Closing on a house can take a long time, especially if you need a mortgage. If you decide to pay cash for a home, however, that timeline can change dramatically. In fact, many homebuyers are pleasantly surprised to learn that closing on a house in cash can happen in just two weeks.
The speed of a cash deal can depend on several factors, including how quickly you can arrange your financing and the efficiency of your real estate agent. Here are some of the things you can do to get your home purchase closed in the fastest possible time:
Ensure You Have Your Earnest Money Ready
The first step towards closing on a house is to make sure you have your earnest money ready. That means either arranging a wire transfer or writing a check, and the process can take anywhere from a few hours to a day before it clears into the escrow company’s account.
Once you have your money ready, it’s time to sign your purchase agreement with the seller. This is where you’ll officially enter into contract, so it’s important to have a real estate agent with you for this step. Also read https://www.dbchomebuyers.com/sell-my-house-cash-silverspring-md/
Aside from signing the purchase agreement, you’ll need to have an appraisal conducted for the home. This will help determine how much the home is worth in your price range, so you can know what you can offer to the seller.
If your lender doesn’t have a valuation on hand, you may need to hire one, and this can add some time to the closing process. It’s also not uncommon for the lender to request documentation about your income and assets, which can stretch out the timeline a bit further.
It’s also a good idea to have the property inspected before you close on the house, particularly if it’s a cash sale. It can identify any serious hidden issues that could be a detriment to your home’s value.
The inspection process can add another week or so to the closing timeline, but if you’re organized and anticipate all of the necessary steps, it shouldn’t take longer than a week to schedule a thorough home inspection.
After the inspection, you should then work with your attorney to draw up the final documents required for the closing. This can also take a little longer than if you were getting a mortgage, because it requires more paperwork and more coordination between your legal team.
In addition to the title search, you’ll also need to work with an escrow company to make sure all the paperwork and documents are in order for closing. This can also take a few extra days, since the escrow company will need to collect your funds, pay off any outstanding debts on the property, and distribute them to you.
In a perfect world, you’ll be able to close on your new house in as little as two weeks when you buy it in cash. However, the length of the entire process can vary based on what comes up, and you should always have a plan for how to move forward if something unexpected arises during the closing process.