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How Long Does it Take to Close on a House In Houston, Texas?

July 7, 2020 | By Reef Merhi

Table Of Contents

You have prepared your credit score and budget. You completed the shopping process. Then, you compared the loans and made the offer. Now, how long does it take to close on a house? Unfortunately, you do not get a mortgage then simply move into your new home right away.

Closing on a house takes about 40 days.

What Happens at Closing?

Once you’ve been approved for a mortgage, the closing process begins. You’ll sit down with real estate representatives and sign the legal documents necessary for the mortgage and home to be transferred to your name.

If you cannot meet with real estate professionals, there are mail-in and online options to complete the closing paperwork as well. Mailing in the application could lengthen the process while completing it online may expedite the process a little faster.

What Payments are Due at Closing?

You are responsible for covering the closing costs during this process which about 3% to 4% of your home’s market price at the time of purchase.

According to Hal Bendrick, CFP of NerdWallet, you also owe other expenses during closing such as:

  • A portion of property taxes.
  • Fees for title insurance premiums.
  • Fees for homeowner’s insurance (a lot of insurance, right?)
  • Any interest that may have occurred before the first mortgage payment.
  • Possible homeowner’s association fees.
  • Third-party fees.
  • Lender origination fees that increase the profit for the real estate agency (this amount can be negotiated)

What Factors are Involved in the Length of Closing

It typically takes 30 to 45 days to close on a home loan. 

But the type of loan, your current financial state, and the length of your mortgage contract can affect how short or long it takes to finalize closing.

The Escrow Timeline

The escrow process can take 30 to 60 days to complete, preferably closer to 30 to 40 days.

According to the Home Buyer’s Guide on Zillow, the escrow timeline is the time taken in between the start of the closing process and the official day of move-in.

The escrow timeline is as follows:

  • Contract is started and the official closing date is decided.
  • You open the escrow account in your name.
  • Home inspection and repair requests are submitted.
  • Complete the mortgage application.
  • Do the home appraisal.
  • Apply for homeowner’s insurance and title insurance.
  • Receive the loan approval.
  • Walk through your new home in case anything else must be done before move-in.
  • Finish closing day. Congratulations! Now you’re a true homeowner.

How long does it take to close on a house when buying with cash?

A cash home sale can close in as few as 4 to 10 business days.

The 2018 Zillow Consumer Housing Trends Report states that only 23% of homeowners purchase their homes using all cash. The closing process is usually shorter for cash buyers because they do not have to worry about financing a mortgage.

The bulk of the closing process is financing the mortgage which is why it can take a month to a month and a half to complete the entire closing process. It is cheaper upfront to get a mortgage, with low down payment requirements of 3% or 3.5%.

If you are able, try to save as much as you can to buy a home in cash and skip the long closing process.

If you are really determined to purchase a home even if it means going through the longer closing process, that’s all the more power to you in making your dreams come true!

The closing process may be tedious with hoops to jump through.

But no need to panic.

Now you can close on your house confidently! Drop us a message before you break a sweat though, we’ll get you the help you need.

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