How Long It Takes To End a Home-buying Deal?

For all those who are planning to buy their new home, must be very eager to have a possession. Are you one of them? Well, here you will find the answer to your major query. Read on.

Buying your own home is surely one of the most challenging yet happening tasks, isn’t it? You have been dreaming for it throughout your life. And certainly, when you get into the process of buying, you want it to end up as soon as possible. All you want is to get a good deal and step into your new abode with lots of dreams.

Well, this is the natural reaction of any home-buyer, and therefore the most commonly asked question is - How long will it take to buy a house?

In case, you are planning to buy your first home and are wondering what to expect in terms of the time frame, here is a little help. Before you make any judgment about the total time, it is advised to first go through the entire buying scenario. You need to be aware of all those things you are going to encounter during this process. Let’s have a closer look at variables which affect the time frame of your home buying process.

Pre-Approval for a Loan

When you visit a lender to find out how much of a loan you can get, before you have started shopping for a house, is termed as mortgage pre-approval. In such as case, the lender will examine your current debts, income, and other aspects. Analysing all the aspects carefully, he will give you a maximum loan amount. This can take a few days to a week. However, this can stretch a bit longer.

Search for a Real Estate Agent

This is one of the most essential things you need to consider when buying a property. And yes, how long it takes to buy a home will also depend on your real estate agent. In case, you get a real go-getter, you will be lucky enough to make a fine deal in less time. On the other hand, there are few real estate agents who can make the process longer. So, invest your time in finding a good agent, and you will save your efforts and overall time, in the longer run.

Negotiation

Generally, real estate purchase serves with a 24- or 48-hour window. This time is used by the sellers to evaluate the offer, and it is the time in which they decide whether to accept the offer or not. In case, they deny to it, there are good chances of a counteroffer. This is referred to be the negotiating stage which can typically take around a week and can stretch longer due to a lot of back-and-forths negotiating.

Mortgage Underwriting and Approval

For those, who are dependent on a mortgage loan to finance, how long the mortgage company takes, will affect how long it takes to buy a home. So, once you have signed a contract, your loan application file goes to the underwriter or the underwriting department. Then, the underwriter will carefully examine, ensure it meets all of the lender's requirements, and check for any secondary requirements like FHA or Freddie Mac.

Escrow and Closing

The time frame between acceptance and closing is referred to as escrow and it might take anywhere from 30 to 60 days. But it can be longer, depending on the buyer and seller negotiation on the settlement/closing date.

So, in all, the entire process can take anywhere from several weeks to several months, or even longer. However, generally, a time frame of 6 months is more than enough to end up with a good deal. 

All the best for your purchase!