A Step-By-Step Timeline For Buying A Home
The precise length of time it takes to purchase a home depends on a number of variables, including the buyer’s level of preparation and the level of market competition.
Let’s examine the critical actions that will affect how long it takes to buy a house.
Step 1: Choose A Mortgage Lender And Get Preapproved (1 – 5 Days)
To finance your home purchase, unless you’re making a cash offer, you’ll most likely need a mortgage. To ensure you’re getting the best deal on your home loan, look around for the best mortgage lender before you start looking for a property.
When selecting a lender, take interest rates and projected closing costs into account, but don’t undervalue the importance of researching their reputation. On paper, a great deal might not be worth it in the long run if it comes with untrustworthy customer service.
Upon securing a reliable lender, you might want to think about obtaining a mortgage preapproval. It’s advantageous to get preapproved before starting your home search for a number of reasons. The preapproval letter will, first and foremost, tell you how much house you can afford. And it’ll show sellers that you’re a serious buyer.
Preapproval may take one to five days, depending on the lender.
Step 2: Find A Real Estate Agent (1 – 7 Days)
There are several ways to locate a real estate agent, ranging from internet directories to recommendations from friends and family. Working with a certified specialist who is knowledgeable about the market you are interested in is the aim. Make sure the person you choose to handle your home buying needs is someone you can trust.
The number of factors that determine how long it takes to find an agent You might not feel compelled to interview the agent or evaluate them against other agents if they were referred to you by a friend. However, you will probably take all the time necessary to locate an agent with whom you feel at ease if you want every choice you make to be supported by your research.
Step 3: Start House Hunting (6 Months – 1 Year)
Think about things like your ideal location and the amount of bedrooms and bathrooms you require before you begin your home search, and then establish search parameters. The most time-consuming part of the home-buying process is finding the ideal property, so being ahead of the game with your expectations and understanding what to look for in a house can help you move more quickly.
Your search for a new residence will take some time depending on a number of variables, such as:
- The market: Finding a home could take longer in a seller’s market since there is more demand than supply. In a buyer’s market, when there are more properties for sale than buyers, you might find it easier to find a place to live.
- The location: Buyer competition may cause a delay in the process if you’re looking for a home in a highly sought-after area. Additionally, you might have to put off your plans to buy a house until you locate one within your price range if the average sales price is higher than you can afford.
- Your requirements: Finding a new home may take longer if you have a lengthy list of requirements. Your search will be more limited the more rigid and specific you are. Conversely, it could be more difficult for you to commit to a property if you start looking for a home and have no idea what you want.
- Your schedule: It might take you longer to find a house if you’re extremely busy and can only attend showings on the weekends.
Step 4: Make An Offer (1 – 3 Days)
Work with your real estate agent to submit an offer on a house once you’ve found one you want to purchase. At this point, your agent will conduct a comparative market analysis to establish a reasonable purchase price. They will also assist you with any additional terms you wish to include in the offer, like a deposit of earnest money or contingencies.
The seller may have a deadline in some states to respond to your offer. However, sellers usually reply to offers within three days. The seller has the option to proceed with negotiations by accepting, rejecting, or making a counteroffer. Negotiations typically don’t last more than a few days. Additionally keep in mind that the seller is typically just as eager to sell as you are to purchase a home.
Step 5: Secure Your Mortgage Loan (30 – 60 Days)
It will take some time for your mortgage lender to underwrite your loan, even after you receive your preapproval. The process of examining and validating your financial data, such as bank statements, pay stubs, and other documents, as well as details about the property you’re purchasing, is known as mortgage underwriting. Usually, the underwriting process proceeds concurrently with the home inspection, appraisal, and closing arrangements.
You can greatly impact how long the underwriting process takes, as it may take a few days or several weeks. In order to expedite the procedure and prevent any obstacles during the process, we advise getting your documentation ready beforehand, answering all inquiries and requests from lenders promptly, and delaying taking on new debt while everything is going on.
Step 6: Get A Home Appraisal (2 – 7 Days)
After the purchase agreement is signed, a home appraisal will be ordered by your mortgage lender. This is an important step in the process. The fair market value of the property is ascertained through the appraisal. Your lender’s maximum loan amount is the home’s fair market value. You will either have to pay the difference out of pocket or work out a better deal with the seller if the home appraises for less. Either of these scenarios can extend your timeline.
Usually, the home appraisal takes place when your lender is processing your loan application. The appraisal process may take several hours or as little as twenty minutes, depending on the size of the property.
