Buying a Home Doesn’t Deliver Instant Gratification
Buying a home doesn’t deliver the instant gratification you’re accustomed to in today’s e-commerce world. There’s no "Buy Now" button for real estate — the process requires a number of steps and a lot of patience.
Timeline to Buy a House, Step-by-Step
Step 1: Get Preapproved
If you’re financing your home purchase, the first step is to get preapproved for a mortgage. A mortgage lender will typically ask for information about your assets, income, and credit history to assess how much they’re likely to loan you. Your preapproval letter will serve as evidence to sellers that you’re a qualified buyer. Preapprovals aren’t good forever, though — they typically last between 60 and 90 days.
Before you begin the preapproval process, consider what you’ll look like in the eyes of a lender. Do you have any errors on your credit report? Are you carrying a hefty balance on a credit card? Lenders need to feel confident that you will be a responsible borrower.
Step 2: Go House-Hunting
Once you’re preapproved for a mortgage, you’ll know how much house you can afford. That means it’s time to start looking for one. At this stage in the process, you can start working with a real estate agent, checking out open houses, and looking at listings in earnest.
Step 3: Make an Offer
Once you’ve found a house you want to buy, your real estate agent will help you submit an offer. Your agent can help you decide on an offer that’s competitive, aligned with home prices in your area, and reflects your best interest.
Step 4: Go to Contract and Schedule a Home Inspection
If your offer is accepted, you’ll go into contract on the home. The contract negotiation process can take some time, especially if there is back-and-forth discussion of particular terms.
Step 5: Apply for a Mortgage
Now you need an official mortgage loan, not just a preapproval. This is a whole new application. You don’t have to go with the same company that preapproved you, though you can — shop around for a mortgage lender who can offer you the best rate and terms.
Step 6: Close and Get the Keys to Your New House
Finally, after all that work, closing day has arrived. At closing, you will need to sign a small mountain of paperwork and pay everything you owe. Once this final step is complete, you’ll get the keys and officially be a homeowner.
How to Avoid Delays When You Buy a House
According to NAR, 15 percent of home-sale contracts encountered delays that held up the closing in July, August, and September of 2024. There are a wide range of potential issues that can create stumbling blocks, including:
- The buyer has trouble securing financing.
- The buyer has trouble securing homeowners insurance.
- The home appraisal comes back lower than the loan terms.
- The home inspection identifies the need for serious repairs.
- There are issues with the title.
- The buyer loses his or her job.
One last simple rule to help make the homebuying process pain-free: The best way to avoid delays is to treat communications from your agent and lender as a top priority. If your lender requests additional documentation of your income or employment, for example, respond as quickly as possible.
Key Takeaways
- Buying a home is a long, multistep process that can take several months or more.
- Even once you go into contract on a home, it typically takes more than a month to actually close.
- All-cash purchases can move much faster than those that are financed, as there is no mortgage lender involved.
Conclusion
Buying a home is a complex and time-consuming process. From getting preapproved to closing the deal, it’s essential to be patient and plan ahead. By understanding each step of the process and avoiding common delays, you can make the homebuying experience smoother and more successful.
Frequently Asked Questions
Q: How long does it take to buy a house?
A: The entire process can take several months or more, depending on various factors such as the local market, financing options, and the complexity of the transaction.
Q: What is the average time to buy a house?
A: According to data from ICE Mortgage Technology, the average time to buy a house, from contract to closing, was 44 days as of October 2024.
Q: Can I avoid delays in the homebuying process?
A: Yes, by treating communications from your agent and lender as a top priority, being prepared with necessary documentation, and avoiding major changes to your financial situation, you can minimize the risk of delays.
Q: What happens if I lose my job during the homebuying process?
A: Losing your job during the homebuying process can significantly delay or even halt the transaction. It’s essential to have a stable financial situation and a secure income before applying for a mortgage.
