Why Can’t Closings Happen Quicker Than 40 Days?


Mortgage lenders want to squeeze as many loans as they can into any given year. When you think about that as being their goal, it’s hard to imagine why a closing can take more than 40 days, on average, to reach. The truth is many different delays can occur from the time a contract is signed to the time the final papers are signed at closing

Average Time To Close On A Transaction In Recent Years

The average time to close on a real estate transaction over the past seven years has been around 45 days, and it has increased in each of the past three years. The pandemic has created some delays that lenders and title companies are still trying to catch up from, but with the title technology available, you can ensure your company isn’t a part of the delays. 

Who Is Responsible For Closing Delays?

There are many different reasons why closing delays occur. Some of them include:

  • Lenders not getting closing packages to the title agent in sufficient time
  • Notaries not following instructions, resulting in documents needing to be re-signed
  • Missing the cutoff for FedEx pickups
  • Real estate agents not delivering final settlement statements timely
  • Title companies not providing the correct closing amount

As you can see, the responsibility for any delays in the process can be shared by a combination of people ranging from the homebuyer to the title company and anyone in between.

How To Make Your Title Company Stay On Top Of Closing Day

The right title tech tools can ensure you’re ready for closing day even if other parties delay the process. With Alanna, you can provide quick and accurate costs, be proactive with the documents you send to the appropriate parties so you can receive them in sufficient time, and much more. There are so many moving parts from the time a contract is signed until the time the final papers are signed, so the more proactive your title company can be, the easier the final days of the process will be.

Alanna.ai develops flexible software for the title industry. Learn more about how we can help you.