How Long Does It Take to Buy a House?

The home buying process can span several months and even upwards of a year, depending on market conditions and personal circumstances. Understanding the timeline for buying a house helps set realistic expectations. From securing pre-approval for a mortgage to closing on the property, this guide breaks down each step in the journey, offering estimated timeframes and insights into what to expect along the way.

Step 1. Get Pre-approved for a Mortgage

If you plan to borrow money to buy a house, your first step is getting pre-approved for a mortgage. A mortgage lender will assess your financial information, such as assets, income, and credit history, to determine the amount you are eligible to borrow. Once pre-approved, you’ll receive a loan estimate, usually within three business days. This document outlines the loan amount, interest rate, and other important details.

The Consumer Financial Protection Bureau recommends comparing offers from at least three lenders to help you secure the best mortgage terms. Give yourself a week or two to compare different offers.

Step 2. Search for the Right House

With a pre-approval letter in hand, you’ll typically have 90 days to find a home before you need to go through the pre-approval process again. Talk to your real estate agent about what you’re looking for in a house, and they’ll set up viewing appointments for homes you’re interested in.

Depending on your preferences and the state of the local housing market, you may find the right home quickly, or it may take several weeks. A report by the National Association of Realtors (NAR) states buyers typically searched for 10 weeks and looked at a median of 7 homes.

Step 3. Make an Offer and Negotiate

Once you’ve found the house you want to buy, your real estate agent will help you submit an offer. Your agent can help you decide on an offer that is competitive with home prices in the area and reflects your best interest. The offer may have contingencies, which are clauses that allow a buyer or seller to back out of a real estate contract if certain conditions aren’t met. Your agent will walk you through each type of contingency, recommend which ones to include, and explain the risks of waiving any of them.

Then, it’s time to wait for the seller to accept or decline your offer or send a counteroffer, kicking off a round of negotiations.

Step 4. Obtain Loan Approval

In real estate, due diligence is the period of time between an accepted offer and closing. Once you’re under contract, you can expect your mortgage lender to close on your loan in one to two months. During this time, you and your real estate agent will gather any necessary documents for your lender to approve the loan. This additional documentation gives the lender a full picture of your financial situation.

The lender will typically require an appraisal and inspection of the new property, which can be completed while they’re finalizing your loan approval.

Step 5. Have an Appraisal

Your lender will hire a certified professional to assess the market value. It’s usually scheduled within a week and the report takes about three days to finalize. They’ll consider the home’s physical attributes, condition, upgrades, and amenities, and look at comparable properties in the area.

The appraisal gives lenders a precise estimate of a home’s market value, ensuring they are not lending more money than the home is worth and helping buyers determine if the purchase price is reasonable.

If the appraisal is lower than the offer, you have a few options. You can request a second look, renegotiate the price with the seller, pay the difference between the purchase price and the loan amount the lender is willing to offer, or back out of the sale with your earnest deposit if an appraisal contingency is listed in your contract.

Step 6. Get a Home Inspection

A home inspection is a visual assessment of a property’s condition and safety. It can identify issues with the drainage, heating system, plumbing, roof, structural integrity, ventilation, or electrical wiring. It also reveals if rooms, basements, or garages were completed without following legal code or obtaining proper permits. These illegal additions could then become your problem to fix and finance.

An inspection generally takes two hours, but the actual time depends on the size of the home and its components. Inspection reports usually take one or two days to complete.

If a home inspection contingency is in your contract, you can back out within a specific timeframe free of charge should significant defects be revealed during the home inspection.

Step 7. Close on Your New Home

The final step in the home buying process is closing day! At this stage, you’ll pay your down payment and closing costs. You’ll also sign paperwork, which takes one to two hours to complete. In the end, you’ll receive the keys to your new home and can officially start your next chapter.

Find a Real Estate Agent

A professional real estate agent knows the local market and has experience negotiating with sellers. Having one by your side makes the process a lot easier.

When you’re ready to find and purchase your dream home, reach out to The Massey Team at Berkshire Hathaway HomeServices Select Properties. Our professional Realtors, with over 45 years of combined experience, are here to make your experience as seamless and stress-free as possible.