One of the most common questions from our clients over the years is “how long does a Real Estate transaction take?” The answer to this question depends on the financing which you are going to be using to buy a home.
If you plan on buying a home with cash, you can complete the Real Estate transaction in as little 12 days, but, if you are getting a mortgage, you can expect to close on the home you want to purchase in about 30 days.
Why Do Loans Take Longer?
There are a variety of reasons why home loan takes longer to close versus a buyer who pays all cash for a home.
Some of these reasons include:
- Home inspection
- Release of contingencies (if demanded)
- Final walk-through for buyer
- Appraisal of property (by appraisers lender)
- Buyers signature on every loan document
- Deposits made from buyer to lender
- Deposit of down payment from buyer and payment of closing costs
Pre-Approval vs. Pre-Qualification
Many times a buyer who has been pre-approved for a mortgage loan will be able to close faster than someone who has been pre-qualified for a mortgage.
Pre-approval is different because it involves more verification upfront before the buyer can sign the purchase contract and this moves the pre-approved buyer a few steps ahead of a buyer who has only been pre-qualified for a mortgage loan.
What Can Cause A Closing Delay?
Although some buyers might not want to think that the closing of the home they want to purchase might be delayed, it’s possible for delays to occur for the following reasons including:
- Low appraisal
- Additional debts found on the buyers credit report
- Mistakes on a buyers credit report
- Liens or judgements which have been filed against seller or buyer
- Change in marriage status
Good News for Buyers
At Fred Sed & Associates we work with select group of lenders who have a history of approving financing and closing a Real Estate transaction in as little as 21 days!
If you want the advantage over other buyers when you start searching for a home in Irvine, contact Fred Sed & Associates today by calling us at (949) 272-0125.