UPDATED: Apr 2, 2024
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.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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:
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.
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.
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.
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.
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.
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!
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 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®.
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