When you are considering buying a new home, you are probably wondering about how much time it takes. Overall speaking, shopping for a new home may take between 4 and 5 months and an additional 1 to 2 months to close the deal. However, it is important to keep in mind that this is only an average. After all, between finding the home you want in more or less time, your financial conditions, and even the time of the year are factors that also play a role.
The truth is that buying a new home is a very big step and it is a decision that needs time to be made.
The Different Steps To Buy A House
If you are a first-time buyer and you just decided it is time to buy your first house, you need to understand that the process includes many different steps. Some steps may take longer than others but you need to go through all of them.
#1: Searching For The House:
The very first thing you need to know is how big or small you want your new house to be. Then, you need to consider only the areas that interest you. Maybe you want a house located near your office, one that has good schools nearby, or one that has a small garden in the front.
This is the step where you establish your criteria and that also includes visiting some houses as well. This step can take a couple of months and it all depends on whether you are flexible with your criteria or not.
#2: Getting Your Offer Accepted:
As soon as you find the house that you want, you need to make an offer on it. However, this doesn’t mean that you will actually buy the house. After all, there may be other potential buyers interested and the price may go up.
It’s important to keep in mind that if you are in a buyer’s market, this means that you will have more competition for the house. So, you may need to make a second or a third offer for the house to get it accepted.
#3: Financing Options And Pre-Approval:
In case you can buy your home upfront, this step will be skipped. However, for most people, financing is the only way to go when buying a new house. So, you need to know that you need to make sure that you get the financing you need. To do so you need to get pre-approved as well as you should have the loan underwriting as well as the appraisal completed.
#4: Closing The Deal:
Closing the deal may take between 1 or 2 months. During this step, you will need to ensure that your mortgage company processes your process as well as organizes the appraisal of the house. You may be required to deliver some more documents. In this step, your title attorneys will need to check if the house is clear so that it can be transferred to your name on the closing day. Finally, you also need to have your home insurance in place.
Speeding Up The Process
When you just can’t wait to finally buy a new house and start moving, you will be glad to know that there are certain things you can do to speed up the whole process.
As you can imagine, if you have the money to pay for the house at your disposal, this will avoid a lot of bureaucracy and time spent negotiating with the lender and getting your loan pre-approved. If this is your case, then you can expect to have your contract closed between 14 to 30 days.
In case you do need a mortgage (like most people do), there are other things that you can do to make the process faster:
#1: Get Your Mortgage Pre-Approved:
One of the steps that may take you more time when you are buying a new home is to get a mortgage pre-approved. So, you can definitely save up some time here if you take care of this paperwork right when you decide to buy a home or when you start viewing them.
In case you are interested in getting pre-approved, you will need bank statements, tax returns, and pay stubs. Keep in mind that most pre-approval letters only last between 60 to 90 days. After this period, you will need to get pre-approved again.
#2: Gather All The Important Paperwork You Need: Gathering paperwork can take a lot of time. In case you already asked to get pre-approved by a mortgage company, then you already have most of the papers that you need. So, you just need to ensure that you keep them all together in the same place.
#3: Find A Professional Real Estate Agent:
When you want to buy your home quickly, then your best option is to hire a professional real estate agent to knows the area. Especially if you are a first-time buyer, you should seek the help of a professional to help you with all the subjects related to buying a home.
Overall speaking, a good real estate agent will determine what you are looking for, schedule visits to the houses that fit your criteria, and they will walk you through the entire process. Between helping you with your mortgage to making an offer on your behalf, negotiating with the seller, taking care of the inspections, and finally taking care of the closing day.
#4: Have All The Close Funds Ready:
As you know, the closing day has some closing costs associated. So, you need to ensure that you have the funds to cover these costs on your bank account on the closing day.
Buying a home is a big step and it shouldn’t be taken lightly. Overall speaking, you will be better off by hiring a professional real estate agent who can guide you through the entire process, answer all your questions, and help you find the perfect house for you. Besides, you will also save a lot of time and headaches in the way.