Whether you’re buying or selling a home, you probably want to close as quickly as possible. For most financed purchases, the closing process takes 40 to 50 days from the time an offer is accepted.
The average time to close on a home purchase loan is 44 days, according to recent data from ICE Mortgage Technology.[1] All-cash sales, on the other hand, can close in as little as 7 to 10 days.
Your specific timeline will depend on factors like your financing, appraisal results, loan type, and how quickly you provide documentation. Read on for a detailed breakdown of the closing process, typical timelines for different loan types, what delays to watch for, and how to close faster.
What’s the average amount of time it takes to close on a house?
In general, the type of loan is the biggest factor in how long closing takes. An all-cash purchase from an investor or company that buys houses for cash is the fastest route, often closing in fewer than 10 days. Mortgage-financed purchases typically take 45–50 days.
These are the average closing times for different types of loans:[2]
| Type of sale | Average closing time |
|---|---|
| Conventional loan | 44 days |
| FHA loan | 44 days |
| Refinance | 42 days |
| VA loan | 40–50 days |
| All-cash purchase | 7–20 days |
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What happens during closing? A step-by-step timeline
After your offer is accepted, closing typically follows these steps:
| 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 |
1. Loan application (1 day)
Even if you’re pre-approved, you’ll need to complete a full mortgage application with your lender.
Disclosure and documentation (7 days)
Provide financial records like tax returns, pay stubs, and bank statements. If your situation is complex, your lender may request additional documentation. Your lender will also issue a Loan Estimate and later a Closing Disclosure, which you must receive at least 3 days before closing.
» Use this list of documents to help you prep for this stage of the process.
Home appraisal (7-14 days)
A licensed appraiser evaluates the home to ensure its market value supports the loan amount. A low appraisal can cause delays or renegotiation.
» Here’s how appraisal values and market values differ.
Underwriting (1-3 days)
The underwriter reviews your financials and the appraisal to make a final loan decision.
» Get more underwriting insights in our complete guide.
Conditional approval (7-14 days)
The underwriter may request more information before final approval. Prompt responses here can help avoid delays.
Cleared to close (3 days)
You’ll receive your Closing Disclosure, review final terms, and confirm your closing date.
Closing (1 day)
You sign documents, pay your down payment and closing costs, and receive your keys. This process typically takes 1–2 hours.
How much are closing costs?
“Closing costs” refer to the fees and charges paid to lenders, agents, title companies, and others to finalize the sale.
Buyer closing costs
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: 0.5–1% of the loan amount
- Application and credit report fees: Up to $30
- Appraisal fee: $358 on average[4]
- Home inspection fee: Around $343[5]
- Survey fee: Average $2,300[6]
- Recording fees: About $125[7]
- Title insurance: 0.1–2% of home price[8]
- Home insurance: Average $1,500 a year[9]
- Escrow payments: Often required upfront for taxes and insurance
- Attorney fees: $750 to $1,250, in states where required
- Buyer agent commission: Post-NAR settlement, buyers may be responsible for their agent's fee (~2.58%), though this is negotiable
Seller closing costs
Sellers usually pay 2–4% of the sale price,[10] plus their listing agent’s commission (typically 2.74%). Costs may include:
- Transfer taxes: Varies by location, 1-5%[11]
- Listing agent commission: Average 2.74%[12]
- Attorney fees: $750–$1,250 (if applicable)
» Check out the true costs of selling your house.
What causes delays when closing on a house?
Some common issues can drag out the closing timeline:
- Missing or incomplete documentation
- Low home appraisal
- Issues with title or liens
- Delays in underwriting or verifications
- Slow responses to lender requests
- Last-minute financial changes (e.g., taking out new credit)
- Insurance not finalized
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.
For buyers
- Get pre-approved before making an offer
- Respond to lender requests quickly
- Have financial documents ready
- Choose a responsive lender and title company
- Don’t open new credit accounts or make big purchases
- Line up homeowners insurance early
For sellers
- Clear any liens or title issues in advance
- Consider a pre-sale inspection
- Be flexible with negotiations and timelines
- Disclose known issues upfront
- Have your mortgage payoff info ready
Can a buyer or seller back out before closing?
Yes, but it depends on the terms of the purchase agreement.
Buyers can often cancel the deal without penalty if contingencies (like financing, inspection, or appraisal) aren’t met.
Sellers have fewer legal outs. Backing out after accepting an offer can expose the seller to legal action, unless the buyer breaches contract or agrees to walk away. One common scenario of contract breach 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
Closing on a house usually takes 30 to 50 days, but timelines vary based on financing, documentation, and deal complexity.
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!