The closing or escrow process starts when the contract is signed by both the buyer and seller.The length of closing is negotiated in the contract. Typical closings are 30 days. Some lenders take 45-60 days to close a loan. Cash deals can close in 10 days or less. Sellers generally want to close and get their money as soon as possible to closing time is pertinent to negotiate. We will address terms and conditions in another blog post.
After the contract/offer is accepted by the seller the buyer is expected to open escrow. This means depositing the earnest money to the escrow/title company.
The execution of the contract begins the inspection period. The number of days varies but 10 days is most common. During this the buyer employs an inspector to inspect the property. After the inspection, the buyer must address the binsr. Buyer may ask for repairs or a credit to reflect purchase price. After both parties are in agreement of the repairs that will or will not be made the lender generally orders the appraisal. If it is a cash deal this part is skipped. After the property meets appraisal value the buyers loan packet can be submit to the lenders underwriting department and should be cleared to close in about a week if there are no issues.
The lender should get a final approval and clear to close a few days before your close of escrow date. With disclosures, this makes it possible for both parties to sign on time. On the COE date once both parties have signed the title company records the transaction at the county recorders office. Only after the property has recorded can the buyer get the keys and enter the property;