Following the home visit, a third-party appraiser will produce a report by comparing the property to comparable, recently sold homes in the neighborhood. The time it takes to generate a report can vary, depending on the appraiser, from one day to several days. The appraiser’s availability and the date the lender orders the appraisal will determine how long it takes to finish.
Step 7: Schedule A Home Inspection (3 – 10 Days)
A home inspection is a comprehensive visual assessment of the property to identify any problems that may need to be fixed, whereas an appraisal provides you with an estimate of the home’s value. Inspections can uncover red flags.
Home inspections typically take a few hours to complete and happen a few days after contacting an inspector. The inspector will then write a report, which, depending on the property, may take several days to complete.
If the inspector finds any problems, you might have to bargain with the seller. If there are major issues, you can ask the seller to address them before closing or negotiate a reduction in the purchase price to partially cover the cost of the repairs. These negotiations can potentially lengthen your purchase timeline.
Step 8: Do A Final Walkthrough (1 Day)
Before closing, buyers have one last chance to inspect a house during the final walkthrough. This final phase in the house-buying process is very important. Make sure everything in the house is in as good of condition as it was when you bought it.
Make sure the seller finished any repairs you requested as a condition of the sale before you sign the closing documents.
Step 9: Close On Your Home (7 – 14 Days)
A title company will conduct a property survey and title search during the closing process to make sure the property is free of outstanding claims. Your lender will prepare a Closing Disclosure, and you will buy homeowners insurance.
The final terms of your loan, including your annual percentage rate (APR) and closing costs (such as any escrow, title, property tax, and lender processing fees) are detailed in the Closing Disclosure.
Your lender must set up your closing date after providing you with a minimum of three business days to review your Closing Disclosure as required by law. You will receive the keys to your new house at closing, sign your mortgage agreement, and pay your closing costs and down payment.
What To Consider Before Buying A Home
When the time comes, being aware of the procedures involved in purchasing a home will help you move quickly. Make sure you have the necessary funds in place before moving forward with the purchase of a home. Being financially prepared entails making sure you can obtain the necessary financing and setting aside money for a down payment and closing costs.
Your credit history and credit report will dictate your mortgage eligibility and interest rate, so check your credit report and, if needed, raise your credit score. It’s crucial to take into account aspects of your house search that have nothing to do with finances, like neighborhoods you’d like to live in and the kind of house that best fits your lifestyle.
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Let’s examine some frequently asked queries regarding the length of time needed to purchase a home.
Is 60 days enough time to buy a house?
The kind of mortgage you choose, the state of the housing market, and other factors will all affect how long it takes to buy a home. However, mortgage-related real estate transactions typically take 60 days or less. It might take longer if you encounter an unforeseen problem like a low home appraisal, issues with the home inspection, or delays in underwriting.
What’s the average amount of time it takes to buy a house using a mortgage?
According to ICE Mortgage Technology™, a data firm that processes mortgage applications, in June 2021, the average time to close on a mortgage was 51 days.
How long does it take the average person to buy a house?
The time it takes to find a home you want to buy and have your offer accepted can vary depending on the local market, your goals, and your financial situation, even though you might be able to close on a property in 30 to 45 days.
Although purchasing a home can be a drawn-out process, being aware of the procedures ahead of time may help you shorten the time it takes to complete the transaction.
Apply for a mortgage now if you’re prepared for professional assistance with the purchase of a home!
Take the first step to buy a home. Quicken Loans® lets you get to house hunting sooner.
Financial writer and data journalist Katie Ziraldo is committed to producing factual, readable, and instructive content for upcoming generations of homebuyers. The Detroit Free Press and The Huffington Post are among the publications in her portfolio.
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FAQ
How fast can you get approved for a mortgage?
The duration of the mortgage approval process varies based on your unique situation and the state of the market, ranging from a few weeks to several months. Continue reading to find out what to anticipate from the procedure and how to expedite it.
How long does it take to get a mortgage approved?
Usually, it takes up to 14 days for your mortgage application to be approved after you submit it. It may take an additional two weeks for you to receive the official mortgage offer from the lender. Therefore, it usually takes two to four weeks from application to offer.
How long does it take to get full approval for mortgage?
Between the time you submit your application to your lender and when you receive formal approval, it usually takes four to six weeks.
How long should I wait to get a mortgage?
Usually, they want to see proof of at least two years of employment with the same company. Lenders will require proof of at least two years’ worth of self-employment income if you work for yourself. A history of consistent income affects more than just your eligibility for a mortgage.
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