A common question people have is: how long does the homebuying  process actually take? 

If you're thinking about buying a home, that's great! Whether you're moving to a new city, expanding your family, or just looking for your dream home, knowing how long the home-buying process takes is important.

Buying a home is often a lengthy process with many steps involved. From finding the right property to closing the deal, it can take anywhere from a few weeks to several months. Factors such as loan approval, inspections, and negotiations can all influence the timeline.

Understanding how long each stage typically takes can help you better manage your expectations and streamline your home buying journey.

 In this blog, we'll break down the average duration of each step in the homebuying process to give you a clearer picture of what to expect.

Here are the 12 steps to complete home buying process:

Buying a property involves several steps, some easy and quick, while others take more time and effort. Here’s a simple breakdown of each step and how long they usually take:

1. Do Your Research:

Timeline: 1 to 14 days

Thinking about owning a home is exciting, but turning that dream into reality requires some work. Start by researching the housing market in your area. Figure out how much you can afford and make a list of what you really want in a home.

Talking to people who live in the area can provide valuable insights. You can also look online for information about the neighborhood and other important details.

2. Get Pre-Approved for a Loan:

Timeline: 1 to 2 weeks

Before you start looking for a home, you need to get pre-approved for a loan. A pre-approval letter tells you how much money the bank is willing to lend you, which helps you know what price range of homes you can afford.

What You Need for Pre-Approval

To get pre-approved, you will need to give your lender some financial documents:

• W-2s or Tax Returns: Provide these for the last two years. If you're self-employed, send your tax returns instead.
• Recent Pay Stubs: Include your latest pay stubs showing your earnings for the year.
• Bank Statements: Provide current statements for your bank accounts.
• Asset Statements: Include recent statements for any assets you have, like a 401(k) or IRA.
• Debt Statements: Share recent statements for any debts, such as student loans or car loans.
• ID: You’ll need to show a form of identification.

The Process

Once you submit these documents, your lender will review your finances and credit score to decide how much money they can lend you. To make the process faster, try to send your documents to the lender as soon as you can.

3. Find a Real Estate Agent:

Timeline: 1-2 weeks

Finding the right real estate agent is a crucial step in the home purchase process, and it's worth taking the time to ensure you're working with someone you trust and who understands your needs. Typically, this process takes about one to two weeks, but it's essential not to rush it. Start by reaching out to friends, family, or colleagues who have recently purchased a home for recommendations. Within about a week, you should be able to gather enough referrals to start contacting agents.

While it may be tempting to sign with the first agent you come across, it's wise to do some research first. Look into their specialties, customer reviews, and overall reputation in the industry. You want an agent who not only knows the market but also communicates well and makes you feel comfortable throughout the process.

Interviewing multiple agents is recommended by experts, as each one brings different strengths and specialties to the table. Consider factors such as their experience with your type of purchase, their technology skills, and their communication style. For example, an agent who can utilize tools like FaceTime or video calls to show you properties remotely can be a significant advantage in a fast-paced market.

Finding the right agent is about finding someone who aligns with your preferences and can guide you through the complexities of buying a home. Take the time to ask questions, assess their expertise, and ensure they're the best fit for your needs.

4. Look For A House:

Timeline: Typically, a few weeks to a few months

After you know how much money you can spend, you'll work with your real estate agent to find a new house. Your agent will show you homes that fit what you’re looking for. When you find one you like, you’ll go see it in person. This part of buying a home can take different amounts of time.

Home Search Timeline

The National Association of Realtors says that most people who buy homes online search for about ten weeks and visit around ten houses. It's important to think about what you really need in a home. This might include looking into neighborhoods, schools, parks, shopping areas, and how long it takes to get to work.

Documents You'll Need

• To get started, you’ll need to gather some documents:
• Recent statements for any loans (like student loans or car loans)
• A form of identification

5. Make an Offer:

Timeline: 1-5 days

Making an offer on your dream home usually takes 1 to 2 days. After finding the perfect house, you’re ready to move forward.

Your real estate agent will help you decide on an offer price and suggest putting down 1% of the price as earnest money. In competitive markets, offering 3% to 6% can show you’re serious. Writing a personal letter about why you love the home can also make your offer stand out.

Once you submit your offer, there’s a negotiation phase that lasts about 3 to 5 days. Your agent will help you with the offer, and then you wait for the seller’s response, which could be an acceptance, rejection, or counteroffer.

The response time can vary. Sellers usually have 24 to 48 hours to reply, but if there are multiple offers, it might take longer. To make your offer more appealing, consider offering more earnest money, which is a deposit that goes toward closing costs.

Be prepared for counter offers by knowing your budget and what you’re willing to give up. Responding quickly to counteroffers, ideally within 72 hours, can help speed up the process and impress sellers.

Once your offer is accepted, the property moves to contract, bringing you closer to owning your new home.

