How Long Is the Closing Period for a Home in Detroit, Michigan?

With Detroit's GDP growing by more than 28% in the last decade, according to the Federal Reserve Bank of St. Louis, now is a better time than ever to purchase a home in the Motor City. Even if it is a buyer's market, waiting on a house closing can be a stressful process. Between the negotiations and getting your things ready to move, your head can feel like it's spinning. Learn what to expect during your Detroit home buying process and how you can keep things as smooth as possible.

How Long Does it Take to Close on a House?

Closing on a home in Detroit can take anywhere from one week to 60 days, depending on many factors like the property type, whether you're buying with a mortgage or not, and the type of loan you're taking out. To understand the closing process, you should be familiar with these terms:

• Escrow: The time between when you and the seller sign the official paperwork on closing day.
• Closing day: The day you sign all your paperwork and are handed the keys to your new home.

Buying with cash can expedite the closing process because you don't have to worry about financing requirements. If you choose to buy with cash, you can close as soon as a week after the contract is executed. According to Zillow.com, only 23% of buyers purchase their homes with cash. Most buyers have to use conventional financing to purchase their homes. When using a mortgage to purchase your home in Detroit, you can expect to close in 30-45 days after both parties sign the contract.

What Can Cause a Closing to Delay?

During offer negotiations, you will likely agree upon a closing date with the seller. But, in some circumstances, your closing date could be pushed back from anywhere between a few days to a few weeks. Some common issues you should be aware of that can cause delays:

• Buyer financing
• Changes to your creditworthiness
• Low appraisal
• Seller has unresolved title issues
• No proof of homeowners insurance
• Home sale contingency: If your contract says you are unable to close until your old home sells
• Slow repair requests
• Unsatisfactory walk-through of the home

Speak with the Experts at Robertson Homes

The team at Robertson Homes has been building high-quality homes and first-rate communities in Metro Detroit for over 75 years. During that time, we have mastered making the home buying process as simple and convenient as possible. Contact us today for more info on our process.