New closing regulations require a 3-day clear to close period. During that time your real estate agent will work closely with your lender, buying agent, buying lender, and closing attorney to work out any last minute items to finalize closing terms.
The closing of your home will seem like it is floating in thin air so here are the things going on behind the scenes, getting your home clear to close. Whichever party is paying the closing cost of the loan will pick a title company to research the title of the property to make sure it is clear from any liens or legal action. The title company will also issue title insurance, confirming for the the buyer that you have the legal right to sell, and ensuring that the deed is properly recorded. This title search is performed by the title company’s legal team and will take several days. The loan will have to be properly applied for at this time.
Prior to contract, the buyer would have only had a preapproval. The preapproval is part of the loan authorization process. The buyer will submit all paperwork to their loan officer, and their loan officer will send it to underwriting. The underwriters will then look over the file to make sure it is complete. The underwriters are double and triple checking the accuracy of the loan. Often times the underwriter will send a file back out with conditions. Conditions are requests for documentation like pay stubs or pay offs etc. This is normal, and the more responsive the buyer is the quicker it can be resubmitted.
The buyer will also be working on a homeowner insurance quote while you and your real estate agent work on clearing on all inspection contingencies. After all are completed, a clear to close with a three day hold will be issued. The buyer will make a final walk through usually the day of the closing. You and the buyer will also schedule changes of utilities. All these things will take 30-45 days, typically, and finally, your real estate agent and yourself will sit down at the closing table, signing documents and completing the sale of your home.