cash.