Recently I was asked by the SF Chronicle,

“How long does a typical escrow period last? What can cause it to last longer or be faster?”…..

Here’s my response:

Our typical escrow period in the San Francisco Bay area for a mortgage funded purchase is between 24 and 30 days.  That being said, there are as many variables as there are documents in a transaction and individually all or one can prolong an escrow. Whether or not the buyer  is pre-approved vs underwritten can determine how long the final review of the file will take before loan documents are sent to Title.  The primary difference between the two distinctions is that only through underwriting are all financial documents reviewed by the lender, ie: tax returns, filing matters, credit worthiness, etc.  A pre-approval is a precursory review of your credit score and is in no way an in-depth assessment. In fact after a through analysis lenders can actually disallow what they had previously pre-approved a buyer for. Very rarely do they come back approving you for a higher purchase level. More often than not the amount of the mortgage you qualify for is lower. This can be very disconcerting for a buyer and troublesome for an escrow’s closing. Lenders have different regulations either internally predetermined or federally written that can effect the time period of an escrow.  If the buyer’s lender is handicapped with rigid federal restrictions, last minute demands can literally halt the forward progression of a purchase.  Complicating not only the immediate escrow but possibly other escrows that hinge on the sale.

In addition some lenders require, as a condition for closing, that repairs on the property be completed.  Another example of an extended escrow could be missing signatures on pertinent documents. Thorough review of all signatures and initials required on contractual paperwork is occasionally only scrutinized during the final stages of underwriting.  Although simplistic in theory this can be monumentally important to the successful close of an escrow.  Having an experienced agent aware of all aspects of a transaction is of paramount importance when buyer or selling your home. Agents deal with real estate transactions on a daily basis.  Most home owners buy and sell property every 5 – 7 years and cannot possibly be up to date on all the requirements and disclosures we as agents are required to provide in today’s home sales.

The fastest close is cash with no contingencies. My fastest close was 3 days!