There’s a lot that goes into establishing a closing date for a home purchase — and all it takes is one small thing to push back your chosen date.
You can experience a lot of problems and frustration when you have to change the date of your closing. It’s best to keep all of the following min mind.
How long does it typically take to close on a home?
Some lenders can process a minimal documentation loan in as little as a day and schedule the closing within two weeks. Most lenders take between 30 and 45 days to underwrite residential home loans, though. Some government-backed loans can take more like 60 days to close.
Sometimes lenders may request additional information, which may delay a property’s closing for a short time. Many purchase agreements have a one-to-two-week automatic closing date extension provision to account for lenders’ requesting additional documents.
Why closing delays occur
Many factors can impact how quickly a residential real estate closing occurs. It matters whether a buyer is paying cash or securing financing for their purchase, as it can take time for funds to be available when transactions involve third-party funding. Your lender’s request for additional documentation can result in a delay in the processing of your loan. Discrepancies between the appraised and agreed-to purchase amount can also slow down the closing process, especially if you need to come up with the difference in funds to move forward with this process.
The date a closing occurs is also contingent upon how long it takes to run a title check. Lenders may request additional information if they encounter defects in the title.
In addition, most prospective homeowners will hire a home inspector to come in and check out the major systems and structure of the house that they’re looking to purchase. Any issues, including a pest infestation, may push the closing back.
Can you get out of a home purchase contract?
The purchase agreement that you sign is a legally binding contract. You may have a due diligence period during which you can rescind the agreement without giving any justification for doing so. You may also have contingencies built into the agreement, such as mortgage or home inspection contingencies, that provide you with justifications to rescind the agreement. You may have limited options for canceling your contract without any penalties once the due diligence period has lapsed, though.
A residential real estate attorney can review your purchase agreement to see what it says about you or your seller extending the closing date on your Pennsylvania home purchase. A Philadelphia lawyer can also help you understand your right to cancel your contract altogether if you need to do so.