The Homebuying Timeline
RH Business Marketing Solutions
Becoming a homeowner is an undeniably exciting life event. While you’re probably eager to move into your new home as soon as possible, purchasing a house is a major transaction, and the process can’t be rushed.
Typically, buying a home takes four to six months to complete, but the timeline can vary greatly due to numerous factors. Learn more about homebuying and what to expect throughout the process here.
Starting the Process
Unless you’ll be paying with cash, getting mortgage pre-approval is the first step in the homebuying process, before contacting a realtor and touring homes.
Choose a reputable lender and have your paperwork ready to expedite the pre-approval process. The lender will likely ask for proof of employment, W-2 forms, asset statements, bank statements, federal tax returns, and recent pay stubs. Most lenders need a few days to a week to verify your assets and preapprove a mortgage.
An FHA loan, offered by the Federal Housing Administration (FHA), is another option if you encounter challenges when seeking preapproval from a lender.
Shop for Homes
It’s time to meet with a realtor and browse real estate listings. It’s critical to relay your price range and interests to the realtor; this will help him or her locate homes that suit your preferences.
When you find a home that interests you, your realtor can schedule a tour. It’s common to tour numerous homes over the course of roughly two months before locating the perfect match.
Place Your Offer
The homebuying process is a competitive one. When you find your dream home, someone else may want to purchase it too. Your realtor will help you make a reasonable offer on the house, and the seller may come back with a counteroffer. It’s common practice for the seller to take 24 to 48 hours to accept the offer, reject it, or provide a counteroffer.
Your realtor may suggest putting down earnest money, similar to a deposit, to take the house off the market. The earnest money can later be used for closing costs or part of the down payment. Once the seller accepts the offer, the house will go under contract.
Inspection and Appraisal
A home appraisal determines the value of the home based on several factors, such as the local housing market, home amenities, square footage, and more. The sale continues as-is as long as the home’s value is equal to or higher than the sale price. If the appraisal comes back lower than the sale price, you have another chance to negotiate with the seller.
The home inspection occurs around the same time as the appraisal. It’s not required, but most realtors will recommend having a home inspector assess the state of the interior and exterior of the home. The home inspection results may indicate that repairs need to be made. You can negotiate with the seller, asking to lower the sale price or fix the issue.
Loan Approval and Closing
The final steps in the homebuying process are getting your loan approved and closing on the home. You’ll agree to the terms and finalize your loan. On closing day, you'll meet with the seller, sign the final paperwork, transfer any necessary payments, and receive the keys to your new home.
The homebuying journey can be time-consuming and emotionally exhausting, but understanding the process can help you move through it more smoothly. To learn more about the homebuying timeline, check out the accompanying resource.
Author bio: With over 20 years of experience in the mortgage industry, team leader Sherry Riano exudes a deep passion for helping families in North Carolina, South Carolina, Tennessee, Virginia, Florida and Alabama financially obtain their dream home. Ensuring its clients and business partners are top priority, The Sherry Riano Team consistently takes into consideration each customer’s needs and goals to build a lifelong relationship. With a specialized approach to self-employed borrowers, first-time homebuyers, jumbo loans and VA loans, The Sherry Riano Team has knowledgeable advocates for any customer with which it partners.