How Long After Appraisal to Close?

A home appraisal is an official assessment of a property’s value. During a real estate transaction, the appraisal occurs toward the end of the purchasing process, after the home has passed inspections. Buyers and sellers are eager to get the deal done, leaving many asking, “How long after appraisal to close?” 

While that answer can vary, deals usually make it to the closing table within a week or two after the appraisal. Here’s a closer look at this common question so you know what to expect. 

How long it typically takes to close after an appraisal

No two real estate transactions are the same. However, there are average turnaround times, as well as oddball factors that can impact your specific deal. The answer to the question, “How long after appraisal to close,” is based on these factors. 

Average timeline 

Typically, buyers close one to three weeks after the appraisal is completed. If everything is straightforward, meaning no repairs are required, and the home is worth at least what it’s being bought for, your deal can proceed on schedule. The mortgage company will finish up the underwriting process and get all of your documents finalized. 

Why timing can vary by lender and loan type

Not all loans move at the same pace. For example, VA loans are known for requiring additional documents and being incredibly stringent regarding the home. Conventional loans can move faster, but that depends on the lender’s workload. 

The timeline also depends on when the lender orders the appraisal and how long it takes an appraiser to accept the job. 

Factors that can speed up or delay closing

When considering how long after appraisal to close, you must account for several variables.

Issues discovered during appraisal

If the home appraises at or above the purchase price, that’s great news. But if the appraisal comes in low, you may need to:

• Renegotiate the purchase price
• Pay the difference in cash
• Request a reconsideration of value

Appraisers may also flag issues that require repair or further inspection. For example, homes with a well may have to undergo water quality testing. Typically, these issues are addressed during the inspection, but if they are missed and the underwriter picks up on them, they are legally obligated to address them in their report. 

Loan underwriting and document review

After the appraisal, underwriting will perform a final check of your financial profile. They may need:

• Updated pay stubs
• Bank statements
• Verification of employment 

Provide these documents as quickly as possible so you can avoid delays. 

Buyer or seller delays

Sometimes, the holdup has nothing to do with the lender. It can all be on your shoulders or the seller’s. Examples include a seller who fails to complete scheduled repairs on time or buyers who don’t submit required documents. 

Steps that happen between appraisal and closing

Several actions happen after your lender receives the appraisal report. 

Appraisal review by the lender

The lender will confirm that the value supports the loan amount. They will also do a final check for safety and condition issues, which may be listed in the appraisal report. This review usually takes a few days. 

Loan underwriting and approval

Next, underwriting will complete any documents, review your file, and sign off. If everything is good to go, you will be clear to close. Otherwise, you may receive a conditional approval, which indicates a few more documents are needed. 

Finalizing title and escrow

Lastly, the title company will perform its due diligence. You’ll need to submit money for escrow a few days before closing. 

How to stay on track for closing

Taking certain actions can get you to the closing table on time. 

Provide all requested documents promptly 

When the lender asks for documents, get them as quickly as you can. Otherwise, it can hold up underwriting and delay your transaction. 

Communicate regularly with your lender and agent

Talk to your real estate agent and lender to make sure you are doing your part. Regular communication is what makes deals smooth. 

Conclusion

Before you get anywhere near the appraisal process, you need a strong credit profile and a respectable score. Solutions like Kikoff make it easy to strengthen your profile with free rent payment reporting and other tools.

You can build credit responsibly with Kikoff’s plans.