After researching, the next step is visiting potential homes, which can take from a week to several months, depending on the market and available properties. In some areas, you might make offers right after viewing homes, while in others, it may take longer or require multiple attempts.

6. Plan And Carry Out Inspections:

Timeline: 7 to 15 days

At this point, you will start juggling several tasks at once while buying a home.

Once you have a contract, it's important to schedule your home inspections right away. Keep in mind that inspectors usually need a few days to come to the house, so book them as soon as you can.

The inspections usually take a few hours, but radon tests can take several days. After the inspections, you will get a report soon after they finish.

You will have a few days to review the report and make a list of any repairs you want to request. The sellers will then have a few days to respond. After that, you will negotiate until you reach an agreement.

7. Get a Home Appraisal:

Timeline: 5 to 14 days, depending on the lender's response.

A home appraisal is very important when you're getting a mortgage. If the home is valued less than the mortgage amount, you might need to pay more upfront or change the terms of the deal. So, it's best to schedule the appraisal as soon as you have a signed contract for the house.

Unlike a home inspection, the appraisal report goes to the lender, not to you. It takes longer to complete because the appraiser has to research what similar homes are selling for in the area.

8. Buy Your Insurance Policies:

Timeline: 1 to 7 days

You need to buy any insurance that your lender requires. Usually, a basic homeowners insurance policy is enough. However, depending on where your new home is, your lender or local laws might ask for extra insurance, like flood, wind, or earthquake coverage.

Getting a policy should only take an hour or two once you start. But it's important to take your time and compare different options. You want to find a policy that fits your needs and your budget.

9. Closing Process to Finish:

Timeline: 3 to 5 Days

During this part of the process, you might experience some delays as your lender reviews your loan application. Here’s what to expect:

• Underwriting Process: Your lender will send your loan to underwriting, which is when they check all the details.
• Additional Documents: You may need to provide more paperwork to help finalize your loan.
• Home Appraisal: The lender will also arrange for an appraisal to find out how much the home is worth.

The time it takes to close your loan can vary based on the type of loan you have. For example:

• An FHA loan typically takes about 61 days to close.
• A VA loan usually takes around 60 days.

10. Obtain Final Mortgage Approval

Timeline: 3-4 weeks

This is the start of getting your mortgage, which usually takes about 21 days. You’ll need to work with your chosen lender to begin the process.

During this time, you’ll gather important documents like bank statements and pay stubs. Your lender will also lock in your interest rate. Expect to have an appraisal and inspection done on the property.

You’ll need to review closing costs carefully to understand your financial commitments. Keep in touch with your lender, as they may ask for more documents along the way. If any issues come up during the inspection or appraisal, you might need to renegotiate the price or discuss repairs with the seller.

A title search will check that the property is free of liens. You’ll also need to choose homeowners insurance and provide that information to your lender. Sometimes, your insurance company may require a pre-inspection before finalizing your coverage.

There’s a lot to do in these weeks as you move through the mortgage process, and be aware that it can sometimes take longer than expected.

11. Complete Escrow Tasks:

Timeline: 30-45 Days

During the 30 to 45 days of escrow, you need to handle several important tasks to keep your home purchase moving forward. Your lender will check on things like home inspections, property appraisals, and any extra paperwork. If you’re using an FHA or VA loan, it might take longer because of extra requirements. Also, if there are any changes in your credit or income since you got pre-approved, there may be additional checks.

• Stay Connected:Keep in touch with your team during this time. Respond quickly to any requests from your lender and let them know which home insurance you choose. Make sure to keep your real estate agent and attorney updated on the loan progress so everyone is ready for closing.
• Key Steps: In this month-long period, focus on scheduling a home inspection and shopping for homeowners insurance. These steps will help keep the escrow process running smoothly and lead to a successful home purchase.

12. Prepare for the Move:

Timeline: 1 month

It's time to get ready for your move! Start by reaching out to a nearby moving company to book your moving date. Don't forget to fill out a change of address form at the post office and figure out how to set up utilities in your new place.

If you're renting, check your lease for the notice period required to inform your landlord about moving out. Typically, it's around 30 days before your departure date.

Key Considerations Before Buying a Home:

Understanding the steps involved in buying a house can help you move quickly when the time finally comes. Before you take the next steps toward buying a house, make sure you’re financially prepared. Being financially prepared means saving for a down payment and closing costs and ensuring you can secure the financing you need.

Your credit and financial history will determine whether you qualify for a mortgage and at what interest rate, so review your credit information and build your credit score if necessary.

It’s also important to consider the parts of your home search that aren’t related to money, such as areas you’d like to live in and the type of home most suitable for your lifestyle.

Summary:

Home buying process and make your journey as smooth as possible? While our blog offers a comprehensive breakdown of each step and its typical duration, the nuances of buying a home can vary greatly depending on individual circumstances and market conditions. To gain a tailored understanding and expert guidance, we highly recommend reaching out to a professional real estate consultant.