What Is Closing Date?
Closing Date: The date in the contract when the sale is set to be completed and ownership transfers.
Also called: settlement date
The closing date, or settlement date, is when the purchase is scheduled to be completed: you sign the loan and transfer documents, the lender funds and the deed is recorded.
How much time to allow
- Cash purchase: as little as 1 to 2 weeks
- Conventional or FHA: typically 30 to 45 days
- VA or USDA: often 35 to 50 days
- Jumbo or complex files: 45 days or more
Picking a date
- Make sure your rate lock covers it
- Closing late in the month lowers the prepaid interest you bring to closing
- Avoid Fridays before holidays, when funding and recording can be delayed
If it slips
If the loan isn't ready, both parties must agree to an extension in writing. Without one, the contract may allow the other side to cancel.