The difference between a cash closing and a loan closing.
When you go to purchase a property, you can either pay for it outright with cash or you can get a loan to buy the property.
If you’re doing a cash closing, there are some differences in the forms that you’re going to fill out and the timeline overall for how long it takes to get to closing.
Overall, our internal process is going to be similar because we’re going to still do a thorough title search on the property and then we’re going to prepare your settlement statement, which shows how much money is being exchanged and how much you need to bring to closing.
But timeframe wise, you’re closing looking about two to three weeks depending on where you’re located, whether you want to physically come to the closing.
Sometimes if it’s a cash closing, we can actually sign everything remotely if you live too far away to come although we always love meeting our clients. So we encourage you to come to the closing.
If you don’t have all of the money in cash to buy a property outright, you might need assistance in buying it through financing either the entire purchase price or part of the purchase price.
If it’s a loan closing, then your lender’s going to have a different timeline of requirements that they want you to provide different documents to them. They want you to have an appraisal done on your home to make sure that the value you’ve agreed with the seller is the same as what the value of the property actually is. And then they’re going to have a lot of different things for your credit requirements. So the loan closing, you might be looking at three to four weeks.
In conclusion, the main differences are going to be how long it takes to get to closing and the actual documents you sign at closing. Contact us if you need help in your North Carolina real estate transaction.