Closing on Your First Home: A Guide for Military Buyers

Buying your first home is a major milestone. But buying as a military family, particularly in the PCS cycle, adds a whole new level of logistics. Between deciphering VA loan rules, coordinating around report dates, and managing closing paperwork remotely, there are additional details to manage.

Closing day is the official finish line where the home becomes yours. Let’s break down how to get there.

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How Long Does It Take to Close on a House?

As a general rule of thumb, it typically takes about 30 to 45 days from the time your offer is accepted to get to the closing table. If you're using VA financing, the timeline is often similar or extended a bit, averaging 35 to 45 days.

Additional factors that affect your timeline:

VA appraisal requirements: The VA appraisal process will ensure the property meets Minimum Property Requirements (MPRs) for safety, sanitation, and structural integrity. If the appraiser flags an issue that requires repair, the issue must be resolved and re-inspected before closing.

PCS report dates: You may need to juggle availability in temporary lodging (TLF/TLE), your report dates, and closing schedule. Closings are typically scheduled on business days, excluding weekends and holidays.

TIP: Put the clock on your side by getting prequalified or preapproved for a mortgage before starting the home buying search. Prequalification helps you understand your borrowing capacity while preapproval usually involves a more detailed review of your finances and identifies the documents you’ll need to close the loan.

What Happens Between Your Offer and Closing Day?

Once the seller accepts your offer, you're officially "under contract" and enter the escrow, underwriting, and loan processing phases, which include:

Earnest money deposit: Within a few days of contract acceptance, you will typically deposit earnest money, which can be 1% to 2% of the home price, or a flat amount, such as $1,000, into an escrow account to demonstrate good faith that you intend to complete the purchase. The amount and deadline vary by market and purchase contract.

Loan application underwriting begins: Your credit, income, employment, and assets will be reviewed and verified.

Schedule and complete a buyer’s home inspection: Separate from a VA appraisal (which will review Minimum Property Requirements), a private home inspection provides an in-depth evaluation of the roof, HVAC, plumbing, and structure. If major issues pop up, you can negotiate repairs or credit with the seller if your contract includes an inspection contingency.

VA appraisal, title work, insurance set-up: Your lender will order a VA appraisal to confirm the home’s market value and verify MPR standards. Simultaneously, a title company performs a title search to identify any legal liens or ownership disputes against the property. You will also need to obtain homeowners insurance on the property.

Closing disclosure (CD) review: Federal law requires a lender-provided Closing Disclosure at least three business days before closing. This document breaks down every final fee, interest rate, monthly payment, and dollar required to complete the transaction. You will also confirm your closing date, which usually occurs at the physical location of the title company, but may be done remotely.

The final walkthrough: Usually, 24 to 48 hours before closing day, you or your real estate agent will walk the property to verify that all negotiated repairs were completed as agreed; appliances, fixtures, and window treatments included in the sale have remained; and the seller left the property in the same condition as contractually agreed upon.

Sign, close, and get keys: A closing date will be set, either in person or remotely, to sign the final paperwork and complete the transaction. Once closing requirements are met, funds are disbursed, and ownership is transferred, the deed will be recorded, and you will get the keys to your home.

Understanding Closing Costs and Cash to Close

Closing costs cover the fees and expenses associated with your mortgage and transfer of property ownership, typically 2% to 5% of the purchase price.

VA home loan closing costs may include: 

• VA funding fee: A onetime fee, ranging from 0.5% to 3.3% for VA loans. Most buyers roll it into the loan balance. Veterans with a 10% rated or greater service-connected disability and active-duty Purple Heart recipients are exempt.
• Loan origination fee: A lender fee capped at 1% for a VA Loan.
• VA appraisal fee: The cost of the required appraisal to assess the property's value and compliance with VA Minimum Property Requirements.
• Title search, title insurance, settlement, and recording fees: Charges for the title search, title insurance, settlement services, and recording the property transfer.

"Cash to close" is the net dollar amount you must provide to complete the home purchase on closing day, generally by wire or cashier’s check.

It equals your down payment (if contributing) + your portion of closing costs + prepaid escrow (such as homeowners insurance, property taxes, and daily mortgage interest) minus your earnest money deposit, lender credits, and seller concessions.

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What Happens at Closing?

1. Signing Key Documents

Unless otherwise arranged, such as in a remote signing, signing happens with a settlement agent at a title company, escrow office, or closing attorney's office, depending on the state.

Key documents include:

• The Closing Disclosure (CD): Confirming final loan numbers.
• The promissory note: Your legal obligation and agreement to repay the mortgage loan.
• The deed of trust/mortgage: Secures the lender's lien against the physical property.
  
  

2. Transferring Funds

You'll remit your final cash-to-close amount via wire transfer or an official cashier’s check made out to the title company. Cash or personal checks are generally not accepted.

