My agent chose an 18 day closing period. Is this normal?

Question

The offer was accepted late Monday evening (October 3rd, 2022). The closing date chosen is October 21st. My agent chose this date. There are 18 days between these 2 dates.

Since this is my first time purchasing a home, I didn't put too much thought into it. Today I decided to consider other lenders to see if I get a better rate. The Bank of America mortgage banker, who I spoke with on the phone and who was working on giving me a loan offer, was baffled by the 18-day period. The banker mentioned this period is usually 30 days. During this call, I learned a bit about the steps that take place during these 30 days (closing period). One step I recall right now is the lender appraisal. The banker recommended that I talk to my agent to get that change, otherwise, I could lose the escrow and option fee money on the closing date since the bank will not have enough time to get everything done by this date.

Is there any reason perhaps that my lender chose this date as the closing date? What is the reason behind such a short closing period?

Eliott Elias · Answer

It's not up to your realtor when you close, if you're going to use a lender that's not hard money theres no way you can close in 18 days. Appraisal alone will take 2 weeks

Lydia S. · Answer

It’s possible that your Realtor discussed the closing date with your current Lender and came up with the closing date- and if you received a full pre-approval, the timeline can be faster than if you were only pre-qualified.  If the closing date approaches and the Lender needs more time, an extension is all that’s needed.

Billy Daniel · Answer

Yeah, that's a bit odd with anything other than a cash offer.  Your agent should be asking you when you want to close when you're writing the offer.  I doubt you will be able to get a lender's clear to close in 18 days.  Could there have been a misunderstanding where the agent thinks you are paying cash?

Malkia Ra · Answer

(1.) Your realtor should have discussed timelines with you before you executed the contract.  30 days is the standard for financed purchases.  I've only been aware of shorter closing timelines for cash-only transactions or if the market had super DUPER low inventory, and you wanted to get the deal closed as soon as possible before the seller could consider any other offers.

(2.) You're still shopping lenders after the contract has been executed?  That too is strange.  Finalizing your financing takes time on the lender's end.  You're on a slippery slope if you're still entertaining other lenders and you're attempting to close in 30 days, much less 18!

Dave Skow · Answer

@Moises Guerra Garcia  1) 18 days is tight  2) there is a chance your lender  will receive an " appraisal waiver"  and if so - this will  save a ton of time  and  also save you money 3) once you  got into contract you shouldve  deceided to move  forward  with a lender ..either the one you were pre aprpoved with or a new lender  so that you can give them ample time to process the file  ...4) the real estate agent figured  you were  proceeding with the lender  you were pre approved with and in this case  18 days  should be OK as long as  you  get  the info to the lender to proceed with asap

Jay Hinrichs · Answer

30 days used to be the norm.. but lenders got super backed up and appraisers as well so that has been pushed to 45 days last few years.

18 days makes no sense for the average buyer who is still shopping for a loan.  careful you dont risk your EM  I suspect you still have inspection contingency while in the contingency period I would have the agent write an addendum extending the close date to a realistic time line.

Michael Brattelli · Answer

@Moises Guerra Garcia this quickest I’ve ever seen a loan close was 21 days and it was not easy. Everyone had to do everything perfect in that timeframe. Like others said your agent should not be closing the closing date and terms, that is up to you. Give them a call and discuss this. Very small chance you can close a loan in 18 days and you’d need more than miracle if you haven’t even picked a lender yet.

Steve Vaughan · Answer

It was most likely meant to be Nov 21st.

No matter what, check all paperwork before you sign it.

Agents, attorney's,  title have a lot to do.   Check names, dates, parcel #s, etc always.  The buck stops with you.

Derek Smith · Answer

All variables on the offers should be gone over together prior to submitting it. If you had been working with the agent on several deals, they may start to catch your patterns and preferences, but on the first deal?! Very odd.

My agent chose an 18 day closing period. Is this normal?

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