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HOW LONG IS ESCROW???

HOW LONG IS ESCROW???

The most important factor in determining how long escrow will be is the type of financing the buyer will use to purchase the home.  Typically an all cash purchase is going to between 7 and 20 days. Conventional financing is typically between 20 and 30 days.  FHA financing usually 30 to 45 days and VA financing is usually 35 to 50 days.  Two other main factors are who your lender/loan officer is and the condition of the property.

Those are the general guidelines for how long it takes to close escrow.  During Escrow, the first half is filled with lots of real estate related documents that need to be reviewed and signed and then the home inspection and appraisal.  After all of that is done, the second half of escrow is mostly the lender getting the buyers file approved and passed through all the underwriting guidelines.  In this market, 9 times out of 10 when you have a delay in close of escrow it is due to the lender not preforming in a timely manner.  That's why it's crucial for a buyer to select an extremely qualified loan officer that will be able to follow through and preform on the timelines of the transaction.  With a bank owned property, needing extra time could cost the buyer a $100 fee per extra day.  In a short sale, going beyond the approved time could end up killing the deal if the sellers lender is not willing to extend the time period.  Those are two things you do not want to be faced with during a home purchase.  Bottom line: Make sure you are working with an extremely qualified lender that gets results fast.

clear skies,

Doug Reynolds

  • May 24 2011 - Sacramento
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Answers (6)

I couldn't agree more! Well put!
  • May 24 2011
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I just wanted to add a comment, that the length of an escrow also depends a lot on what the seller will agree to.  An example would be, last week I submitted an offer on behalf of my client to purchase a property.  I suggested she select a 45 day escrow.  I felt this would allow her enough time to do her due diligent...home inspection, loan approval, etc. within the first 15 days.  If everything is satisfactory, then she could notify her landlord that she would be moving in 30 days.  Well that's a great plan, but the Lender of the Bank Owned property agreed to a 30 day escrow.  That's why I say it also depends on the seller.  So I totally agreed with Doug, "Make sure you are working with an extremely qualified lender that gets results fast", because you may not get the number of days you need or want to close escrow.

Have a Great Day!

  • May 24 2011
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I recently had an all cash escrow delayed by 3 weeks due to past due utility bills which needed to be payed by a third party for the seller.  What a nightmare!
  • June 14 2011
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Charlene Garvey is a God sent agent from Coldwell Banker Beachside!!!
  • November 14 2014
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The escrow process is like doing the tango with Godzilla. Tread carefully, watch your toes, and stay on top of your game! There are so many factors that affect the length of escrow. Closing escrow on time requires awesome team work between lender, real estate agent, and parties to the transaction!

Thanks for this post!

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  • January 16
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I think all the realtors that contributed to the answer did a great job.  Although I am realtor now, I worked for many years as a transaction coordinator.  Every escrow is different with different time frames.  When I worked as a transaction coordinator, the shortest escrow we had was 2 weeks and the longest one was three months. 
  • February 13
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