3. Deed Recording and Getting Keys

Once your lender reviews signed paperwork and releases funding, the title company will record the deed at the county courthouse.

When do you get the keys? If your closing appointment is in the morning, all funds clear, and the deed is recorded, it is possible to receive keys later that afternoon. You may have to wait until the next business day if you close later in the afternoon, on a Friday, or if there is a delay in lender funding transfers.

TIP: If you have signed remotely, there will be a delay of a few business days as the deed cannot be recorded until the title company receives and verifies your closing documents. Keys can either be mailed to you or retained at the title company for you to pick up in person.

Closing During a PCS

Closing on a home purchase remotely while navigating a PCS is entirely possible, but you'll need to approach it with a bit of strategy.

Remote Closings and Power of Attorney (POA)

If one or both spouses cannot physically attend closing, you have three primary options.

• Specific Power of Attorney (POA): You can have a Specific (or Special) POA drafted through your installation’s legal assistance office (JAG) granting a spouse or another trusted person the authority to sign real estate and mortgage documents on your behalf. Double-check with your lender, as many lenders and title companies must pre-approve the exact language of the POA prior to closing day. General POAs are frequently rejected by mortgage underwriters.
• Remote online notarization: Depending on state law and lender requirements, you may be able to sign and notarize documents electronically using identity verification and a live video connection.
• Mobile notary: Some lenders will allow a mobile notary to meet you at a place of your choosing, such as home or work. The closing packet is typically sent (and then returned) via an approved delivery method such as overnight mail. 
  
  

Coordinating PCS Report Dates and Lodging

When setting your closing target, work backward from your Report No Later Than Date (RNLTD) and temporary housing allowances (Temporary Lodging Expense, TLE, or Temporary Lodging Allowance, TLA). Build in a five- to seven-day buffer between your estimated closing date and your mandatory report date to handle potential underwriting or repair delays without incurring excessive out-of-pocket lodging expenses.

Adding Military Contingency Riders

Consider working with a military-relocation specialist, such as a certified Military Relocation Professional (MRP), to include military-specific protective riders or contingencies in your contract. A military clause or contingency allows you to exit the contract gracefully with your earnest money intact if your military orders unexpectedly change, drop, or get canceled during escrow. 

This differs from the VA escape clause, which provides protections when the property's appraised value is below the contract price.

FAQs

What happens at closing for a military first-time homebuyer?

At closing, you'll review and sign the final mortgage and ownership documents, provide any required cash to close, and complete the transfer of the property. Military home buyers follow the same basic closing process as other buyers, but those using VA financing must also meet applicable VA loan requirements. If you're buying a home from another state or during a PCS, you may be able to close remotely or use an approved power of attorney.

How long does closing take on a VA loan?

On average, closing on a home using a VA loan takes 35 to 45 days from offer acceptance to deed recording, although timelines can vary.

VA loans are completely free of closing costs, right?

Some first-time buyers assume that VA loans are entirely "cost-free", but that's incorrect as borrowers are still responsible for their portion of closing costs. While the VA limits some expenses and removes the funding fee for veterans with a 10% or higher service-related disability, it doesn't cover all costs for the borrower. If the funding fee is not waived, the buyer is responsible for paying it or rolling it into the balance of the loan.

Some lenders may offer credits, or points, to offset some of the borrower’s closing costs, especially when the borrower prefers to reduce upfront expenses. However, this trade-off typically comes with a higher interest rate, which can reduce upfront expenses, but raises the long-term cost of the loan and monthly mortgage payment.

When do I get the keys after closing?

You receive keys as soon as all papers are signed, the lender wires funds to escrow, and the county clerk officially records the deed, which may occur same-day, if closing was in the morning, or up to 24 to 48 hours after signing.

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Can military home buyers close on a house from another state?

Absolutely! Remote home purchases happen often in the military community. You can use a mobile notary or Remote Online Notarization.

What can delay a real estate closing?

• A property issue flagged during the VA appraisal that requires repairs or additional verification to meet Minimum Property Requirements (MPRs).
• Changes to the buyer’s financial situation (i.e., opening new credit lines or making large unverified cash deposits).
• Title defects, such as unrecorded liens or boundary disputes.
• Delays in receiving home insurance policies, final lender reviews, or a delayed Certificate of Eligibility for the VA loan.
  

Yes. The VA strictly regulates what fees veterans can be charged. Lenders cannot charge unallowable fees, such as attorney fees or lender processing fees beyond a capped 1% origination fee structure. Additionally, while conventional loans require Private Mortgage Insurance (PMI) for down payments under 20%, VA loans replace PMI with the onetime VA Funding Fee.

From Accepted Offer to Closing Day

Whether you're preparing to buy your first home or closing remotely because of a PCS, MilitaryByOwner has real estate experts and resources to help you navigate everything from market research to making your first offer and getting to the closing table, with information and support for every step of the way!