When Do I Get The Keys?

Many times I’m asked how long the real estate purchase closing process takes or ” When do I get the keys?” This is important to know if someone is currently renting and wants to know when to give notice and to turn off and turn on utilities. Perhaps they need to determine if they need to renew a current lease.

Finding the right home can take a long time; sometimes much longer than the escrow or closing process. Nowadays, to minimize the time, you first find out from your lender how much home you can buy. Don’t waste time looking at homes out of your price range. But let’s say you are doing things the correct way. You have been pre-qualified by a lender. You’ve been diligently shopping with your Realtor® in your price range. Everything looks good. You make an offer. What can you expect? It depends.

I usually tell people, ” Plan on closing no sooner than 60 days from the offer date, if your offer is accepted.” This is UNLESS IT IS A SHORT SALE. Allow a week or so to negotiate the offer and any counteroffers. If you’re getting an FHA or VA loan, typically we used to allow for a 45 day escrow. With recent appraisal issues and changed requirements in the last year, I suggest ask for 48 to 50 days, if the seller will agree to this. There might even be some lender required repairs needed.

A conventional loan used to be written up for closing 30 days after acceptance, but many needed extensions and it wasn’t always the buyers fault. In my opinion they should now be at least 35 days if seller will agree. So, in this case, our original 60 days would become 42 from the offer date. If you make an all cash offer and no lender is needed, it’s possible to make the offer, negotiate its acceptance, and close all within 30 days.

So, the way the buyer finances the purchase, will determine the time needed. And with some transactions, things go very smoothly and these estimated time frames are beaten considerably and you’ll get the keys sooner. All markets are different; this is typical in the Antelope Valley. But if a short sale is involved — all bets are off.