Why does closing on a home take so long? ?

Question

What makes the process take so long? After you find the home and you are approved for the mortgage, what is left? I have heard processing. But when you are approved (not pre-approved) for the loan, don't they process all of your paper work then? Any help or information is welcomed.......not that I have a choice lol!

Answer 1

Well it depends greatly on your lender, and to a lesser degree, your realtor.  They have to have the home inspected (to make sure there are no major flaws both for your protection and the lender).  They also have to get the house appraised (to make sure it's not worth less than you are buying it for) and they have some city paperwork.

They also check the title to make sure no other persons have a lien against the property.  For instance if the previous seller still owed his bank on that property or if the current owners defaulted on a debt and the person they defaulted on put a lien on the house to ensure they eventually got paid.  

A house cannot be sold if it has a lien against it, and if a mortgage company rushed through the process too much, they might miss one of those things and end up with a costly legal issue or more.

It can take anywhere from 15 days to 30 days.

Answer 2

Its all to do with finance, and how long the person who lives in the home wants before they have to vacate, they might not have found another place to live yet, so they may select a month or 6 weeks etc., so they can get another place or its between the bank and building company if its new, but they don't usually take too long, if the house is already vacant, then its between the real estate people and the banks, so much red tape, my brother in law waited about 2 months, all to do with surveyors, the bank finalising the loan (he got all his outstanding debt put together, credit card, car payments etc., all into one loan) thats why it takes time, hope this helps you and congrats on finding your home, goodluck! :)

Answer 3

the bank requires an in depth title search to insure that there are no inconsistencies in ownership, also the bank orders an appraisal, and the underwriters have to review the application.  

Answer 4

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