If you’re ready to purchase a new home, you may be wondering just how long the process will take. After all, it’s possible you need to figure out some of the logistics of your move.
For example, you may need to decide whether to ask your landlord for an extension on your lease. Or, perhaps you need to consider your child’s school schedule or how much notice to give your employer. With this in mind, it’s smart to learn and understand how long buying a house usually takes.
The timeline of any home sale can vary based on a broad range of factors. However, each step can be fairly predictable on its own.
Key Takeaways
- The home-buying process typically takes between two and six months, depending on factors like credit preparation, finding a home, and closing procedures.
- Key steps include preparing your credit, getting preapproved for a mortgage, finding a home, and negotiating an offer, followed by the closing process which can take 30–50 days.
- It’s important to keep your credit in good shape and save for a down payment to improve your chances of securing the home of your dreams.
How Long It Takes to Buy a House
Here’s how much time you should expect to wait for each step of your home sale as you plan out the next important steps in your life.
1. Preparing Your Credit for Homeownership: (0–12 Weeks)
Your credit score is one of the biggest factors mortgage lenders consider when deciding if you qualify for a loan and what rate you’ll receive. While each lender sets its own standards, having a good credit score gives you a better chance of securing a loan with a competitive interest rate.
If your credit is strong, you may not need much preparation. But if it needs work, improving your credit now can save you money in the long run. Here are a few steps to consider:
Review Your Credit Report for Accuracy
Request a free credit report from each of the three major bureaus—Experian, Equifax, and TransUnion—through AnnualCreditReport.com. Look for any mistakes that could be lowering your credit score, such as outdated balances or incorrect late payments. If you spot an error, follow the bureau’s dispute process to have it corrected.
Pay Down Balances to Lower Your Credit Utilization
Credit utilization, or the amount of credit you’re using compared to your total limit, plays a significant role in your score. Aim to keep your utilization below 30%. Paying down credit card balances or other high-interest debt can help improve your credit score and make you a more appealing borrower.
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Set Up Autopay to Avoid Missed Payments
Payment history is one of the most significant factors in credit scoring. Setting up autopay ensures you won’t miss a due date, helping to keep your credit score on track. Even one late payment can impact your score, so it’s worth taking steps to prevent this.
Why Credit Matters for Your Mortgage Rate
The stronger your credit, the better the mortgage rate you’re likely to get. For example, a FICO score of 740 or higher can help you qualify for the lowest available rates, which can save you thousands over the life of the loan. Preparing your credit before you apply is a valuable way to make the home-buying process more affordable.
2. Get Preapproved for a Mortgage: (1–2 Days)
Once your credit is in good shape, the next step is mortgage preapproval. This lets you know how much you can borrow and shows sellers you’re a serious buyer—giving you an edge over others who haven’t taken this step.
Why Preapproval Matters
A mortgage preapproval is a lender’s commitment to lend you a specific amount based on a review of your credit and financial details. This not only helps you set a realistic price range for your home search but also strengthens your position when making an offer, as sellers are more likely to favor preapproved buyers.
Prequalification vs. Preapproval
While prequalification offers a rough idea of your budget, preapproval is a more detailed process where lenders verify your finances. Preapproval is necessary to move forward with a purchase and shows sellers you’re ready to buy.
Shopping Around for the Best Rate
Different lenders offer different terms, so it’s worth comparing options to find the best rate. Some websites allow you to enter your information once to receive multiple quotes, making it easy to compare interest rates and fees.
What You’ll Need for Preapproval
To get preapproved, you’ll need to provide:
- At least one month of pay stubs
- Employment information from the past two years
- Two years of W-2s
- One or two years of tax returns
- Three months of bank statements
- Additional information if you’re self-employed
Once you submit these documents, the lender will pull your credit report, which can temporarily lower your score. The preapproval process can take anywhere from a day to several weeks, so having these documents ready can speed things up.
With your preapproval letter in hand, you’ll be well-prepared to begin your home search, confident in your budget and borrowing power.
3. Finding a Home and Getting an Accepted Offer: Varies
With a mortgage preapproval in hand and a clear idea of your budget, it’s time to start the search for your new home. The length of this step varies widely—you might find the right home on day one, or it could take months to locate a place that fits your needs.
Working with a Real Estate Agent
A real estate agent can be a valuable resource during your home search. They help you find homes within your price range, schedule viewings, and provide guidance on what to look for in each property. Having an agent’s expertise can make the process smoother and may even help you spot potential issues before making an offer.
Making an Offer
Once you find a home you’d like to buy, your agent can draft an offer that outlines your price and any terms. This stage can also take time, depending on how quickly the seller responds and if counteroffers come into play. Negotiations might go back and forth, with each party adjusting terms, which can extend the process by several days or even weeks.
