Whether you’re buying or selling a home, you likely want to close as quickly as possible. But unless it’s an all-cash purchase, such as selling to a company that buys houses for cash, it will usually take at least 6 weeks to close on a house.
Data from ICE Mortgage Technology shows that as of October 2024, it takes an average of 42–44 days to close on a mortgage loan.[1] However, that timeline can vary based on the buyer’s credit, employment, and type of loan, as well as other factors.
That said, there are measures buyers and sellers can take to speed up the closing process — or at least keep it from dragging on. Read on to learn everything you need to know about how long it takes to close on a home: how it works, typical timelines and costs for buyers and sellers, and tips on how to speed up the process.
What’s the average amount of time it takes to close on a house?
In general, the type of loan will be the leading factor in how fast you can close on a house. An all-cash purchase is your best bet if you want to close on a house in less than 30 days.
These are the average closing times for different types of loans:[2]
⚡Need to close fast? Get competing cash offers from cash buyers nationwide with Clever Offers. Seeing your offers is free, with no obligation. Get your cash offers today.
| Type | Days |
|---|---|
| Conventional | 44 |
| FHA | 44 |
| Refinance | 42 |
| VA | 40–50 |
| All-cash purchase | 7–20 |
Let’s go through the process step-by-step to see precisely why it takes so long to close on a home.
Step-by-step average closing time on a house
What actually happens during those 40 some-odd days? Once an offer is accepted, a typical loan moves through these phases:
| Steps | Timeline |
|---|---|
| Application | 1 day |
| Disclosure and documentation | 7 days |
| Appraisal | 7–14 days |
| Underwriting | 1–3 days |
| Conditional approval | 7–14 days |
| Cleared to close | 3 days |
| Closing | 1 day |
Application
(1 day)
Even if you’re pre-qualified or pre-approved for a mortgage, you’ll have to fill out your lender’s complete loan application. This enables them to do a thorough investigation into your finances. You may have to pay an application fee and a credit report fee at this point.
Disclosure and documentation
(7 days)
You’ll need to provide financial records like tax documents, pay stubs, bank statements, and asset statements to your lender so they can verify your finances. If you have an unconventional or complicated financial situation, your lender may ask for additional documents or even written explanations of unusual financial activity. Additional rounds of requested documentation can extend this part of the closing process.
With your finances in check, your lender will compile the closing disclosure, a document that specifies the exact terms of the loan, your projected monthly payments, and the closing costs and fees. Federal law requires your lender to provide your closing disclosure at least three days before closing.
» Use this list of documents to help you prep for this stage of the process.
Home appraisal
(7-14 days)
The appraisal simply assures your lender that the home’s market value is in line with the amount of money they’re loaning you.
The lender will hire a licensed appraiser to produce an appraisal report. An appraisal that comes in low can result in modifications to your loan and delays in closing. (Note that the home appraisal is different from the home inspection.)
» Here’s how appraisal values and market values differ.
Underwriting
(1-3 days)
During this stage in the process, an underwriter working for your lender will look at all the financial information you’ve provided and make a final decision on your loan approval and amount.
» Get more underwriting insights in our complete guide.
Conditional approval
(7-14 days)
If the underwriter wants a more complete look at your financial information, they may request additional documents. During this period, they may conditionally approve your application pending further scrutiny. You can shorten the conditional approval period by quickly providing all requested documentation.
Cleared to close
(3 days)
There’s a mandatory three-day waiting period between approval of your loan and closing. You should receive your Closing Disclosure at this time. Review it carefully.
Closing
(1 day)
On closing day, you’ll sign all official paperwork, wire all required funds (down payment, closing costs, etc.), and get the keys to your new home. Typically, closing takes an hour or two.
How much are closing costs?
“Closing costs” is a blanket term for various fees and transaction costs associated with buying and selling a home. These fees are paid to the lender, real estate agents, and other third parties like title and escrow companies.
Closing costs are usually split between the buyer and seller, with the buyer paying the lion’s share. Here’s how they’re typically divided:
Closing costs for buyers
According to Freddie Mac, buyers can expect to pay 2-5% of their home’s purchase price in closing costs.[3] Typical buyer closing costs include:
- Loan origination fee
The lender charges this fee for processing and underwriting your loan. It’s usually between 0.5% and 1% of your loan amount.
- Application and credit report fees
Some lenders may charge you to submit a loan application and for the credit score check that comes with it. The average credit report fee is $30 or less.[4]
- Appraisal fee
Your lender will want a professional appraisal of the home to ensure its market value is in line with the amount of your loan. The average national home appraisal fee is $357.[5]
- Home inspection fee
You’ll want to get a home inspection to make sure the property doesn’t have any serious problems. A home inspection typically costs around $343.[6]
- Survey fee
A professional survey establishes the official boundaries of your property and may clarify any existing zoning or use restrictions. The average cost of a survey is $543.[7]
- Recording costs
Your local government will charge you a fee to officially record the transfer of the property from the seller to you. Average U.S. recording costs are $125.[8]
- Title insurance
A title company routinely clears titles of competing claims during a conventional sale. Still, you’ll want to purchase title insurance in case any missed claims surface in the future. Title insurance is typically 0.5% to 1% of the home’s purchase price.[9]
- Home insurance
Many lenders require you to pay for your first year of homeowners insurance before closing. The average yearly cost of home insurance is $1,500.[10]
- Escrow payments
You may be required to put money into an escrow account to cover your first-year home insurance premiums and property tax payments.
