Charlotte NC| How Long Does it Take To Close on a Home In Charlotte? RE FAQ's
September 3rd, 2008 Categories: FAQs About Charlotte
Once the contract is negotiated, how long does it take to close on the home? How long until move in day?
30-45 day is most common, but why 30 days?
This is the amount of time it takes for the 1)lender to process a typical loan application (VA and FHA can be longer) for the Buyer 2) the time it takes to get through the buyer inspection and repair process and 3) if the home is a resale, the time needed for the sellers to move out, clean and get the home ready for the buyers.
It is important to note that the time to close is set at the offer stage, usually by the buyer but is a negotiable item. I know New Yorkers are used to 90 day closings, and a much more complicated process. It is a comparatively streamlined, and much less expensive to close on a home here. Lets look at these factors one at a time.
First- you will make application for the loan within a few days after the contract is accepted by the seller. Assuming you’ve been pre-approved by a Lender, if you are employed, have decent credit, and a down payment, the process will be fairly smooth provided you give the lender ALL the material they request. Sometimes the request seem crazy, but there is a reason for every one and if a lender says you need to provide “X, Y and Z” you should assume that nothing short of X,Y and Z will get you the loan. It isn’t negotiable and the sooner you deliver the documentation, the more likely your application goes forward smoothly and your loan and home close on time. Pre-approval is the key here, for those with W-2 and those who are self-employed, to prevent unpleasant surprises during the application process.
The Inspection Clause of the contract allows for the Buyer’s home inspector to inspect the house, the buyer to request some or all of the list to be repaired, and allow time for those repairs to be made.
Sounds easy the way I wrote it, but in real life this is often a point of contention, discussion and sometimes disagreement. When it works completely smoothly, the buyer makes the request, the seller agrees, and the repairs are done in a timely manner so the contract can close on time. Bear in mind, some construction repairs may take longer to schedule than contract time allows, and this may alter your closing date. A sellers refusal to make repairs may even make a Buyer consider opting out of the contract. 2 of 3 contracts go relatively smoothly through inspections. Buyers and Sellers please… Insist your real estate Broker explain the Inspection Clause thoroughly to understand your rights and obligations.
30-45 days is normally enough time for a Seller to pack and move out their belongings, but sometimes, they may request a 60 days close, for example if they have a new home almost complete and just want to move their things into the new home (not move twice.) Or there are a variety of other conditions that may make a seller desire a different closing date. Occasionally, Buyers request a 60 day close– and this still falls within normal and customary, but Buyers may lose the last negotiating point (price concession) with a delayed closing.
There are lots of potential places to get off track, but with everyone working together, the majority of closings do go through in that 30-45 time period. The one way I know to consistently Not close on time, is to use an online lender. This is coming from someone who almost lives online and Google’s everything– you need a lender with an office you can walk in to and see her or him.
Remember- You can negotiate closing dates, inspection dates and loan contingency dates. I’ll examine these points in a future post.
Need more details? Other Questions? Please don’t hesitate to give me a call at 704-351-1519.
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It is a strong buyers market here in the greater Charlotte area, Lake Wylie, Lake Norman, the whole area for new homes and re-sales. We work with Buyers and Sellers every day. You can quickly compare area prices with the links below, or just give me, Terry, a call at 704-351-1519. I am a Charlotte broker specializing in relocations, 2nd homes–buying and selling real estate of all kinds- and will represent only you.
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