The Home Buying Process Timeline: How Long It Takes To Buy A House

As you’re preparing to buy a home, it’s natural to wonder how long the process will take. And the truth is that there’s no answer that applies to everyone. For some, the process takes months, while for others, it can take years.

The good news is that once you’ve done the preparation work and are prepared to dive in, it’s much easier to estimate how long the home buying process timeline is. Keep reading to learn the different steps of buying a house and how long each step takes so you can feel confident going into your home buying journey.

Part One: Before You Find Your House

The home buying process begins long before you’re ready to start making offers on homes. There’s some preparation work you’ll need to do ahead of time to ensure you’re prepared for homeownership.

1. Plan Your Home Buying Strategy (Can Take 6+ Months)

Before you start shopping for homes, it’s important to plan ahead. You want to make sure your finances are in a good position to buy a house, which will help set you up for a successful purchase, as well as financial comfort moving forward.

• Stabilize your income: When you apply for a home loan, mortgage lenders want to see that you have a stable income to ensure you’ll be able to make your monthly payments. If you don’t have a stable income or at least 2 years of income history, you may need to wait before you can qualify for a loan.
• Budget for your future house: When you buy a house, it’s critical that you’re in tune with your budget and know how much house you can afford. While your lender will preapprove you for a certain amount, that may be higher than what realistically fits comfortably within your budget. Make sure to leave room in your budget for other costs associated with homeownership, as well as your other financial priorities.
• Check your credit score: When you apply for a mortgage, your credit score is one of the most important factors lenders will consider. A mortgage-ready credit score is necessary not only to qualify for a mortgage – most conventional loans require a credit score of at least 620 – but also to get the lowest interest rates.
• Save for a down payment: Most home loans require a down payment of at least 3%, though buyers are often encouraged to put down even more than that. For many buyers, saving enough can take months, if not years. If you’re considering buying a house in the future, start saving early.

2. Connect With A Real Estate Agent (Can Take 1 – 2 Weeks)

Finding the right real estate agent is a crucial part of making the home buying process go more smoothly. Your real estate agent will guide you through each step of buying a home. They’ll advise you when you’re looking at homes, when you’re ready to make an offer, and as you make your way through the closing process.

While you technically don’t need a real estate agent to buy a home, there’s no downside to working with a professional. A good agent’s knowledge and experience is invaluable.

3. Choose A Mortgage Lender (Can Take 1 – 3 Days)

The next step of the home buying process is choosing a mortgage lender. There are many lenders to choose from. The right lender for you depends on where you live, the type of mortgage you’re looking for, your financial situation and more.

Once you’ve narrowed down your search to a few lenders, consider getting rate quotes from all of them. This step can help you identify which lender will give you the most affordable mortgage, considering both interest rates and closing costs/fees.

4. Apply For A Mortgage (Can Take 1 – 3 Days)

Before you make an offer on a house, it’s important to get preapproval for a mortgage. Preapproval shows that a lender will give you a loan based on the financial information you’ve provided. It’s important for you, as it can help you narrow down your budget. Additionally, it’s important for sellers, as it shows you’re prepared to buy. Many sellers prefer to accept offers from buyers who have been preapproved for loans.

Part Two: The House Hunt

At this point, you’ve done all the prep work, and you’re ready to buy a home. This is an exciting phase of the home buying journey, but the amount of time it takes may vary based on your situation.

5. Find The House You Want (Can Take 2+ Months)

Touring homes and finding the one you want to buy is one of the most important parts of buying a house. However, house hunting can also be frustrating. After all, it may take longer than expected to find the perfect home, or the homes you’re drawn to may be out of your budget.

As you’re looking for your perfect home, here are some characteristics to consider:

• Neighborhood
• Public school considerations
• Commute and transportation availability
• House conditions
• Square footage
• Number of bathrooms and bedrooms
• Yard size and condition
• Basement, attic and garage

6. Submit Your Offer (Can Take 1 – 3 Days)

Once you find the perfect home, it’s time to make your offer. Your real estate agent will be prepared to help you craft your offer. There are several key components that can be included, and it’s important to consider how they protect you while still making your offer appealing to a seller.

