It is true that every home transaction is different, so it is hard to give an accurate time frame for buying a new house. According to HouseLogic.com, however, the average purchase of a new house takes about 50 days from start to finish. Let’s take a look and how they’ve broken down the process:
1. Do Your Homework
Time: 1-14 days
You really should do some critical research to help you figure out what want and what you don’t want in a house so that you can stay on track throughout the process.
You should also get pre-qualified for a loan. This will help you get a better understanding of how much you can afford.
2. Find An Agent
Time: 1-7 days
Finding an agent who suits you is key to the home buying process. You should interview several and choose the one that you feel fits your needs the best.
3. Get Pre-Approved for a Loan
Time: 5-8 business days
Pre-approval is the next step in the loan process and it is an important one because it signals to a seller that you’re a serious buyer. This process is more involved than a pre-qualification, however, so you’ll want to get everything organized and ready early… you will be required to submit a lot of documents. If you are shopping around for a lender, you will want to apply to several in order to find the match. You should try to apply to all possible lenders within 2 weeks to avoid any negative impacts on your credit score.
Time: A few days to a few months
Here’s where things really vary because the variables are endless. You may spend months trying to find the perfect house in the perfect neighborhood, especially if inventory is low. Or, you could find the one on your very first day of looking. But the typical buyer actively searches for 10 to 12 weeks and looks at a median of 10 homes.
5. Make an Offer, Negotiate, and Sign a Contract
Time: 1-7 days
Work with your agent on price, contingencies, and other terms of the deal. Again, the timing of this process varies depending on any counter-offers that are presented.
6. Get Final Mortgage Approval
Time: A few days to 3 weeks
Getting pre-approved for a mortgage doesn’t automatically mean you get a loan on the home you have under contract. The lender has a few other requirements once the home is chosen, such as an inspection and appraisal. And they’ll want to see even more current copies of your financial documents.
From this point on, the steps to buying a house will often overlap, so you’ll have several wheels in motion.
7. Get a Home Inspection
Time: 3-7 days to schedule; 2-3 hours to inspect
As soon as your contract is accepted, contact an inspector to get on their books. The inspection itself will only take two or three hours, but unfortunately, they do get busy and it may be a few days before they can go out to the house.
Once they are at the house, however, things should go fairly quickly. Many inspectors are able to get you the report the same day, but, again, if they are backed up it could take a couple of days.
If the inspection turns up issues, it can cause some delays. This can range from a day or two to renegotiate the contract, or longer, depending on what the issues are.
8. Get a Home Appraisal
Time: Up to 5 days to schedule; a few hours to do the appraisal; up to 5 business days to get the report to the lender
The appraisal is key to getting a mortgage so you are going to want to set up an appraisal as soon as you have a house under contract. And unlike the home inspection, this report goes to the lender instead of you and takes longer because the appraiser has to do additional research on what homes are selling for in the area.
9. Get Title Insurance
Time: 1-3 business days for title check; 2 weeks for insurance policy
Your title company will perform a check on the deeds and other documents to ensure that, when you sign those papers, your new home will be free and clear of any liens or former claims.
10. Get Homeowners Insurance
Time: Up to 2 weeks
Homeowners insurance is something that you will want to shop around for. Compare coverage offerings and rates before making your final decision, but once that decision is made you are going to want to apply right away. Insurance companies will sometimes want to send a representative out to the property in order to assess it, which can take several days. It is also possible that your mortgage company will require additional types of coverage, such as flood insurance, which may add more for another assessment.
11. Arrange for Closing Funds
Time: A few minutes to a few days
Find out from your agent whether you need to bring a cashier’s or certified check or transfer funds digitally. Transfer the funds to the right account, and get your money ready to release.
12. Conduct a Final Walk-Through
Time: 1 hour, the day of or day before closing
This is your chance to make sure the sellers made any agreed-upon repairs and left the property in as good (or better!) condition than the last time you saw it.
13. Close on the House
Time: 1-2 hours to actually sign the paperwork
When it’s time for the main event, bring your photo ID, and stretch your hand muscles; you’ve got a lot of signing to do! But getting the keys? Takes hardly any time at all.
Click here for the full article from houselogic.com
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