For real estate buyers, who need financing to purchase a home here in Chicago, one of the most common questions that come up is “How long after the appraisal can I expect to close and take ownership of the house?”
How Long After Appraisal to close?
After the completion of the home appraisal, it takes from 2 – 3 weeks, in general, until the actual closing day to close on a house. Since each real estate transaction has many variables, sometimes it can extend up to 45 days after appraisal.
Key factors impacting the closing time after appraisal
1. Importance of Appraisal in Financing Process
The appraisal is a critical step in the buyer’s loan process. This is when an independent appraiser will visit the property to assess its fair market value on behalf of the lender.
The appraised value determined must support the requested mortgage loan amount before the lender can issue final loan approval and proceed to the closing.
2. Appraisal Review and Underwriting
Once the appraisal report is submitted, the buyer’s lender needs 5-10 business days to thoroughly review the appraisal, assess the value determination, and resolve any concerns with the appraiser.
- For FHA and VA loans, further time may be required depending on the lender and loan program.
The appraised value must then be incorporated into the lender’s underwriting approval process before issuing a clear-to-close notice to the buyer. This underwriting and review process typically takes 1-2 weeks in a normal transaction.
3. Closing Disclosures and Document Preparation
After underwriting is complete and the loan is cleared to close, the lender issues the buyer’s final Closing Disclosure at least 3 days prior to the closing date.
Additionally, the title company overseeing the settlement requires 1-2 days to review the file and prepare the closing documents, including the deed, settlement statements, and other legal paperwork.
4. Scheduling Availability and Coordination
The timing of the actual closing day also depends on availability and coordination between the buyer, seller, real estate agents, attorneys, and lender.
With multiple parties involved, it takes some time to get everyone scheduled for the closing appointment. Coordinate of closing dates and times convenient for all parties involved should be done during the 2-3 weeks prior to closing so as not to delay closing more than necessary.
Strategies to Expedite closing time after appraisal
For buyers wanting to expedite the waiting period after appraisal,
- Consider making an all-cash offer to remove financing contingencies
- Or shop for lenders offering more streamlined appraisal reviews and rapid underwriting
- Discussing your preferred closing timeline with real estate agents upfront also helps coordination
But in most cases, the 2-3 week average timeline is standard here in Chicago following the appraisal.
In summary,
Buyers can reasonably expect 2-3 weeks between the appraiser visit and assessment of value until the date you can sit down at the closing table and take the keys.
This allows the lender proper due diligence on the home value while also preparing the legal documents and confirming schedules for closing.
Learn more about how long does it take to close on a house and how long does a home appraisal take in Illinois.
Let me know if you have any other questions!
