How Long Does It Take to Buy a House

Owning a home is the dream of every couple starting a family. Home ownership comes with a
sense of pride and security. A home has more than four walls and a roof for shelter. That home
becomes a family's legacy that is passed down from one generation to the next. How long does
it take to buy a house? That depends on the following factors.

How Long Does It Take To Buy A House?

The home buying process begins with putting your financial house in order. That involves a
deep dive into your income, expenses, and future spending. Setting up that budget becomes the
foundation for your mortgage process. Once you know those numbers, you'll learn how much
home you can afford. That is crucial knowledge for the home buying process.

Another major factor impacting your home buying timeline is the inventory of homes for sale. If
you're in a seller's market, the inventory of homes will be reduced. That could mean dozens of
prospective buyers are putting offers in on homes. That could prolong your house hunt. It will
help if you are working without a deadline. That allows you to make smart choices.

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Step 1: Get Pre-Approved For A Mortgage

A mortgage pre-approval isn't a guarantee for a home loan. However, it does establish your
financial readiness to secure that loan. In other words, the mortgage pre-approval sets you up to
find a qualifying loan company to put that loan together quickly.

What is mortgage pre-approval?

A mortgage pre-approval serves as a written confirmation from a mortgage lender that you meet
the initial criteria for the mortgage amount you've applied for. This determination is made after
thoroughly evaluating your credit history, credit scores, income, and assets. Consider a pre-
approval as your early green light in the home loan process.

Why is mortgage pre-approval important?

Being armed with a mortgage pre-approval letter puts you in a different class of home buyer. It
signals to all the sellers you might encounter that you're well-equipped to secure a home loan.
That instantly sets you apart from potential buyers who lack this essential credential. That
distinction becomes especially vital in competitive real estate markets.

When you get pre-approved for a mortgage from multiple lenders it boosts your chances of
getting your home offer accepted. Buying a house typically ranks as one of life's most significant
investments. Even a slight variance in different lenders' interest rates can translate into
substantial savings.

How to get pre-approved for a mortgage

Ensuring a smooth pre-approval process starts with careful preparation on your part. Since pre-
approval is a more comprehensive evaluation than pre-qualification, aligning your finances is
paramount before taking the plunge.

Start with a deep dive into your credit score. That number will significantly influence a lender's
decision for your future loan. Services like CreditWise® from Capital One or Experian's free
credit monitoring can help you gauge your credit health. While you may not see the exact score
mortgage lenders use, it provides a solid glimpse into your credit standing.

Next, assemble the documentation that will give lenders insight into your financial profile,
encompassing debt, income, assets, and various aspects of your finances. Having the following
items ready is a good starting point:

 Your two most recent pay stubs

 Tax returns from the last two years
 Bank statements from the past 60 days
 Employment verification documents
 Contact information for your employer
 A comprehensive list of your debts
 Statements from investment accounts, including 401(k) and IRA
 Proof of rental payments or landlord details
 Gift letters, if you receive funds for your down payment

It is vital to have all your paperwork in impeccable order before applying. That proactive
approach minimizes the need for protracted back-and-forth exchanges with your lender. That
will cut down on the time for how long to buy a house and streamlines the pre-approval process.

Step 2: Find A Real Estate Agent

When you begin your quest to find a new home, you'll want to build a team. Your real estate
agent is one of the most important players on that team.

What does a real estate agent do?

An experienced real estate agent, whether you're working with them as a buyer or a seller,
brings a wealth of knowledge and expertise to the table. That knowledge begins with an intimate
understanding of the local landscape. Beyond property values and recent sales, they should be
well-versed in the finer details of neighborhoods, school districts, and more.

Your real estate agent is also your go-to source of information. They should be prepared to
answer your questions, especially if you're a first-time buyer. From explaining the nuances
between "pending" and "contingent" to explaining the necessity of title insurance and disclosure
forms, your real estate agent is your knowledge source.

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Communication is key no matter throughout the entire home buying process. Your real estate
agent is your bridge between the two sides of the transaction. They maintain open lines of
dialogue with the other party's agent, facilitate negotiations, and keep everyone informed about
the deal's progression.