- Attorney fees
Some states require an attorney to oversee the closing process. In these states, attorney fees are usually split between buyer and seller. Average attorney fees for a real estate transaction are $750 to $1,250.
- Buyer agent commission
Traditionally, the seller paid both the listing agent’s commission and the buyer’s agent’s commission. However, a recent lawsuit settlement with the National Association of Realtors® (NAR) has changed this arrangement.
Buyer’s are now responsible for paying their agent’s commission, which is on average about 2.58% of the purchase price — although this may be negotiable. While sellers are no longer obligated to pay both agents’ commissions, many are still offering a “buyer’s agent commission concession” to attract buyers.
Closing costs for sellers
Sellers generally pay fewer closing costs but are still responsible for some fees. (Sellers often pay for things like pre-sale inspections and renovations, but those expenses aren’t included here.)
According to Freddie Mac, seller closing costs usually amount to 2-4% of the home’s sale price, plus any commission the seller is paying.[11] These costs include:
- Transfer taxes
This fee is levied by the local government and may or may not apply. Transfer taxes average 1-5% depending on location.[12]
- Listing agent commission
Sellers are responsible for paying their listing agent’s commission. The average listing agent commission is 2.74%.[13]
- Attorney fees
If your state requires an attorney to oversee the closing process, this fee will likely be split with the seller. Attorney fees typically range from $750 to $1,250.
» Check out the costs of selling your house.
Mistakes that can prolong the closing process
Everyone wants the closing process to be as short as possible. These are some of the most common missteps that end up prolonging the process.
Being disorganized or unresponsive
You’ll need to provide a lot of financial documentation to your lender, and they may need multiple rounds of additional information. For a fast closing, gather required documents ahead of time and be available for follow-up questions.
Failing to get pre-approval
Pre-approval requires your lender to take a comprehensive look at your financial profile, giving you a running start on your loan approval. While they’ll have to re-confirm all this information once the actual underwriting process begins, getting pre-approval can still shorten the overall duration of closing.
Hiding financial irregularities
If your loan underwriter uncovers any financial irregularities that weren’t previously disclosed, it can cause a significant delay.
Not getting homeowners insurance
Your lender will require the property to be insured before closing. Waiting until the last minute to get insurance will delay your closing.
A low appraisal
If the home appraisal comes in lower than the loan amount, you’ll have to make up the difference out of pocket or persuade the seller to accept a lower price.
How to speed up the closing process
The good news is there are some easy ways for buyers and sellers to remove obstacles and complete the closing process smoothly. Let’s start with what buyers can do.
For buyers
- If the home inspection finds problems, accept a credit instead of asking the seller to take care of repairs.
- Don’t outbid the appraised value of the home. A low appraisal often leads to serious delays.
- Get your paperwork in order before starting the closing process.
- Get homeowners insurance as soon as the appraisal comes in.
- Don’t make major purchases or open any new lines of credit. Big changes to your financial profile during closing can reset the process.
For sellers
- Resolve any liens on the home. At the very least, notify the title company about them upfront.
- Consider a pre-sale inspection. This will enable you to proactively tackle any needed repairs that could trip up a later sale.
- Pass on concurrent closing. If you’re selling and buying at the same time, be more flexible with your timelines. Closing both loans at once often complicates things.
- Be flexible at the negotiating table. The buyer may ask for a concession to pay their agent’s fee, or the appraisal could come in low. Work with the buyer or lender to keep the sale moving instead of insisting you stick to your terms.
Can a buyer or seller back out of a sale after the offer is accepted but before closing?
Sometimes. A buyer can back out of the sale if they have the right contingencies in the sale contract. Say they have an inspection contingency, and the home inspection discovers serious issues. The buyer might be able to use that contingency to back out of the deal and keep their earnest money deposit.
It’s a little more complicated for sellers to back out of a sale, but it’s not unheard off. One common scenario is if the buyer doesn’t close on time. If the buyer misses their deadline, the seller can cancel the sale, although this isn’t necessarily in their best interest. More often, they’ll work with the buyer to extend the closing date.
The bottom line
Buying and selling a home is a complex financial transaction that can be expensive for both parties. In many ways, it’s remarkable that closing on a house can be completed in only 43 days.
You can ease some of the significant pressure — financial and otherwise — by working with a full-service, low-commission agent from Clever Real Estate. You’ll get the exact same service and support you’d expect from a traditional real estate agent but save up to 50% on commission fees. That could amount to thousands of dollars back in your pocket. Find an experienced local agent today.