By Jennifer Tucker
January 16, 2023 | 3 Min. Read
One of the most exciting steps on the home-buying journey is the day you’re handed the keys to your new abode. It’s probably been a long road, and you can’t wait to move in! But before you step over the threshold, you’ll need to get through the closing process.
Let’s look at the process of closing on your home loan to understand how it works and answer some frequently asked questions about what to expect.
Especially if you’re a first-time homebuyer, you might be wondering exactly what it means to close on a house. When you buy a home, closing is the last step in the process. It is when you finalize all the details of the transaction and sign the final paperwork on your loan.
One of the first questions a lot of homebuyers ask is, “How long does closing take?” The process of closing on the purchase of a home can take anywhere from 7 to 60 days, and the timing depends on multiple factors.
According to the Ellie Mae Origination Insight Report, the average time to close a home in 2021 was 50 days.
Closing day is the day you sign the final paperwork on your loan. Expect to set aside 1.5 to 2 hours for the closing meeting. Buyers usually attend the closing meeting in person, but sellers can sometimes sign the paperwork ahead of time and don’t need to be in attendance.
During the closing meeting, you’ll sign documents and make your down payment; then, your lender will wire the balance of the sale price. Here’s how to prepare for your closing meeting:
In some cases, the sellers will hand over the keys on the same day as closing. Generally, however, sellers have 7 to 10 days to vacate the home after the closing date.
Your closing date can be pushed back (by days or weeks) if you encounter unexpected issues. Some things that might delay closing on a house include:
The amount you pay in closing costs will vary but commonly depends on three key factors:
Marine Credit Union offers a variety of free budgeting and financial planning tools. Learn all about closing costs and use our free online calculator to calculate your home closing costs.
Usually, the buyer is responsible for paying closing costs, and the amount will vary from transaction to transaction.
Marine Credit Union can help you find the right mortgage loan to reach your goals. Keep your loan in the community. Get in touch with a Marine Credit Union lender today.