What to expect during closing on a house

When preparing for a home loan closing, things can seem a bit overwhelming. However, when you know what to expect, the process won’t seem so daunting.

Preparation on your part and by the agents you work with should make mortgage loan closing just what you imagined: a joyous occasion with as few hiccups as possible.

Closing processes vary depending on the type of transaction, as well as local and state laws. The differences can be subtle, but it’s always good to know which steps to take when preparing to close.

If you are ready to take a step nearer to closing on loan on your dream home or a refinance on your current home, apply now!

Prepare to sign a lot of documents whether you are purchasing or refinancing.

• Purchase: An attorney or closing agent will explain each document and show you know where to sign, though the process does vary some by state. You may need to wait for the lender’s wire transfer to clear. This is your actual loan. Then you’ll be handed the keys, congratulated and sent off to your new home with copies of the documents.

• Refinance: You’ll meet with an agent from a title company who will explain each document you sign in accordance with local laws. If you are refinancing your primary residence, your loan will fund once the three-day right of rescission has expired, after which you can no longer cancel the loan. Your loan will fund on the same day if you are refinancing an investment property or second home.

The amount of time it takes to close on a home purchase can vary depending on a variety of factors. Generally, though, you can expect the process to take 30 to 45 days.

Knowing what to expect can help ease your fears that it is taking too long. A key first step is getting a mortgage pre-approval, which will tell you exactly how much you could borrow and help you narrow your search to homes you can afford.

Closing on a loan involves a number of steps, but the process doesn’t have to be difficult or complicated. Here are some steps to follow to get you through the process smoothly and into your dream home.

One of the biggest mistakes homebuyers make is waiting too long to get pre-approved. You might be eager to start touring homes, but without pre-approval, you could run into problems later.

Think of pre-approval as getting a head start. It helps you avoid surprises, like finding out you qualify for less of an amount than you expected, or hitting snags that could slow things down when you're under contract. The earlier you do this, the smoother the process will be.

Every day counts when you're closing on a house. If your lender asks for something, like updated pay stubs, proof of funds or explanations for large deposits, don’t put it off.

Even a short delay in sending documents could slow down underwriting, push back your closing date or even cause your loan approval to expire.

A good rule of thumb? Check your email often and keep all your financial documents organized. Waiting too long can turn a 30-day closing into a 45-day one, and no one wants that when it can be avoided.

Once you're under contract, treat your finances like they’re frozen in time. Taking on new debt, quitting your job or making big purchases (like buying furniture or a new car) can create red flags for your lender.

Any big financial change, even if you already qualified for a loan, could require additional approval and add considerable time to your closing timeline.

It’s best to wait until after closing to do things like open new credit lines or move large sums of money. Your lender will run a final credit check just before closing, so any sudden changes could cause complications. Play it safe, wait until the keys are in your hand.

A home appraisal might seem like a formality, but it’s a make-or-break moment in the closing process. If the appraisal comes in lower than expected, your lender won’t approve the loan amount unless the price is adjusted or you cover the difference.

Appraisers are often booked well in advance, so the sooner you schedule appraisal, the better. A delayed appraisal could push back underwriting, approval and closing day.

If you’re in a competitive market, getting this step done quickly can help keep everything on track.

You’d be surprised how many closings get delayed over small but costly mistakes. A misspelling in a name, incorrect loan amount or a missing signature can cause last-minute scrambling and delays.

A few days before closing, you’ll receive your Closing Disclosure, which outlines your final loan terms, interest rate and total costs. Read it carefully. If something doesn’t match what you expected, speak up immediately.

Reviewing your documents, double-checking funds and doing a final walk-through can help avoid last-minute surprises.

The sooner you get everything in order, the smoother the process will be. And if you’re looking to speed things up, Rate’s Same Day Mortgage* could help you get ahead of the game. With a faster approval process, you’ll be one step closer to closing on your dream home without the long wait.

_{Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.}

_{*Rate’s Same Day Mortgage promotion offers qualified customers who provide certain required financial information/documentation to Rate within 24 hours of locking a rate on a mortgage loan the opportunity to receive a loan approval within 1 business day of timely submission of documentation and does not suggest that the borrower will receive funding on the same day as their application submission. For purposes of this offer, documents provided after 1 pm local time or on a weekend or company holiday will be deemed submitted the next business day. Rate cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. Rate reserves the right to revoke this approval at any time if there is a change in your financial condition or credit history which would impair your ability to repay this obligation. Read and understand your Loan Commitment before waiving any mortgage contingencies. Borrower documentation and Intent to Proceed must be signed within 24 business hours of receipt. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Not all borrowers will be approved. Borrower's interest rate will depend upon the specific characteristics of borrower's loan transaction, credit profile and other criteria. Not available in all states. Restrictions apply. Visit rate.com/same-day-mortgage for terms and conditions.}