How long does it take to buy a house?

This is a sponsored post written by me on behalf of Money Under 30 for Credit Karma Home

As a serial tenant, I had a fair share of complex landlords and less-than-lucrative leases. Some of my recent rental problems include not getting a refund for costly plumbing repairs and listening to an hour-long lecture on why wallpapering isn’t allowed on my walls.

Needless to say, I can’t wait to have my own place where I can do whatever I want without having to butt the homeowner every step of the way.

But how long does it take to buy a house?

Well, here’s a complete timeline based on my research as well as conversations I’ve had with mortgage and real estate experts. I’ve also included some tips to speed up the process so you can finally kiss your rental apartments goodbye.

Buying a Home: Full Schedule

1. Pre-approval for mortgage: 24-48 hours.

Okay, I know that when dealing with financial aspects of buying a home Not nearly as much fun as house hunting, but it should be the first step in the process.

Why?

Because it will give you a realistic idea of ​​what Your budget will look.

Read more: How Much Home Can You Afford?

Brendan McKay, Broker Advocacy’s President Association of Independent Mortgage Experts (AIME), also adds,

“Being pre-approved means you can basically go out and look at houses and do something about it.”

In other words, you can make an offer faster.

When pre-approving financing, you want to choose a lender who will provide you best terms and rates for your financial situation. If you are unsure where to start, you can take a look at websites such as Credit Karmaso you can compare rates from top lenders and get a quote.

V pre-approval application It only takes a few minutes, and McKay says you can get a response within 24 hours of submitting your application.

For pre-approval, you need the following:

• A copy or image of your ID.
• Copies of the last two pay stubs.
• Your social security number.
• Tax returns for the last two years.
• Account statements for 60 days.
• Asset account statements (retirement accounts, investment accounts, etc.).

2. Finding a home: 4.5 months on average.

A Recent report from Zillow showed that the average American spends 4.5 months inspecting real estate and attends more than two open house days. before finding “that”.

When looking for real estate Jessica Lutz, VP of Demography and Behavioral Research National Association of Realtors (NAR), says it’s best look for an expert to help you through the process instead of trying to find a home on your own.

“A local real estate agent or a broker can help you find homes that are overlooked, or even areas where homes might be affordable or just need a little DIY repair. ”

Read more: How to find the best real estate agent to buy or sell

3. Registration of the offer: 1-3 days (in response to the seller’s answer).

Once you’ve decided on your home, it’s time to propose. The offer letter is usually prepared by your real estate agent and includes the terms of sale, the amount you are willing to pay for the property, and the target closing date.

Although most sellers respond within 72 hours of making an offer, it may take longer if they receive multiple offers, which is not uncommon, especially if you are in a low-stock market. …

Lautz says first-time buyers usually need to place bids on multiple properties before a contract is accepted.

“The process can be frustrating, but having patience and an expert on their side to negotiate terms is essential.”

If your offer is accepted, you will enter into a contract and you will have to postpone deposit, which is “the guarantee of good faith.” This is usually between 1% and 2% of the purchase price and is later applied to your mortgage as soon as it is settled.

4. Inspection of the house: 2-3 hours – a couple of days to receive the report.

The next step after entering into an agreement with the seller is planning a home inspection. This ensures that the home is in a livable condition and that there are no major flaws such as structural damage.

A home checkup usually takes several hours, depending on square meters at home, after which you will receive a report with recommendations (if any) for the necessary repairs.

If you find any problems, you can always negotiate with the seller to fix them before moving, or you can also ask for a price cut if you want to repair yourself.

5. Completion of the loan application and the closure of the property: from 30 to 60 days.

After finding a home, completing a loan application and property closure this is the most time consuming part of the home buying process. AIME’s McKay says:

“Pre-approval basically covers everything related to the buyer, his finances and loans. Nothing about real estate can start before the contract is signed. “

To fill out a loan application, you need to provide a sales contract and sales details. Then the lender will have house appraised to determine its true value; and to initiate the underwriting process and verify the correctness of the title of the property. McKay adds:

“Evaluation is probably the slowest part of the process. Right now, there are many areas where millions of people are moving, and there are few appraisers. “

The fastest deadline by which you can fill out an application and close a loan is three weeks. Anyway, data from ICE Mortgage Technology suggests that the average person has to wait 51 days to close a regular purchase loan… It is also worth noting that if you are applying for FHA or VA loans, this period can stretch up to 54 and 56 days, respectively.

Tips to Speed ​​Up the Home Buying Process

Make sure your finances are in order

Before looking for a home, make sure both of your credit rating and yours debt to income ratio (DTI) cut back as these are the two most important factors in determining if you are approved for funding.

Read more: Do you want to buy a house? Here’s how to create your loan first

Typically, you will need a credit rating of at least 620 to qualify for a regular loan, and 580 for government-backed loans such as VA and FHA. For DTI, lenders prefer you have DTI 43% or less…

Prepare all documents and respond quickly

“The biggest delay in the mortgage loan process is customer response time,” McKay says. That is why he recommends that you collect all the necessary documents in advance and have them with you so that you can send them as soon as the lender requires.

Plus, keep both your real estate agent and lender on speed dial so you can get in touch with them every step of the way.

Stay Away From Short Selling Objects

Short sales happen when sellers in distress sell property for less than they owe on their mortgage to avoid it. foreclosure…

While this may be beneficial to you since you can buy the property at a discounted price, these sales take longer than usual as the original lender has to agree on the sale, which means they will be losing money.

Make a money offer

Okay, listen to me. I know that many people (including myself) do not have the money in advance to buy a house. But many sellers will accept your offer faster if you have cash, because as you know, money is king…

Plus, you don’t have to wait for the bank to sign and process your mortgage application, saving you time.

Summary

Buying a home can be a lengthy process, but it’s worth the wait. Not only will you have a place to call yours, but you will also have a long-term investment that can help you accumulate wealth in the future.

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