How long will I wait between sales contract and settlement?

During this time your agent will probably be busier than ever. Your agent will facilitate the process all the way through settlement or closing by keeping in touch with all parties, ironing out problems, expediting the loan process, arranging inspections, running papers across town, coordinating appointment dates. You can help speed up the process by signing the contract promptly and making any repairs required as soon as possible. Your sales contract can specify how long you're willing to wait, but it must be realistically based on the time lenders are taking in your area to process loans.

Depending on the type of financing your buyer is applying for, a typical waiting period can be any time between 30 and 90 days, but sometimes more or less. Some lenders can even give same-day approval with electronic mortgage underwriting, which relies on credit-scoring statistical models. The difference in waiting time largely depends on whether it is conventional, government-backed FHA/VA or owner-financed. But the biggest factor is the borrower's preparation. Clean credit and a complete application are the best ways to get a loan approved quickly.

Conventional. Typically this financing is obtained in the shortest time, depending on appraisal caseload, amount of time needed for credit check and other lender requirements.

FHA/VA. Appraisals, credit check, verifications of employment and deposits are always done first. After the property meets specifications and all documents are received by the private lender, then the loan is usually sent to FHA or DVA for approval. Some lenders have "direct endorsement" and "VA-automatic" where applications do not need to be sent to FHA or DVA. If approved, survey and termite check are ordered. Total time may be up to 90 days in peak periods.

After the mortgage loan has been approved, your agent will help arrange with you and your buyer a date, time, and place for settlement or closing. During this loan approval period you will begin making preparations to move, and final plans once a settlement or closing date is set.