Finding and making an offer on a home can be one of the most variable parts of buying a house, but being prepared with a preapproval and a clear budget can help keep the process on track.
4. Closing on Your Home: (30–50 Days)
Once you and the seller have agreed on the terms, the final stage—closing—begins. This step requires some paperwork and coordination but brings you one step closer to owning your new home.
Additional Financial Documentation
Your lender may need updated financial documents, like recent bank statements or pay stubs, to confirm you’re still in the financial position that qualified you for the mortgage preapproval. Responding quickly to any document requests can help keep the process moving.
Schedule a Home Inspection
It’s common to hire a home inspector during this phase. The inspection, which typically takes a few hours, allows you to address any potential issues before finalizing the sale. After the inspection, you and the seller may negotiate on repairs or any needed adjustments, which could add a few extra days to the timeline.
Prepare for Final Closing Steps
Closing usually takes around a month but can be quicker or longer depending on any last-minute requests from your lender. Staying responsive can help prevent unnecessary delays and keep everything on track.
When closing day arrives, you’ll meet with all relevant parties, which may include real estate agents, the title company, a closing agent, and occasionally a representative from the lender. You’ll sign the necessary documents, settle closing costs, and provide your down payment.
Final Steps to Receive Your Keys
With all documents signed and payments made, the property officially becomes yours. Congratulations! At this point, you’ll receive the keys and can start planning your move into your new home.
Bottom Line
The details above describe what usually happens when someone purchases a home. However, there are many variables that could throw these timelines out of whack. You may find you have trouble qualifying for a mortgage altogether, for example. Or maybe you spend months or years finding a home you like!
Whatever hurdles you encounter, make sure to keep your credit in good shape and continue saving for a down payment. The better financial shape you’re in, the better chance you have at winding up with the home of your dreams.
Frequently Asked Questions
How long does it take to buy a house?
Generally, it takes between two and six months to purchase a house. This timeline may vary depending on the complexity of the transaction and the availability of financing.
What factors can affect the timeline for buying a house?
Factors that can affect the timeline for buying a house include:
- The availability of financing
- The complexity of the transaction
- The number of buyers in the real estate market
- The availability of properties
What are the steps involved in buying a house?
The steps involved in buying a house include:
- Researching the housing market
- Finding a real estate agent
- Getting preapproved for a mortgage
- Making an offer and negotiating
- Securing financing
- Closing on the purchase.
How can I get preapproved for a mortgage?
To get preapproved for a mortgage, you will need to provide documentation such as your income and employment information and your credit report. Your lender will then review your information and provide you with a pre-approval letter.
What is the difference between pre-qualifying and pre-approving for a mortgage?
Pre-qualifying for a mortgage involves providing information to a lender, who then estimates how much you can afford to borrow. Pre-approval involves providing documents to a lender, who then verifies your information and issues a letter of pre-approval that you can use when making an offer on a house.
How can I find a real estate agent?
You can find a real estate agent by asking friends, family, and colleagues for recommendations, or by searching online. You can also look for an agent through the National Association of Realtors or by visiting your local real estate board.
How long does the underwriting process take?
The underwriting process can take anywhere from a few days to a few weeks. The timeline depends largely on the complexity of the loan and the number of documents the lender needs to review.
What is a closing?
A closing is the last step in the home-buying process. It is when the transfer of ownership is finalized and the buyer and seller sign the closing documents. At the closing, the buyer pays the remaining balance of the purchase price and the deed is transferred from the seller to the buyer.
What documents should I bring to the closing?
At the closing, you will typically need to provide a valid photo ID, proof of homeowner’s insurance, a copy of the purchase agreement, and a certified or cashier’s check for the remaining balance of the purchase price.
Should I use a mortgage broker?
Deciding whether to use a mortgage broker largely depends on your unique requirements and preferences. By engaging a mortgage broker, you stand to gain access to a broader range of lenders, thus increasing the likelihood of securing the best mortgage rates and terms.
In addition to providing access to lenders, mortgage brokers can offer valuable guidance and advice throughout the process, which can be especially beneficial if you are unfamiliar with the ins and outs of securing a mortgage. However, it’s worth noting that mortgage brokers do charge a fee for their services, which can add to the overall cost of obtaining a mortgage. Ultimately, it’s up to you to decide whether the benefit is worth the cost.
Can I buy a house with cash?
Yes, you can buy a house with cash. However, the seller may still request evidence of your available funds.
The seller may request to see bank statements or other financial documents that demonstrate that you have the necessary funds to complete the transaction. This process can provide the seller with peace of mind that the sale will go smoothly. It can also help to prevent any misunderstandings or disputes from arising during the purchasing process.