Buying or selling a home is often an emotionally charged journey, and a compassionate agent
offers encouragement, a dose of reality, or a comforting shoulder to lean on when needed. As
the closing date approaches, your agent provides updates and eases anxieties that may arise.

How to choose a real estate agent

You could work with your real estate agent for several months or longer. You want to choose an
agent you feel comfortable with and who you trust. Start your real estate agent search by
seeking referrals from friends and family.

You can take a more hands-on approach by personally exploring your local housing market. As
you tour potential neighborhoods, look for recurring agent names on real estate signs. That is
especially true for signs with the coveted "sold" indicator.

Another on-the-ground tactic is attending open houses. These events allow you to assess a
potential agent's engagement with prospective buyers and provide an opportunity for personal
interaction.

Step 3: Start Shopping For Homes

Your home search can determine how long does the home buying process takes. Your first stop
on your home-buying quest will probably be an online real estate search website. At first glance,
you might be overwhelmed by all the potential choices. There is nothing wrong with clicking
"save" on all your choices. Once you've assembled that "saved" list, it’s time for a closer look.

What to look for in a home

The first thing you'll notice on any home is the price. If that price is out of your range, you might
take a peek inside, but you don't want to spend a lot of time there. You want to focus on the
homes you can afford. Here are some of the elements you need to look for in a new home:

The Neighborhood
The adage "location is everything" rings true for your new home and its potential resale value
down the road. Do comprehensive research about the area. Look into schools, transportation
access, and proximity to shopping, restaurants, and parks. Also, consider job opportunities and
flood zone risks. You want to look at everything that might influence the home's long-term value.

Home Size
Size, both in terms of bedrooms and bathrooms, as well as storage space, plays a pivotal role in
ensuring your new home will meet your family's needs. Equally crucial is the home's floor plan.
Is it functional? Does the square footage fit in with your lifestyle and future remodeling plans?

Remember to examine the garage, if there is one. Evaluate parking options, garage type, and
the level of storage space it provides.

Home Exterior
While inspecting the interior, don't neglect the home's exterior. A close examination of the
foundation, roof, siding, and yard maintenance can reveal essential insights that might
otherwise remain hidden. This thorough evaluation can save you time and money by identifying
necessary repairs or maintenance before or after closing.

Home Systems
Pay attention to the mechanical systems of a home, including HVAC, electrical, plumbing, and
water heaters. These systems are the lifeblood of your daily comfort, making them far more
critical than cosmetic details. Look beyond paint colors and focus on the functionality of these
essential components.

Signs of Damage
Look for signs of damage, both inside and outside the property. That damage could include foul
odors, water damage, mold, and potential electrical issues. Structural concerns can manifest as
significant cracks along walls or ceilings.

Future Renovations
Furthermore, consider the potential renovation needs of each home you explore, from minor
updates like flooring and paint to more extensive projects such as kitchen remodels or room
additions. These considerations will help ensure your new home aligns with your expectations.

How To Make An Offer On A Home

When you make an offer on a home it is presented in a purchase agreement. That is a
comprehensive document outlining several critical elements.

These elements include the purchase amount you're willing to pay, any contingencies you wish
to impose, a breakdown of associated fees, a proposed closing date, and a specified timeframe
within which the seller must respond. Among the various contingencies at your disposal, some
commonly requested ones encompass:

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Home Inspection Contingency
The home inspection contingency signifies that your offer is contingent upon the property
passing rigorous home inspections. Should any issues arise during these inspections, the buyer
typically opts not to negotiate further.

Appraisal Contingency
Once the seller accepts your offer, your mortgage lender will conduct an appraisal to determine
if the proposed price aligns with the property's market value compared to similar homes. If the
appraiser finds the price to be outside an acceptable range, you retain the option to withdraw
your offer.

Home Sale Contingency

When you sell your existing home, this contingency stipulates that your offer depends on
successfully selling your current property within a specified timeframe.

Step 4: Get The Home Inspected

Home inspections are one of the factors affecting the home buying timeline. are a pivotal part of
the home buying and selling process. Neglecting this crucial step could result in substantial
financial repercussions and unnecessary complications.

What is a home inspection?

