This Could Be the Quickest Way to Close on a Home Purchase — but There’s a Catch

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It can take quite some time to close on a mortgage. Read on to see how you can set yourself up for a quicker closing. 

The process of buying a home can be a lengthy one, especially in today’s market. That’s because the real estate market is sorely in need of inventory, so it might take you longer than usual to find a property that meets your needs.

But once you get an offer accepted on a home, it could still be many weeks until you’re able to move in. And a big part of that has to do with the mortgage closing process.

Rocket Mortgage says that buyers who are financing a home purchase can expect closing on a house to take 30 to 45 days. In some cases, such as when lenders are backlogged or financial questions or issues arise in the course of finalizing a home loan, that window can get extended even further.

If you don’t like the idea of having to wait so long to actually take ownership of a home you’re buying and move in, there’s one step you can take to make things happen more quickly. But it’s not an easy one.

Are you willing to pay cash for your home?

It’s often the process of finalizing a mortgage that delays the closing process when buying a home. So if you can take a mortgage out of the equation by paying for your home in cash, you might get to move in sooner.

But paying cash for a home is not an easy thing to do. As of March, the median price for an existing home sold was $375,700, according to the National Association of Realtors. That’s hardly a small amount of money to come up with.

Now, it may be that you are able to buy a home in cash because you’ve been saving aggressively for many years, you’re buying in a market where property prices are low, or you recently received a windfall from a family member, like an inheritance. In that case, you shouldn’t necessarily rush to make a cash offer.

Parting with hundreds of thousands of dollars to buy a home could mean having fewer financial options down the line if your circumstances change. You may decide that you’re burned out at work and want a less stressful career. Making a career change that leads to a pay cut may not be doable if you’ve spent your cash reserves in one fell swoop to purchase a home.

Also, when you put a whole lot of money into a home purchase, you lose out on the opportunity to do other things with that cash, like invest it. So you’ll need to consider whether paying in cash and getting a quicker closing is worth the potential drawbacks.

When cash just doesn’t work

Many buyers simply cannot afford to pay for a home in cash. If that’s the boat you’re in, a mortgage may be in your future. But you can move things along quicker by responding to your lender in a timely manner when they ask for information and making sure to provide them with accurate information from the start.

At the same time, have realistic expectations. If you get an offer accepted on a home on June 1, assume you won’t be moving in until mid-to-late July or even August. That way, you can make other arrangements if the process of closing on your mortgage takes longer due to circumstances outside your control.

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