How Long After Home Appraisal is Closing?
When purchasing a home, the appraisal process is a critical step that ensures the property’s value aligns with the purchase price. Once the appraisal is completed, the closing process follows. But how long after the home appraisal is closing typically expected? This article delves into the timeline and factors that can influence the duration between the appraisal and the closing date.
The Appraisal Process
Before understanding the timeline after the appraisal, it’s essential to grasp the appraisal process itself. An appraisal is an unbiased assessment of a property’s market value, conducted by a licensed appraiser. The lender requires an appraisal to ensure that the loan amount is not more than the property’s value. The appraiser examines the property’s condition, compares it to similar homes in the area, and considers other factors like location and market trends to determine its value.
Timeline After Appraisal
The typical timeline after the home appraisal is closing can vary depending on several factors. Generally, here’s what you can expect:
1. Receiving the Appraisal Report: After the appraiser completes the inspection, it usually takes a few days to a week to receive the appraisal report. The lender will review the report to ensure it meets their standards.
2. Contingency Period: During this period, typically 10-14 days, the buyer has the opportunity to cancel the contract if the appraisal is not satisfactory. This is usually covered by the home inspection contingency.
3. Appraisal Contingency Removal: Once the buyer is satisfied with the appraisal, the contingency is removed, and the process moves forward towards closing.
4. Closing Date Negotiation: The buyer and seller may negotiate the closing date based on the appraisal and other factors. The typical time from the appraisal to closing is around 30-45 days.
5. Financing and Underwriting: If the appraisal is favorable, the lender will proceed with the financing process. This may take an additional 10-30 days, depending on the lender’s policies and the complexity of the loan.
6. Final Walkthrough: Before closing, the buyer conducts a final walkthrough to ensure the property is in the same condition as when the contract was signed.
7. Closing Date: Finally, the closing date is scheduled, and the transaction is completed.
Factors Influencing the Timeline
Several factors can influence the timeline after the home appraisal is closing:
1. Lender’s Efficiency: Some lenders are faster in processing loans than others, which can affect the closing timeline.
2. Appraiser’s Availability: If appraisers are in high demand, it may take longer to get an appraisal completed.
3. Market Conditions: In a seller’s market, appraisal delays may occur due to the high number of appraisals being conducted.
4. Contingencies: If the buyer or seller needs to address issues uncovered during the appraisal process, it may delay the closing.
Conclusion
Understanding the timeline after the home appraisal is closing can help buyers and sellers prepare for the process. While the typical timeline is around 30-45 days, it’s important to be aware of the factors that can influence this duration. By staying informed and working closely with your real estate agent and lender, you can navigate the home buying process more smoothly.
