At one time, 30 day closings on real estate were pretty much normal.
Do 30 day closings still exist?
On August 1, 2015, there were drastic changes made in the way most residential mortgages are closed. Because a new rule from the recently created Consumer Financial Protection Bureau took effect on that day. And, this ruling covered all mortgages applied for on or after that date. Mortgages applied for before 8/1/15 are not affected. The CFPB has designed two new disclosures that, hopefully, will be easier for consumers to understand. But the requirements that come along with these new disclosures will have significant effects on closings.
We are now advising all clients that they need to schedule closings to be at least 60 days out if there is a mortgage involved.
So – are the 30 day closings a thing of the past?
The answer is yes – and no.
If a mortgage is involved, it will take probably 60 days. However, if everybody in the transaction is on the same page, maybe 30 to 45 days can happen. If you’re purchasing a home with cash, 30 days is easily doable – our record is 12 days from signing the contract.