How Long It Takes To Buy A House?
Let’s take a closer look at the steps to buying a house. There is plenty you can do to prepare yourself for house hunting to shorten the time it takes to own your next home.
Step 1: Organize Your Finances - Get A Mortgage Preapproval (About 1-2 Weeks)
You’ll need a preapproval before you start shopping for a home. Your lender verifies your income and checks your credit history and current debt to determine how much home you can afford when you apply for a preapproval.
Find your credit score and review your credit report.
Save for your down payment and closing costs.
Avoid new debt, which will raise your debt-to-income ratio.
Organize your paperwork. You’ll need your W-2s, tax returns, bank statements and pay stubs to get preapproved.
Step 2: Shop For A Home (About 3 Weeks to 3 Months)
The longest part of the buying process is often the hunt for the right home. Expect to spend around 3 months finding the perfect property.
If you’ve done your homework and understand what you’re looking for, you can avoid wasting time looking at properties that won’t work for you. But don’t be afraid to take as much time as you need. Work With An Agent To Speed Up The Process The best way to fast-track your shopping process is to work with a real estate agent. Real estate agents are local professionals who are experts in the market and the home buying process. A real estate agent can help you find homes in your budget and narrow down your search. They can also help you submit a strong offer and speed up negotiations.
Step 3: Submit An Offer Have it Accepted And Negotiate (About 1-5 Days)
Your real estate agent can help you make an offer when you find the right home and you’re ready to buy. An offer letter lays out the terms of the sale and includes details like the price, closing costs you want the sellers to pay and any repairs you need made before closing. Your real estate agent will handle the job of writing your offer and negotiations.
When the sellers receive your offer letter, they have three different options to proceed: Accept the offer: Reject the offer: Make a counteroffer:
Step 4: Prepare For Closing - Submit Paperwork - Do Inspections (About 1 Month)
Most lenders require 30 – 45 days to finalize the details of your loan and to make sure your home meets your loan’s minimum requirements. Your lender will schedule an appraisal and underwrite your loan during this time. We coordinate inspections and final items during this time.
The Appraisal - This is because the appraisal ensures that the lender isn’t giving you more money than your home is worth.
Underwriting - Your lender verifies your income, assets and debt to make sure that you qualify for a loan during the underwriting process.
Home Inspection - A home inspector will look at things like a home's foundation, structural components, roof, HVAC, plumbing, and electrical systems, then provide a written home inspection report with results.
Step 5: Close On Your Loan (About 1 Week)
It’s time to close once your appraisal clears and your lender finishes underwriting your loan. Your lender will first issue you a document called a Closing Disclosure. This document outlines the final terms of your loan, including your APR and what you must pay in closing costs.
You’re officially a homeowner after you finish up your closing meeting and sign a bunch of documents!!!
Summary: You Could Be In A New Home Sooner Than You Think
Most buyers can expect to spend around 6 months purchasing a home. It will usually take about a week to get your mortgage preapproval after you apply, and you’ll spend around 3 months looking at properties. It may take you between 1–2 months to negotiate an offer with the seller depending on your local real estate market. From there, it will take around a month for your lender to finalize your loan and another week to schedule a closing meeting.
Remember, buying a home is a personal process that differs for everyone. Some pe
