After finding a house to buy and having your offer accepted, the home buying process really kicks into gear. There are several steps that have to be cleared before a pending sale is completed and your loan has closed. For example, this is the time when the home will be inspected and appraised. It is also the period during which the financial side of the transaction will be finalized.
This takes time, as anyone who’s been through the process before knows. But what about first-time home buyers? How long should they expect between making an offer and getting their keys? According to Ellie Mae’s Millennial Tracker, the average time it took millennial borrowers to close conventional purchase loans in February was 44 days, which was slightly higher than the previous month.
Joe Tyrrell, Executive Vice President of Strategy and Technology for Ellie Mae, says time to close is increasing as the share of home purchase loans grows. The percentage of purchase loans is on the rise with millennials continuing to enter the home buying market for their first or maybe even second purchase, Tyrrell said. The increase in days-to-close we saw in February is relative to the percentage increase in purchases versus refinances, as purchases typically take longer to close.