If you’re a homebuyer, you’ve likely wondered, “Why does closing day take so long?” After months of anticipation, you’re ready to get the keys and move in! But instead, the closing appointment drags on for hours.
As a real estate attorney in Chicago, I understand buyers’ frustration with lengthy closings. However, there are very good reasons why the closing process cannot always be condensed into a quick 30-minute signing session.
Why Closing Day Takes So Long?
Closing day takes long due to meticulous document review, staggered signings and waiting periods, official procedures by the title company, and time-consuming funds transfers. It’s vital to understand what you’re signing and ensure all payments are correctly transferred — no rush is worthwhile risking these aspects.
There are 5 major reasons why closing day takes so long (from 40 minutes to 2 hours)
1. Thorough Document Review is Essential
The closing day involves signing the towering stack of legal documents that make your home purchase binding. You should carefully review all documents before signing, which can take 1-2 hours.
Rushing through contracts can cause you to miss important issues and terms. Better take time to understand what you’re legally binding yourself to protect your interests.
2. Staggered Signings Add Time
Often buyers and sellers will sign closing documents at different times due to schedule conflicts. This prevents having everyone together at once to streamline the signing process and means waiting periods between signings.
3. Waiting Periods are Common
You may experience delays as additional document copies are printed or attorneys make changes between signings. You may also have to wait for the lender to approve the signed documents. Waiting periods of 15-30 minutes are common.
4. Title Company Procedures
The settlement agent has protocols they must follow when presenting documents for review and signature. This controlled process can draw out the timeline a bit.
5. Funds Transfers Take Hours
The lender and buyer’s funds need to fully transfer before the deal can close. Receiving and confirming wire transfers can take some time.
Closing day may seem tedious, but following proper protocols protects all parties. Your patience will pay off with the keys in hand!
Learn more about How long does it take to close on a house in Chicago, Illinois.
Let me know if any other first-timer questions come up.