• Contingencies: A contingency is a clause in a home sale agreement that allows you to back out if certain conditions are met. For example, a contingency may allow you to back out of the sale if the house doesn’t pass inspection or if the appraisal comes back too low.
• Closing dates: When you’re buying a home, you and the seller will have to agree to a closing date. The closing process generally takes 30 – 45 days, but it depends on the needs and preferences of both parties.
• Earnest money: Earnest money is a deposit you make upfront to show the seller you’re serious about buying the home. The earnest money, which is usually 1% – 3% of the home, sits in escrow and counts toward your down payment at the closing.
• Escalation clause: If multiple parties make an offer on the same home, you could find yourself in a bidding war. An escalation clause automatically increases your offer to a certain amount if the seller gets a higher offer from someone else.
• Seller concessions: When you buy a home, you’ll be on the hook for closing costs and fees that often amount to several percent of the purchase price. Depending on the housing market, you may be able to ask for concessions, which is when the seller agrees to pay for a portion of those costs.

It’s worth noting that just because you make an offer on a home doesn’t mean you’ll get it. Especially in a seller’s market, it’s common for homes to get many offers, giving the seller the opportunity to pick their favorite. You may need to go through the offer phase several times before you have one accepted.

Part Three: Finishing Touches

Having your offer accepted on a home is an important step, but your work isn’t done yet. Once you’ve found the perfect home and the seller has accepted your offer, there are a few more steps left before you officially own your home.

7. Get Your Loan Processed (Can Take 3 – 6 Weeks)

Once your offer is accepted and you officially apply for your home loan, you’ll have to go through the underwriting process. During this phase, the lender takes a close look at your personal finances to ensure you’re eligible for a loan.

In addition to your lender going over your financial documents and statements, there are several other things that will happen during the loan processing:

Home Inspection (Roughly 1 Week)

A home inspection is when an inspector takes a close look at your home to ensure there aren’t any major issues. They look at the structure itself, the systems and more. The home inspection should help you get to know your new home better, as well as tell you if there are any costly repairs that may be required after you close – or that will allow you to use your inspection contingency to back out of the sale altogether.

Appraisal (Up To 2 Weeks)

A home appraisal is almost always required by a lender during the buying process. The appraisal determines the fair market value of the home. If the home is appraised too low (lower than your offer, for example), you’ll have to either renegotiate the sale price or pay the difference in cash.

Title Search (1 – 2 Weeks)

A title search before you can close on your home. The title search looks at public records to ensure there are no issues with the house’s title. It helps you verify that the seller is legally able to sell the home and that there are no liens on it.

8. Get Your Closing Disclosure (Can Take 1 Day)

The Closing Disclosure is one of the most important documents you’ll get during the home buying process. It lays out the final terms of your mortgage, including your loan amount, interest rate, closing costs, monthly payments and more.

Lenders are required to provide you with the Closing Disclosure 3 days before closing. If there are any issues with or questions about the document, it’s important to address them as quickly as possible.

9. Perform A Final Walk-Through (Can Take 1 Day)

In most cases, you’ll take a final walk-through just before you close on your home. This walk-through allows you to make sure the house is in as good of a condition as when you made the offer. You can take inventory of everything in the house to make sure the seller hasn’t taken anything they shouldn’t have.

While it’s difficult to back out of the sale at this point without losing a considerable amount of money, the walk-through at least gives you the chance to address any issues with the seller.

10. Celebrate Your New Home (Can Take 1 Day)

The final step of the home buying process is the closing day. At the home closing, you’ll sign your closing documents and officially take ownership of your new home. You’ll bring the money needed for your down payment, closing costs and any other upfront costs. You’ll leave the closing with a mortgage and the keys to your new home!

How Long Does It Take To Close On A House?

There’s no set deadline for how long the closing process takes when you’re buying a home. On average, buyers typically finish the closing process somewhere between 30 – 60 days after finding the home they want to purchase.

While the closing process can take longer, there are ways you, as a buyer, can help keep things on schedule. Be as responsive as possible with your lender and provide all documents and other information requested to ensure you’re able to close on time.

The Bottom Line

The home buying process is slightly different for everyone. When you include the preparation phase, it can take months (or years) to get ready to buy a home. The good news is that once you’re ready to make the leap, you could own your dream home in just a couple of months.

If you’re preparing to buy a home, start your home buying journey today by starting an application with Rocket Mortgage^®.