At a typical lender, closing on a house generally takes around 30 to 45 days from the moment your offer gets the green light. At Tomo Mortgage, because we automate and streamline a lot of the manual back-and-forth in the underwriting process, we’ve been able to cut that time down by about half (as little as 7 days to close). And, since we’re a lot more efficient than the rest of the industry, we’re also able to offer no lender fees and lower interest rates, too.
Of course, this timeline can stretch or shrink depending on factors like the type of mortgage you’re using, how quickly everyone gets their paperwork done, and whether any unexpected issues pop up.
What happens after my offer is accepted?
Once your offer is accepted and you complete your full loan application, we’ll run your credit and begin the underwriting process. During this time, we’ll order an appraisal on the home, you’ll have your inspection, and your lender will confirm all the information provided. You’ll usually get something called a “conditional approval” once we get all the core information verified, and during that time we’re reviewing and finalizing the final details to make sure everything is as expected. If all goes smoothly, you might wrap up even quicker, but it’s good to plan for the full timeline just in case.
Will I know my closing day in advance?
Yes, you should know your closing day in advance. Both the seller and buyer will be notified of the closing date. Buyers should receive their closing documents, including the closing disclosure, at least three business days before the closing date.
Will my house close on time?
Hopefully your home will close on time. However, many times this is not the reality. The industry standard is a 40% on-time close rate—meaning the majority of closings do not happen on time. Reasons can include underwriting delays, difficulty in verifying the buyer’s finances, troubles with the Title or Deed of the home, or contingencies. (Here at Tomo Mortgage we pride ourselves on closing on time 98% of the time, which we’re able to do by automating a lot of the behind-the-scenes back-and-forth).
Some contingencies could be if the buyer is purchasing contingent on once their current property is sold, which could result in a delay. Factoring in that delays are a possibility will save you peace of mind and stress, by making sure you have adequate housing lined up until you are in fact close to your home.
Do all property types close in a similar amount of time?
If you are buying a condo you can expect to encounter a longer closing time. This is because condo sales in many instances have to be approved by a board, which adds another party to the mix.
How long does signing closing papers take?
When it’s time to sign the closing papers, set aside about one to two hours. You’ll be working through a hefty stack of documents, so take your time and don’t hesitate to ask questions if something doesn’t make sense.
How can I prepare for closing?
To get ready for closing, make sure you’ve got all your financial ducks in a row. This includes proof of homeowners insurance and any last-minute paperwork your lender needs. It’s also smart to review your closing disclosure ahead of time, so there are no surprises when you sit down to sign. Remember to bring a valid ID and any certified funds needed for your closing costs.
What else should I expect at closing?
At the closing table, be prepared for a signing marathon—mortgage agreements, promissory notes, and the deed are all on the docket. You’ll also settle any closing costs, covering things like loan origination fees, appraisals, and title insurance. Once the ink is dry and the money’s transferred, the keys to your new place are officially yours!
If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.