How Long Does Home Buying Take?
On average, it typically takes about 30 to 45 days from the time an offer is accepted to the closing of the sale. If you’re not yet at the offer stage and are just starting out, getting prequalified with a home lender, which usually takes about a day (but can be longer for complex scenarios), is the first step. Afterward, the home search can last anywhere from a weekend to several months, depending on individual circumstances.
Home Buying Timeline: Before and After Going Under Contract
The home buying process can be divided into two main parts: before and after going under contract. The first five steps focus on the pre-contract timeline, while the remaining steps are typically completed within a 30-day period after the contract is signed.
The remaining steps after going under contract will be worked on concurrently. Depending on the contract dates, this timeline may vary.
1. Get prequalified for a home loan (1 hour-1 week)
Before you start looking at homes, it’s important to know how much you can afford. Getting prequalified for a home loan is a good way to estimate what you can afford. During the prequalification process, a lender will review your financial information and provide an estimate of how much you may be able to borrow. This can help you narrow down your search to homes that fit your budget.
2. Hire a real estate agent (~1 week)
Hiring a real estate agent is highly recommended when buying a home. Not only are their services typically paid for by the seller, but they can also provide valuable insights into the local housing market and help determine if a home is priced appropriately. They assist with negotiations by analyzing market data, and assessing competition. Most importantly, they’ll help you determine the best offer price and terms to beat out the sometimes dozens of other offers a home may get.
Working with an agent can save you time, money, and stress throughout the home buying process. They identify properties that meet your needs, schedule showings, handle paperwork and legal requirements, and offer guidance and support as needed. It’s important to choose an agent who understands your needs, has experience in your desired area, and a successful track record of home sales.
3. Search for a home (varies widely)
Once you’ve determined your budget and hired an agent, it’s time to start looking for a home. This can take anywhere from a few weeks to several months, depending on the market and your specific needs. Your agent will show you homes that meet your criteria and help you navigate the home buying process.
4. Make an offer on a home (~1 day)
When you find a home you like, you’ll make an offer to the seller. Your agent can help you determine the appropriate offer price and negotiate the terms of the sale. This process can take anywhere from a few hours to several days.
One of the most important ways that your agent can help is by guiding you to avoid overbidding or underbidding on a home, which can be costly mistakes. There’s nothing worse than months of searching for the perfect home only to miss out because your offer wasn’t in the ballpark. Good agents will help formulate a plan for success. For more read how to win your home offers.
5. Negotiate the terms of the sale (1-2 days)
Once you make an offer, the seller may accept it, reject it, or make a counteroffer.
The good homes often get lots of offers worth considering and a good agent will keep in contact with the seller’s agent to see if there is anything needed to put your offer in a winning position.
This often involves negotiating an agreement between seller and buyer that is amiable to both and a counteroffer is sent over to be signed.
6. Get a home inspection (1-2 weeks)
After your offer is accepted, you’ll typically have a certain amount of time to get a home inspection. A home inspector will evaluate the condition of the home and identify any issues that need to be addressed. This process can take anywhere from a few days to a week or more, depending on the availability of the inspector and the complexity of the inspection.
7. Review and sign the inspection resolution agreement (1-2 weeks)
Once the inspection is complete, you’ll review the results and negotiate any repairs or changes to the purchase agreement. Your agent can help you navigate this process and ensure that your interests are protected.
8. Finish the loan related items for final loan approval (1-3 weeks)
Once the purchase agreement is signed, you’ll need to provide any additional documentation required by your lender so they can review for final approval. This can include income verification, tax returns, and other financial information. This process can take several weeks, depending on the complexity of the loan and the documentation required.
9. Get a home appraisal (1-2 weeks)
Your lender will require a home appraisal to determine the value of the home and ensure that it’s worth the amount of the loan. This process can take anywhere from a few days to a week or more, depending on the availability of the appraiser and the complexity of the appraisal. This typically won’t be done until you’ve cleared the Home Inspection Resolution phase to insure you’re moving forward with the purchase.
10. Obtain title insurance from a title company (1-2 weeks)
Before closing on the sale, you’ll need to obtain title insurance. A title company will conduct a title search to ensure that there are no liens or other issues with the title of the property that could impact your ownership. The title company will also issue a title insurance policy that protects you in case any issues are discovered after the sale. This process can take anywhere from a few days to a week or more, depending on the complexity of the title search and any issues that need to be resolved.
11. Close on the sale (1-2 hours)
Once all of the above steps are complete, you’ll be ready to close on the sale. This typically involves a final review of the paperwork, signing of the closing documents, and the transfer of funds. The closing process can take anywhere from an hour to a few hours, depending on the complexity of the transaction and the number of parties involved.
In summary, the home buying process can take several months from start to finish, depending on the market, your needs, and the complexity of the transaction. By understanding the home buying timeline and working closely with your agent, lender, and other professionals, you can navigate the process with confidence and achieve your dream of owning a home.
