Is it possible? Can you really close on a house in 2 weeks?
The home sale closing process is notoriously complicated. Often, it can take several weeks or months just to work through all the paperwork, appraisals, inspections, financing, title reports, and other components that make up a closing.
Selling a home the traditional way can take months. Of course, exceptions exist. But while it may be possible to close on a house in 2 weeks, it’s definitely not the norm.
In most cases, closings take much longer. Here’s what you need to know if you’re wondering how you can close on a house in 2 weeks.
Why Does Closing Take So Long?
Knowing what to expect when closing a home sale helps you avoid unpleasant surprises and reduce your stress level. Usually, the closing date is set as part of the contract negotiation. However, that doesn’t mean the date is set in stone.
In most cases, there’s a waiting period between the exchange of earnest money and the acceptance of a contract. When a buyer must secure financing for a home sale, much depends on the lender’s timeline.
Even if you and the buyer agree on a timeline, the lender must be able to do their job within that time. If they can’t, the closing date may be pushed back.
According to Dave Ramsay, this may add several extra weeks or even months to the process. Then there’s the title and escrow to factor in.
For a home sale to close, the title must establish ownership. Any issues that come up during the title search — such as outstanding liens or debts — must be taken care of before the sale can close.
As for escrow, timelines vary from state to state. But before any escrow can close, the terms detailed in the purchase contract must be fully met. The Balance notes just a few of the conditions that must be met:
- Earnest money deposited
- Home inspected
- Seller fulfills obligations such as repairs, pest inspection, home warranty, or roof certification
- Final walkthrough
- Signing and notarizing of deed conveying title
- All documents and notes signed
- Buyer’s funds deposited by lender
What Holds Up a Home Closing?
Often, home closing delays stem from financing issues. Because every underwriter is unique, it’s impossible to predict how long it’ll take to approve a loan… or not.
Common issues that may slow a closing or cause it to fall through at the last minute may include:
- Appraisal coming in too low
- Mistakes or additional debt on buyer’s credit report
- Liens, judgments, or “clouds” on the title report
- Missing financial or insurance information
- Change in buyer’s marital status
- Loan commitment expiration
As you can see, there are many reasons why a closing can fall through at the last minute. However, there’s one other key issue that may slow the closing process: Most buyers and lenders are simply not prepared to close in two weeks.
Closing is a complex process with many moving parts. Especially when it comes to financing, it’s rare to see a traditional home sale that can close within two weeks.
But what if you really need to sell your home quickly? There is a fast way to close on your home’s sale: Sell to HomeGo. Because we purchase homes with cash, you don’t have to wait for a lender to work through the financing process or worry that the sale might fall through at the last minute due to financing issues.
HomeGo can close in even less than 2 weeks — In some cases, as few as 7 days! — but you don’t need to move out if you’re not ready. You can stay in the home, cash in hand, after your closing thanks to our flexible leaseback program.