How Long Does It Typically Take To Buy A House?
Amid the eagerness and anticipation of buying a new house, one question will never leave your mind- how long does it take to buy a home?
Buying a house is different from the e-commerce world we are accustomed to. You won’t find a “buy now” button and no same-day delivery.
Buying a house is one of the biggest purchases a person can ever make. It requires thorough planning that aligns with your goal. This is a must! Afterall, you are about to spend a good fortune on it.
Sometimes, the process might seem daunting, but it is also fine if you feel overwhelmed. Various reasons affect the overall timeline of buying a new house.
It can be financial needs, the specific time of the year, or even difficulty finding the perfect home you are looking for.
But the process is shorter. In this blog, I will help you understand how long it takes to buy a home and guide you through the steps.
How Long Does It Take To Buy A Home?
Before you start looking for a home, it is important to know your needs. What exactly are you looking for, and how much can you afford? I recommend doing some research on the current real estate marketplace.
On average, it takes about 40-50 days to take a closure on a mortgage loan. But the entire process of buying a house might take you several months or even a year. If you want to shorten the process, keep yourself prepared.
Find A Reliable Agent (Takes up to two Weeks)
I am not saying that you must look for a real estate agent. No, it is not mandatory at all. But I suggest you look for professionals with better knowledge of the local market.
The experts can help you negotiate or find a suitable deal to improve your buying experience. On top of that, sellers pay for the commission of buyer’s agents. So, it will never affect your finances.
You can start with your friends and family members. Ask them to recommend some agents to you. Then, you can interview each agent to understand better their expertise, approach, and knowledge that can help you buy a house.
Remember, this person will work as your advisor. So, take time and find whoever is the right fit for you.
Get Yourself Pre-Approved (Takes One to Two Weeks)
Usually, the preapproval process can take a few days, but from my experience, I’d say those few days might seem too short for you. It will be good to compare different lenders and loan programs to determine which fits you best.
You can work with a mortgage broker. They usually take a single application to shop around. But if you plan to avoid paying brokers, you can submit applications to lenders separately.
Getting pre-approved takes you a step closer to getting approved for the mortgage. Thus, you will be required to submit information about yourself.
You may also have to submit documents such as bank statements, tax return papers, etc., I suggest you gather all the papers together, If you haven’t already.
Search For A House (Takes Weeks to Even Months)
Once you receive the preapproval letter, you will have 30-90 days to find a house. So, talk to your agents. Tell them about the type of house you are looking for and your needs and wants.
This will help them list all the houses for you to choose from. They can also set the date and time for viewing apartments based on your liking.
But you can search listings with others. There are real estate sites online. You can consider going through them once. If something catches your eye, send it to your agents. They will do a further background check.
There can be instances where you may have found yourself a dream home. However, finding a suitable and livable property can take weeks and even months.
Offer And Negotiation (Can Take a Week)
Offers and negotiations are among the most important aspects of buying a house. You can inform your agent if you find a suitable home to satisfy your wants and needs. Your real estate agent can help you to get the best deal.
They contact the sellers and try to negotiate a potential deal for you. This solely depends on the terms you offered, and the terms others have offered. The sellers compare before accepting, rejecting, or even making a counteroffer.
Your offer might take time to get accepted. In that case, don’t lose hope. Your agents are there to help you negotiate the terms to keep both parties satisfied.
Once both parties are satisfied with the deal, you sign a contract with the seller.
Approval For A Loan And Due Diligence (15 Days to Even Two Months)
Once you sign the contract, some lenders can close your mortgage loan in 15 days. Meanwhile, the others might take a month or even two. In this process, you should give a complete presentation of your financial condition to the loan officer or the broker.
The lender will also be required to inspect the new property and other things in this process. This further helps you to get your loan approved. This is the only time you can still back out of the contract, and you won’t have to pay any penalty.
There may be instances where the contract or the property itself is faulted. So, you can get out of that contract. You will have a week or two to wrap everything up!
In the meantime, you can do some basic research on the surroundings of the home you chose. This will help you determine whether it is the perfect fit for you.
You can also look for insurance and compare to get it right on time.
Closure Of The Loan (Takes A Day)
Once you have completed the due diligence, you will receive the final approval for your loan. Then, you will meet your agent and a real estate attorney who can help you complete the transaction with proper transparency.
There are certain things that you will need to bring:
- Proof of your identity
- Insurance coverage proof
- The required funds
Also, ensure that if there are any issues with the title of the property or anything else. Once you finish that, you can complete the signing process in an hour or two.
Things You Should Look For When You Are Property Scouting
When you wonder how long it takes to buy a home, another factor comes into play.
A good location is one of the crucial things you should consider when looking for a property. You may prefer convenience for transportation or a simple suburban area.
So, first, try to understand your needs and wants. This can help you find the perfect location. Other than that, there are some other factors that people often consider:
- The curb appeal
- The entire layout of your property
- The size of your house
- Number of rooms, bedrooms, windows
- Accessibility of natural light and air.
Things you can do to avoid delay while buying a house
many potential hurdles can create a delay in the process of buying a property. Almost 15 percent of house sales encountered delays, further closed from June to August 2022.
Some of these hurdles are:
- The buyer has faced issues in securing the financing.
- The appraisal report value doesn’t match the ultimate loan terms.
- The house required repairs as per the house inspection.
- There are issues with titles and deeds.
- The buyers lose their sources of earnings.
- Difficulties with hazard and flood insurance.
If you come across such issues, don’t panic. There are a lot of ways that you can use to avoid such delays. For example, you must prioritize communication with your lender.
Suppose the lenders are asking for additional information like additional employment documentation. You must provide them as soon as possible. A quick response can save you from such delays.
Lastly, I suggest another thing to help you have a smooth process: gather your finances as early as possible. Securing preapproval as a top priority can help you avoid potential delays. Apparently, you will have an easy and quick transaction.
Wrapping it Up!
Buying a new house is a major task. As I mentioned earlier, it can take months or even years. The timeline of buying and moving to your home depends on many factors.
Once you receive all the initial approvals, you must show it to your sellers and agents. And voila! You are all set to buy a new property.
I hope this blog will answer your question: how long does it take to buy a home? And help you to make a smooth and easy house purchase.
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