Where do you start the home-buying process? What is the timeline for purchasing a home?

Table of contents:

Step 1: Getting mortgage pre-approval

Step 2: Finding the right home

Step 3: Closing the deal

Home Buying 101 - Working with a Real Estate Agent from Sarah Marrinan

How long does it take to buy a house? While estimating a timeline for home buying will depend on many variables, real estate experts estimate that the average time required is around four months.

In short, home buyers might need to fit their home search into any number of time-sensitive situations, so knowing how long the buying process typically takes can help them plan accordingly.  Plus, buyers should know that four months is how long it might take if everything goes smoothly. If problems crop up—with the home inspection, appraisal, mortgage, or other things—then the real estate buying process could take even longer.

Step 1: Get pre-approved for a mortgage

Your first step shouldn't be to check out homes; it should be to get mortgage pre-approval from a mortgage lender or broker. This is presuming you aren't planning to make an all-cash offer to a seller, but rather need a loan to make your goal of home buying happen.

There are a couple of reasons for this: One, unless you're really organized, it will take you a while to gather all the documents you need to show your lender for your loan, including pay stubs and tax forms. Two, if the mortgage lender finds out that your finances are less than ideal for homeownership—because of, for instance, a poor credit score—it can take months to clean up your finances so you're in better standing.  Not to mention, you'll need to make sure you've got enough cash so you can afford to make your down payment on your mortgage and pay closing expenses.

If your finances are in good shape, you can get mortgage pre-approval, which is a statement that the lender will lend you a certain amount of money. A mortgage pre-approval is better than mortgage pre-qualification. Being pre-approved for a mortgage and having this paperwork in hand is a major asset, because it shows sellers that you can afford their house and mean business, and it's a prime way to negotiate with a home seller. 

If your financial circumstances don't change much by the time you close this real estate deal, you can ask a lender to extend that loan promise for an additional 90 to 120 days or longer; you can also lock in a great interest rate so it doesn't rise by the time you're actually buying a house.

CLICK HERE TO START YOUR MN HOME SEARCH

Step 2: Find your dream home

While looking at real estate listings online is fun and easy, once you're serious you need a real estate professional to give you MLS access and show you homes. The Clear Cooperation policy of 2020 consolidated ALL home listings advertised by agents back into the MLS so buyers aren't bounding around all kinds of public websites going crazy looking for homes. And seeing homes in person means you'll have to schedule an appointment for a home tour that work for the home sellers, too.

You'll likely need to spend some time house hunting, and see a lot of homes (virtually) before you find one you love. On average, buyers see 5-10 houses in person before they make an offer, but that number can be much higher if you don't do your advance research. The last thing you want is to feel rushed or make a decision in haste that you will later regret. Spend your time scoping out your favorite neighborhoods and refining your MUST HAVE list with your REALTOR so that you are sure your expectations are in line with your finances.

Interested in buying a brand new home?
Are you buying AND selling? LET’S CHAT!

Step 3: Prepare for closing day

Once you've found a house you love, made an offer that's been accepted, and are under contract to purchase the property (which can typically happen in a few days), the waiting game really begins.

Depending on your lender and loan type, it takes 30-60 days to close on a loan for buying a house, from the time you have an accepted offer to underwriting the loan to the day you sign all the documents and move into your new home.

Can you see now why getting pre-approval early is so important for the buying process? In fact, securing a loan is the most common holdup in buying a house.

Why does it still take at least 30 days to close? As the buyer, you may have inspections plus the lender needs to do its due diligence by conducting a home appraisal to make sure it's a good investment (since after all, the lender's money is on the line) and underwriting your mortgage including additional employment verification. 

As the buyer, it will also take time for you and your REALTOR to do your own due diligence by checking the home sellers' disclosure statements for any problems in the house that they're aware of, and also hiring a home inspector to check out the house from top to bottom for any problems. All of this takes time. Plus, in MN the title company needs time to ensure the sellers will be transferring clear title to you. Closing is a not a time to rush; you and your agent will want to make sure to do everything right.

See also:

• 8 Critical Things to Do Before Buying a Home: How Many Have You Done?
• Steps to Buy a House: How Long Do They Take?
• What Is a Mortgage Pre-Approval? Get an Edge When Home Shopping

Bottom line: As much as people complain about how long it takes to buy a house, it's all in the interests of making sure you're happy once you're a homeowner and this piece of real estate is finally yours. So when in doubt, there is no better time to start than now! If you're worried you'll find your dream house too soon, there are ways to negotiate with a seller and their agent so that it all works out.