For buyers in the process of purchasing a home here in Chicago, one of the most pressing questions is “How long after we complete the property inspection can we expect to close?”
The home inspection is a key contingency in the buyer’s due diligence period, so what is the typical timeframe between home inspection and closing day?
How Long It Takes To Close On A House After Inspection?
In Illinois, the time from finishing a home inspection to closing usually ranges from 3-5 weeks. The length depends on factors such as negotiation of repairs, time for completing agreed repairs, lender review of hefty fixes, timing of appraisal, title verification process, loan processing period, and scheduling the closing date.
Factors surrounding the inspection process impacting the closing time
1. Negotiating Repairs
After reviewing the inspection report, the buyer will want to submit any requests for repairs or credits to the seller within 5-10 days in most cases.
It then takes additional time to negotiate these requests and come to an agreement on which items the seller will handle.
Even in smooth transactions, this back-and-forth can add a week or more.
2. Completing Repairs
For any repairs the seller agrees to address, time is needed for scheduling contractors, obtaining permits, ordering parts, and completing the actual work.
Extensive repairs can take several weeks, while more minor ones may be done within 5-10 days. Weather delays or contractor availability can also impact timetables here.
3. Lender Review of Repairs
If repairs are very costly, the buyer’s lender may require a re-inspection after work is completed to confirm quality and value impact. This would add another 5-10 days before final approval.
Most minor repairs don’t need to be re-reviewed, but buyers should be aware of this possibility.
4. Appraisal Timing
Another 1-2 weeks from the inspection should be allotted to complete the appraisal.
Lenders require the appraisal to assess fair market value after repairs. Appraisers also may be booked out here in Chicago, which can cause scheduling delays.
5. Title Work
The title company may invest several days researching the property’s title history, tracking down any liens or judgments, and clearing the title before being “insured” for closing. This process runs concurrently with inspections.
6. Loan Processing
Allow 3-4 weeks for loan underwriting, receiving a clear to close, and lender closing disclosure preparation. Any title or appraisal issues can delay underwriting final approval.
7. Scheduling Closing Date
Once all approvals are issued, real estate agents still need 3-5 days to coordinate and schedule closing for all parties involved – buyer, seller, attorneys, agents, etc.
In summary,
The complete timeline from home inspection to closing day falls in the 3-5 week range here in Chicago.
The inspection itself sets all subsequent steps in motion, from repairs to appraisal, underwriting, and document preparation. This is a busy period! Build in some buffer room when planning your move.
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Let me know if you need any guidance or have additional questions about these inspection and closing timeframes. I’m happy to provide details on what to expect during this crucial phase!
