How long does it take to buy a house?

The answer to how long it takes to buy a house can vary based on a buyer’s unique situation and preferences. But this process can be made much simpler with the right preparation and expectations.

We’ll take you through five main steps to purchasing a home, and help you determine your home buying timeline.

Step 1. Get preapproved for a mortgage

Homeowner hopefuls often will begin with the house hunting process first. But the real first step in the home buying process should be mortgage preapproval.

Home buyers who are able to purchase a home with cash are excluded from this step, because they don’t need a home loan.

But if you are planning to purchase a home with a mortgage, you need to get preapproved.

Preapproval confirms how much home you can afford, and proves to real estate agents and sellers that you are a serious buyer.

To get preapproved, you will connect with a trusted mortgage lender who will verify your financial information, including the following:

Income
Employment history
Credit history
Assets
Debts

The lender will ask for documentation as proof to determine your interest rate and how much they are able to loan you.

How long does it take to get preapproved?

Prior to preapproval, potential buyers should take stock of their finances to make sure they can get the best rate and loan options.

This includes taking a look at your credit history, saving for a down payment, and paying down high-interest debts.

Some borrowers choose to visit a loan officer for preapproval to get an idea of how much home they can afford. Often, they’ll take another six months to a year to improve their finances before applying again.

Once you’re ready for preapproval, though, plan for this process to take a few days to several days to complete, depending on the lender and how quickly you get them the documentation they require.

Ready To Take Your Next Step?

Step 2: Search for a home

Once you have your preapproval letter, you can begin the home search.

Your preapproval will help you and your real estate agent narrow down the search because you know what you’re able to afford.

Research ahead of time on your ideal location, home type, and a trustworthy agent to make the process much smoother.

How long does it take to search for a home?

House hunting often is the step that takes the longest.

Depending on your home “must-haves,” and the overall market in your search area, it can take anywhere from a few months to a year or more to find the right home.

However, because you have taken the right steps up to this point, once you find “the one,” you will be ready to quickly make an offer.

Step 3: Make an offer

When you find the right home, your real estate agent will help you craft the perfect offer that is in line with other homes in the area and include any requested contingencies.

In a hot housing market, the real estate agent will probably suggest the offer exceeds the asking price and leaves out contingencies, since these factors will make your offer more appealing to a seller.

How long does it take to make an offer on a house?

Making an offer often only takes a few days, but negotiations, bidding wars, and counteroffers can make this step take longer.

Step 4: Prepare to close on your loan

After your offer is accepted and the purchase agreement is signed, you can move through the closing process.

During the closing process, you and the lender are completing the mortgage application, which includes an appraisal, the loan underwriting, and a home inspection.

Appraisal

An appraisal typically is ordered by the lender, and is an assessment of the home’s value to make sure it matches the price.

Underwriting

During the underwriting process, the lender will once again verify your income, debt, and assets to make sure you qualify for final approval.

It’s important that after your initial preapproval, you maintain your income, employment, and overall finances.

Any changes not discussed with your lender can affect your approval.

Home inspection

A home inspection gives you a heads up on anything that needs to be repaired or replaced.

If it turns out the home needs much more work than expected, you still can walk away from it. But at the very least, it allows you to budget for these expenses.

How long does the closing process take?

It can take a month or two to move through the closing process, but it depends on your loan type, the length of time it takes to get reports back from the appraiser and inspector, and how quickly you respond to any additional information your lender needs.

Step 5: Close on your loan

Three days before closing, you’ll receive your closing disclosure outlining the terms of your loan and your closing costs.

Once three days have passed, your lender will schedule a closing meeting.

Twenty-four hours before closing, buyers are encouraged to do a final walkthrough of the home to make sure everything is in working order.

Then, it’s finally time to close.

You can sign your papers, pay your down payment and closing costs, and the home is officially yours!

How long does it take to close on a loan?

It can take about three days to a week to officially close, depending on when the lender is able to schedule the meeting after your required three days to read the closing disclosure.