Renter to Owner FAQs
Q. How long does it take to close the transaction and become the new owner?
A. It depends!
It normally takes around 30 to 50 days to close on a home. The moment the seller accepts your offer, the home is almost yours! It does take some time to get the keys in your hand.
The closing period is agreed upon once you go under contract, but it can be delayed and the period extended due to unforeseen circumstances, like a failed inspection, appraisal issues or a problem with the title. Getting those inspections done as soon as possible may be advantageous!
Important to note, in Arizona you have to wait until the deed is recorded by the County Clerk, often the next work day after closing, before you can be handed the keys to your new home. That would be important to both you and the movers delivering your furniture! Closing on a Tuesday or Wednesday might be advantageous!
Q. Could renters get stuck paying for rent and a mortgage in the same month?
A. Mortgage payments are collected in arrears. That makes everything much easier on a renter.
You pay rent for your apartment on the first of the month for the month ahead — or simply, the rent you pay to live there for the month of July is due in advance, on July 1st.
Mortgage payments are collected in arrears, though, meaning that the mortgage payment you owe for July will be collected on August 1st. In fact, your very first mortgage payment won’t be due until a full month after the last day of the month in which you close.
For example, a mid-July closing means the first payment will be due September 1st: you pay your first full month’s mortgage (for August) on September 1st.
Note: You’ll pay the mortgage interest due for the latter part of July (from closing through the end of the month) at the closing table. That amount will be wrapped into your closing costs and be due at the close of escrow. Your lender will estimate those costs for you once you’re under contract. Closing near the end of the month might be financially advantageous!
Credit: Much of this information is paraphrased from content published in an article by Jun 28, 2017 Time it Right: Here’s What the Transition from Renting to Owning a Home Looks Like (and Costs)