What is the quickest you can make a closing?

Question

Realistically, how fast can a closing be? I know it usually needs to go through inspection, appraisal, and loan approval.

What are the realistically fastest time frames for getting this done as fast as possible?

Tarik Turner · Answer

We do use a program that has a 7 to 10 day closing period with no appraisal only a BPO evaluation at 75% LTV ..

Thats about the quickest that ive seen

Vinay H. · Answer

You have to deal with several external entities

a) Title search company

b) Lender ordered appraisal

c) Home inspector

d) Closing attorney

In theory, everybody could do their job in 2 days but in practice it does not happen. Appraisal is ordered - takes a week. Your financials are processed. Home inspection and any findings need to be discussed and negotiated. Closing attorney needs to get HUD from bank, verify numbers, get/prorate any tax/utility bills, get final payoff numbers etc etc

So anything under 2 weeks is aggressive. Of course, you could just have a cash offer and render most of this moot but with a mortgage you will have to go through the circus ...

David Wright · Answer

@Patrick Philip

That depends on a few but very important factors.  What type of transaction is it....fix and flip, buy and hold, is it a permanent loan, a bridge loan, rehab, ground up construction, etc....

It could be 7 days to 6 months or longer, it all depends.  But the fastest why to close ANY loan is to give the lender the documents they ask for immediately, no excuses.

When an investor asks me (which is everyday) how quick can you close?  I ask them how quick can you give me what I ask for and need?

I hope this helps.  Much success.

Jay Strickler · Answer

Sorry, wrong link:

https://www.biggerpockets.com/renewsblog/15-year-mortgages-for-new-intermediate-investors/

Jay Strickler · Answer

Lots of factors but I can usually close within 7 days in my home market using relationships I have in place.  This includes my banker, real estate agent, lawyer and insurance agent.  I recently wrote a blog post related to this

https://www.biggerpockets.com/renewsblog/do-the-ri...

and have another one coming about my One Email Wonder process.

Even if you have cash the attorney work might linger depending on their workload.  Late in the month would be a challenge.  I don;t typically have appraisal issues as banks I use do in house evaluations or a cross-pledge other properties and keep under a specific LTV.

Think through why it is important to you that you close fast.  For me the key is evaluating and locking up a contract in short order is the key to getting good deals.  Actually closing can then be a 30-60 day process that a typical buyer will expect.

Jerry W. · Answer

@Patrick Philip, in part it depends on what you have in place.  My fastest closing from looking at it to closing was 3 days I believe.  I looked at it then he told me it was going to be foreclosed on in 3 days and I didn't want to go through the hassle of redemption and more legal fees.  I got title insurance in 2 days and used a line of credit where I had the bank do a certified check to the title company.  The title company was really the hero.  The bank doing the foreclosure did some bad stuff right before closing and the title person actually lined them out pretty well and got it closed.  They are the only local title company I use now.  I really wasn't sure it would close until The title person headed out the door to the courthouse to file the deed.

Chris Mason · Answer

You really can't avoid that risk. Even if you, both agents, and the lender, and the lawyer, and the escrow officer all do their jobs right, that doesn't stop Mr. Fancy Wheels from buying the BWM with their down payment money the week Mr. FW goes into escrow.

Patrick Philip · Answer

In other words, they don't care anything about the blood, sweat, and MONEY that I put into the investment. But I already knew that.

Mark H. · Answer

The other thing I've found in my experience is that owner occupied buyers (especially first time buyers) will run out every single last day of the standard 60 day closing and aren't going to close before then even if everybody is ready just because they don't have to.  Sometimes it's related to their current living arrangements and wanting to minimize double payments.  Just wanting to put off the start of mortgage payments and other bills.

Patrick Philip · Answer

In my case, I'm the seller. I'm trying to avoid having to take my house off the market just to have the deal fall through.

What is the quickest you can make a closing?

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