Are you getting ready to buy a home? Before you embark on one of the most exciting milestones of your life, you should consider if you are fully prepared for the road ahead.
While preparation for buying a home includes making decisions and having discussions, it also requires understanding how long the journey can be. To help you stay on track, we’ll discuss how long the homebuying process takes before you can finally become a homeowner.
Buying a Home From Start to Finish
Buying a home is a process that takes time—it’s not something that happens overnight or even in just a week! If you’re ready to press on the pedal to begin this financial trip, then buckle up. Planning is just as important as officially getting your home, and we want to ensure you get through the process with as minimal obstacles as possible.
According to recent data, the average time to buy a home, from searching, to making offers, to closing and getting your keys, is around 44 days, though we’ve seen loans close in as little as 10 days. While timelines can vary depending on internal and external circumstances, such as the market, the home you’re purchasing, and your loan type, you need to prepare for a process that typically spans several months from start to finish. Since the entire time it takes to buy is merely an estimate, it’s best to break the process into parts, starting with the pre-process experience.
Before the Mortgage Process
Before entering the mortgage process, you’ll need to get pre-approved, find the right home, and have your offer accepted. This stage can take a few weeks to several months, depending on your preparedness and other factors influencing the homebuying journey.
Getting Pre-Approved
Many think searching for a house is the first step of homebuying, but getting pre-approved holds more priority. Having a pre-approval in hand not only defines your budget but also signals to sellers that you’re a serious buyer, speeding up the overall process. The average time to get pre-approved for a mortgage is 1-3 days if you’ve already gathered the necessary documents, such as proof of income, credit history, and bank statements. However, it may take longer if we need to request additional documentation or if we need additional time to verify your employment and finances.
Searching for a Home
Usually known as everyone’s favorite part of the process, the house search can last anywhere from a week to several months. Factors like your availability to tour homes, the competitiveness of the market, and how specific your requirements are can impact the timeline. If you’re in a hot market with limited inventory, finding a home that checks all your boxes may take longer. On the other hand, being flexible about certain preferences can shorten this phase.
Making an Offer
Once you find the right home, making an offer can be quick, often just a day or two if your real estate agent is on top of it. However, negotiations can stretch this stage to a week or more, especially if competing offers or contingencies are involved. This is where your pre-approval letter comes in handy, because it helps back up your offers and gives the seller peace of mind for a timely and efficient closing. Sellers may take time to review your offer and respond, and back-and-forth discussions over price, terms, or repairs can add extra days to the process.
During the Mortgage Process
Now that your offer has been accepted, you’re halfway to becoming a homeowner! The next steps in the journey include the mortgage process, which involves processing your loan application, underwriting to ensure all requirements are met, and finally, funding and closing.
Processing
Processing is a stage in the mortgage process where all your financial documentation is reviewed, verified, and prepared for underwriting. The initial processing review phase typically lasts a few days, during which your lender confirms details like income, assets, and creditworthiness. The file will remain in processing until the underwriter issues a “final approval”, during this time (which may take a few weeks) the loan processor will gather additional documents, order the appraisal, and ensure all required information is accurate and complete.
Underwriting
Underwriting involves a detailed review of the buyer’s financial information to ensure they meet the lender’s requirements. This process can take anywhere from a few days to several weeks, depending on the complexity of the application and how quickly the required documents are provided. Once all buyer and third-party documents are received, the underwriter will issue a “final approval” permitting all parties to prepare for closing.
Funding & Closing
Funding and closing are the final steps, where ownership is officially transferred. This process typically takes a day but requires preparation in advance to ensure all legal and financial documents are accurate. Scheduling the signing appointment, transferring closing funds, and recording the deed can add a few extra days, making this stage the completion of the homebuying journey.
Tips to Stay on Track
Staying organized and proactive can significantly shorten the time it takes to buy a home. Start by gathering all necessary financial documents, like pay stubs, tax returns, and bank statements. Compiling these beforehand will speed up pre-approval and underwriting. Working with experienced professionals, like a real estate agent and an RWM loan officer, can also help you avoid delays. We will guide you through each step, ensure you meet deadlines, and address any potential issues quickly. We also have a Fluid App that makes it easy to upload your documents wherever you are.
Another important tip is to remain flexible and responsive. Be prepared to act quickly when opportunities arise, whether it’s scheduling a home tour, providing documents, or responding to requests from your lender. Staying in regular communication with all parties involved, such as your agent, lender, and escrow officer, helps prevent misunderstandings and keeps things moving. The more engaged you are in the process, the smoother and quicker it will be.
Get a Head Start on Your Dream Home
While the timeline to buy a home can vary, understanding the steps and staying proactive can make the process smoother and more efficient. From getting pre-approved to closing, each stage is essential in turning your homeownership dream into reality. By staying organized, working closely with professionals, and being prepared for potential delays, you’ll be well-equipped to navigate the journey. With the right approach, your new home is closer than you think!
Are affordability challenges keeping you on the sidelines of the homebuying journey? Don’t let them hold you back—down payment assistance programs are available to help reduce upfront costs. With our Down Payment Resource Tool, you can easily find programs tailored to your needs and take the first step toward owning your dream home!
