If you’re looking to buy a new home, you probably want to know how long the process takes from start to finish. There are many steps involved in buying a home, and knowing the timeframes for each step can help you plan out your home buying timeline so that you have ample time to prepare. Here’s what you need to know about closing on a home.
Preparing for homeownership
This Is How Long It Takes to Close on a Home
Closing on a home is a huge milestone, and one that takes preparation. Before you start the process, it’s important to understand how long it will take and what you’ll need to do. Here’s a step-by-step guide to help you close on your new home.
- Get pre-approved for a mortgage: This is an important first step in the home buying process.
The home buying process broken down
It can take anywhere from 30 to 45 days to close on a home, depending on the type of loan you’re using, the lender you’re working with, and other factors. Here’s a breakdown of what you can expect during the process:
The first step is finding a home and making an offer. Once your offer is accepted, it’s time to get pre-approved for a mortgage. This usually takes around two weeks. Then, it’s time to schedule a home inspection and appraisal.
A timeline of what happens when you buy a home
The home-buying process usually starts with finding a real estate agent and getting pre-approved for a mortgage. Once you’ve found a home you want to buy, your agent will help you write an offer. If the seller accepts your offer, you’ll enter into escrow. Escrow is when the buyer deposits money with a third party (usually the title company) and the seller signs over the deed to the property.
What Happens When You First Look at Homes
You’ve finally saved up enough for a down payment and you’re ready to start looking at homes. The first step is finding a real estate agent. Once you’ve found a few homes you like, your agent will help you make an offer. If the seller accepts your offer, then it’s time to start the loan process. The loan process can take anywhere from 30-60 days. Once the loan is approved, you’ll schedule a closing date with the seller.
This date will allow you enough time to get everything in order: getting the house appraised, buying homeowner’s insurance, and getting utilities set up. Depending on how many of these things need to be done before the closing day, this could add a few weeks or months onto your timeline.
What Happens After You Make an Offer
After you and the seller have agreed on a price, your real estate agent will help you write up a purchase offer, which is a formal document that states your intent to buy the home. Once the offer is submitted, the seller has three days to accept, reject, or counter your offer.
If they accept it, congrats! You’re one step closer to owning your new home. Your mortgage lender will order an appraisal from a professional appraiser and this process can take about 10-14 days.
The appraisal evaluates how much the property is worth so the bank can determine how much money to lend you for your mortgage loan. Next, you’ll need to get an inspection of the property, which usually takes between two and four hours depending on what needs inspecting.
What Happens During Your Closing Date
Closing day is when the home purchase is finalized. All the paperwork is signed, money changes hands, and you get the keys to your new home.
The process usually takes around 30-45 days from the time you have an accepted offer until closing day.
During this time, there are a few key things that happen:
- A loan officer will work with you to get pre-approved for a mortgage.
- You’ll find a real estate agent to help you look at houses.
- You’ll put in an offer on a house (hopefully!)
- If the seller accepts your offer, they’ll need to do some inspections or repairs before closing can happen.
- Once everything checks out, you’re all set!
What Happens If You’re Selling Your Home
Selling your home can be a lengthy and complicated process. If you’re not prepared for it, you could end up making some costly mistakes. Here’s what you need to know about selling your home.
The first thing you need to do is find a real estate agent. They will help you determine the right price for your home and list it on the market. Once you have an offer, there are a few more steps that need to be taken before the sale is final.