Typically, you get a home inspection is after the negotiation of a house contract. The buyer
takes charge of hiring a licensed home inspector and coordinating an inspection appointment for
them to assess the property thoroughly. Some real estate agents may facilitate this process on
behalf of their clients.

At the scheduled appointment, the inspector conducts a comprehensive examination of the

property's interior and exterior. Inspectors diligently search for any indications of foundation
settling, water infiltration, mold growth, or deferred maintenance.

Their scrutiny extends to pest-related concerns, like termite infestations, and in some regions,
they may even conduct radon tests if applicable. They will also examine the HVAC, plumbing,
and electrical systems.

Why is a home inspection important?

A home inspection is much like the test drive of a new car. It is the best way to see if your
purchase meets your needs. The results of the inspection can determine the final price for your
home. It will also reveal what issues you might have to take on as the new homeowner.

What to do if the home inspection finds problems

After the inspection, you'll receive a comprehensive report detailing the home's overall
condition. If the inspector finds any serious issues, you will have the opportunity to engage in
negotiations with the seller. These discussions may revolve around the seller addressing and
rectifying the identified problems or potentially reducing the sale price to accommodate the
necessary repairs, which you can undertake yourself.

In cases where the seller commits to making repairs, scheduling a follow-up inspection is
advisable to ensure that the work has been carried out correctly, granting you peace of mind as
you progress in your home-buying journey.

Step 5: Get Mortgage Approval

An "all cash" offer on a home means the buyer pays for the property upfront out of their savings.
There is no need for a loan. Although all cash offers are common, most homes are purchased
with a mortgage loan.

What is mortgage approval?

One of the tips for making home buying go smoothly is to have mortgage approval from an
accredited lender. When approved they will pay the homeowner, and you will begin paying the
lender the agreed amount for the loan.

How to get mortgage approval

Once you have identified a lender, you must prepare all necessary documents they request.
Those records include bank statements, employment contracts, tax returns, and credit reports.
When the application is complete, the underwriting phase starts. During this stage, the lender
thoroughly reviews your credit history, income, assets, debts, and the prospective property.

The underwriter primarily assesses four key criteria:

 Your credit score and history

 The down payment amount
 Your existing monthly debts
 Your employment and income history

While other factors, including assets, may also be considered, these four remain the focal points
of the underwriter's assessment. While strength in one area can sometimes offset weakness in
another, specific mortgage programs adhere to strict rules that lenders cannot bend.

Step 6: Close On The House

The "closing" represents the final stage in buying and financing a home. Also referred to as
"settlement," the closing ceremony gathers all the essential parties involved in a mortgage loan
transaction to execute the requisite documents that formally solidify the deal.

What happens at closing?

Depending on your location, the closing ceremony can transpire in different formats. It might
involve all parties gathering around a table and signing documents in unison. Alternatively, the
process could unfold over several weeks, with each party contributing their signature
separately.

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Some companies offer the option of electronically signing documents, either before the closing
date or at the actual event. In certain instances, closings can be conducted via mail or even
online.

When do I get the keys to my new home?

You will be given the keys to your new home when close on the house and all the documents
are signed and notarized.

Common Questions
What is the longest part of the house buying process?

The longest part of the house buying process is typically the search part. That is where
prospective buyers dedicate time to looking for the right property that meets their needs. This
phase can vary in duration depending on market conditions, the buyer's specific requirements,
and the availability of suitable homes.

Is buying a house a fast process?

How long is the process of buying a house? It is typically not fast. How fast depends on market
conditions, location, financing, and the buyer's specific requirements. From start to finish, the
home buying process can take anywhere between several weeks to several months.

Conclusion
If you're in a hurry to buy a home, kickstart your search with a mortgage pre-approval. Pre-
approval entails providing essential documents like W2s, bank statements, and debt
information. Completing this step before house hunting accelerates your progress once you find
the right home.

Finally, be prepared for flexibility if you need to purchase a home urgently. Real estate contracts
often involve contingencies, such as buying the home after repairs are done, which can
elongate the process. Negotiations with the seller may also require time as both parties come to
terms. Bottom line: The best decision for buying a home is an informed decision.

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