How long does it take, exactly? When you receive a signed sales contract, how long does it take to close the deal? Well, if you pay cash, it can close as quickly as you’d like. You’ll need a property inspection and you’ll need to review the title report but other than that, cash is king and why sellers likehow long does it take to close cash. No contingencies and no worries about the buyers getting their loan approved. But if you’re financing your first real estate investment, your loan can legally close in as few as 10 days but most close within 30.

Much of the approval time initially falls on you. When submitting a loan, your loan officer will also ask for a list of documentation to be provided such as your pay check stubs and W2 forms. Once the sales contract is signed by both parties, the clock begins to tick and if you drag around getting your information to the lender you’re wasting potentially precious time.

The lender will order various services and reports from third parties such as title insurance, survey and an appraisal among a host of other items. This gathering usually takes no more than one to two weeks. That means if your loan application is complete as well as fully documented, your loan package should arrive at the underwriter’s desk in about two weeks. If your closing is scheduled 30 days from the date the contract was signed, you’re almost halfway through.

The underwriter will approve your loan within one to three days, sometimes longer due to a heavy workload. Sometimes the underwriter has a question about the loan or something else is needed in order to close the loan. If asked for more information, get it to the lender as soon as able. The loan goes back into queue and another couple of days go by. Once the loan is approved, it is sent to the loan document department to draw closing papers. This can take another two days. In this example, so far we’re at two weeks and six days with 10 days remaining until closing.

The loan papers are delivered electronically, the settlement costs reviewed and the closing is held. Once the loan documents have been signed, they are returned to the lender the same day who will then release the mortgage funds after determining the settlement took place in accordance with lender guidelines. Most loans close within 30 day giving all parties time to provide what they need to provide. Shorter or longer times can occur due to loan volume, but under normal circumstances, a 30 day close is a no-brainer.