How Long Does it Take to Buy a Home?

If you are considering a home purchase, you probably want to know how long the whole process will take. Unfortunately, there is no easy answer to this question. The time it takes to buy a home varies in each situation.  The typical time it takes to close on a home loan once you’re under contract is usually 30 to 45 days. However, from financial preparation and finding the right home, to getting under contract and completing the closing process, it tends to take a lot longer. Here’s a closer look at some of the stages and steps in the home buying process.

Building Credit & Saving

Before you purchase a home, you might need to spend some time cleaning up your credit or saving for a down payment in order to qualify for a loan. You need to have the necessary credit and assets, or you won’t be able to secure a mortgage. Correcting mistakes on your credit report and reducing your debt are both effective ways to improve your credit, but it can take a while to see results. Learn more about the steps you can take to improve your credit here. It can also take a considerable amount of time to save up for a down payment, especially for first-time home buyers. Plan ahead and start building up your credit and saving for a down payment as soon as possible.

Finding the right home

Finding the right home is no easy task. According to the National Association of Realtors, the typical homebuyer searched for 12 weeks and viewed ten homes before getting under contract. It may take you longer, or shorter, to find your perfect home depending on the housing market in your area and what you can afford. If you are a first-time home buyer, it can be difficult to balance needs and wants when looking for a home. You may not be able to afford your dream house yet, so don’t write off a home too quickly if it doesn’t meet all of the criteria on your list.

Loan Processing

After you’ve found the right home and the lender has received a copy of the purchase agreement, work will start on getting the property appraised, and an underwriter will start reviewing all of your financial information. Unless you are trying to purchase a short sale, 30 to 45 days is a good estimate of the time it typically takes from contract to close. However, it’s common for underwriters to require additional documents after they start examining your paperwork, which can slow things down. You can help speed the process along by returning any requested documents as quickly as possible. Another way to help speed up the closing process is to get pre-approved for a loan in advance. With a pre-approval, certain items are verified upfront before the purchase contract is signed, which moves the borrower a few steps closer to closing.