How Long Does It Take To Buy a House?

7 steps to buying a house: a timeline

Overall, buying a home typically takes anywhere from a couple of months to six months, though some steps may take longer than others.

“By far, the most time-consuming aspect of buying a house is actually finding the right house,” said Steve Nicastro, managing editor of Clever Real Estate. “This process involves researching neighborhoods, narrowing down your ideal locations and setting up [a multiple listing service (MLS)] search based on your purchase criteria (e.g., budget, home size, floor plan and lot size).”

» MORE: Homebuying checklist

1. Getting preapproved: 1 to 2 weeks

The first step in purchasing a home is getting preapproved by a mortgage lender, which will determine whether you qualify for a mortgage in the first place. You’ll also find out how much money you can borrow and at what interest rate. In most cases, getting preapproved takes about one to two weeks.

During the preapproval process, a mortgage lender will look at your income, assets and credit score. If you don’t have this information ready, it can slow the approval process. You’ll need to provide documentation like:

• W-2s
• Tax forms
• Credit reports
• Pay stubs
• Bank statements

Later on, once you decide on a home, you’ll still need to get full approval for a loan. But preapproval jump-starts the process and gets you conditional approval for a loan.

» MORE: How to qualify for a mortgage

2. Finding an agent: 1 to 2 weeks

Finding a good real estate agent can make all the difference in the homebuying process. This person can help you find the right home, negotiate a fair price and navigate the entire process. Finding the right agent can take anywhere from a few days to a couple of weeks, depending on how many people you interview and how soon you can chat with them.

To help you find the right real estate agent, keep the following in mind:

• Ask for referrals: Begin your search by asking friends, family and coworkers for recommendations.
• Research online: Check out online reviews for agents in your area with a good track record.
• Interview multiple agents: Interview at least three agents to get a sense of their experience and communication skills.
• Check their credentials: Make sure you work with a licensed agent with good standing in the real estate industry.
• Consider their expertise: Look for an agent who specializes in the type of home you're looking for and the area you want to buy in.
• Evaluate their communication skills: A good agent should be responsive, attentive and able to communicate effectively.

In most cases, it makes sense to have a real estate agent. But if the seller is a relative, you know the area well or you’re buying a home directly from a builder, you may not need one.

3. Hunting for your ideal home: 1 to 6 months

House hunting can be the most fun, but also the most frustrating, part of the homebuying process. Depending on what you’re looking for in a home, house hunting can take anywhere from one month to six months, but expect to spend at least a couple of months on the process.

One way to make it easier is by doing your research and having a clear idea of what you want. This can help you narrow down your search and avoid wasting your time on properties that don't fit your needs. Make sure you:

• Only look at homes in your preapproved price range, not your desired price range
• Know what areas you want to consider and don’t want to consider
• Know your non-negotiables

“My best advice is not to try to find the ‘perfect’ home, because it doesn't exist,” Steve Nicastro said. “Simply try to check off as many boxes as you can.”

4. Making an offer: 3 days to 1 month

Once you know which home you want, it’s time to put in an offer. This process can last anywhere from a few days to a month or more, particularly if negotiations are necessary.

The offer letter will include details like the terms of the sale and whether you want the seller to pay closing costs and any repairs before you close. Real estate agents will typically write an offer for you since they’re aware of the necessary technical jargon.

The seller can then accept your offer, reject the offer or provide a counteroffer. If they reject the offer, you’ll need to submit a new offer or find a new home entirely. If they counteroffer, you can choose to accept or reject their proposal.

5. Applying for a mortgage: 1 to 2 months

Once your offer has been accepted, the next step is to secure financing through a mortgage lender. This process can take anywhere from one to two months and includes:

• Submitting an application: You can choose to submit an application with the lender you got preapproved with or with a new lender.
• Ordering an appraisal of the property: The lender needs to ensure that a home’s value aligns with the amount you're borrowing. While the actual home appraisal typically takes a few hours, it can take up to two weeks to get the full appraisal report back.
• Underwriting: Next, your application goes through the underwriting process. The lender will scrutinize your financial information to ensure you meet their lending criteria. This process can take a few days to several weeks.
• Submitting more documentation: During underwriting, the lender may request additional documentation, such as bank statements or tax returns. It's important to respond to these requests quickly to keep the process moving forward.
• Getting loan approval: Once your application is approved, the lender will send you a loan estimate, which outlines all the costs associated with your mortgage, including the interest rate, closing costs and any other fees.

This part of the home-buying process can seem intimidating and overwhelming. Going with a reputable mortgage lender can make all the difference.

Gregorio, a reviewer from New York, said: “Having a team of experts to walk you through the process is very helpful and reduces the stress. And [the lender’s] continued support after closing is an added bonus.”

6. Scheduling a home inspection: 1 to 2 weeks

Home inspections are a critical part of the homebuying process. Unlike an appraisal, which provides an estimate of how much a home is worth, a home inspection shows if there are any major issues with a property, such as necessary repairs or replacement parts. The actual inspection typically takes a day or less, but it may take a week or two to schedule an appointment.

Home inspections may or may not be required by mortgage lenders. Even if it’s not required, it’s best to not skip an inspection. If a serious problem turns up during the inspection phase, you can move back to negotiations or even pull out of the purchase.

» MORE: Home inspection checklist for buyers

7. Closing on a home: up to 1 week

Once your loan is underwritten, you’ll receive the closing disclosure. This document contains your loan’s terms, including the interest rate and the amount you need to pay in closing costs. Closing costs include appraisal fees, insurance, taxes and other fees that come along with a home purchase. They typically range from 2% to 5% of a home’s purchase price.

Lenders must give you at least three business days to read the closing disclosure before closing.

Lenders must give you at least three business days to read the closing disclosure before the closing meeting. Make sure to read the closing disclosure and let the lender know when you’re done or if there are any issues, such as typos or incorrect information.

The entire closing process should take no longer than a week, but it could be longer if you run into any of these issues:

• An appraisal came in lower than the offer amount
• An inspection turns up problems that aren’t easily resolved by the buyer and seller
• There are issues with the title search, including liens, taxes or debts
• The loan offer broke down because of a change in the borrower’s financial situation after preapproval
• One of the parties backed out of the agreement

Factors that may delay the homebuying process

There are many issues that can delay the homebuying process. Some of the most common issues include:

• Financing issues: This could include problems with your credit score, issues with your down payment or delays in getting preapproved for a mortgage.
• Home inspection issues: If your inspector finds any issues, it may take time to negotiate repairs or determine whether to move forward with the purchase.
• Appraisal issues: If the home doesn't appraise for the agreed-upon price, it may take time to renegotiate the terms of the sale.
• Title issues: This could include problems with the title search, issues with liens or judgments against the property or other legal issues.

How to minimize delays

However, there are steps you can take to minimize homebuying delays.

Prepare paperwork

Make sure you have all the necessary paperwork ready ahead of time, including bank statements, tax records and proof of income. Also, communicate any changes to your financial situation promptly to your lender.

Choose trusted professionals

Work with a trusted real estate agent and lender who can guide you through each stage of the process. Your agent and lender should also be good communicators, according to Steve Nicastro.

“It’s also a good idea to set up Google Calendar alerts for important dates like when a home's inspection needs to be completed, key points in the loan's underwriting process, appraisal, etc,” Nicastro said.

FAQ

Bottom line

Every buyer and property is different, so the time it takes to buy a home can vary. However, you can typically expect the entire process to take up to two or three months. Still, some factors can hold up closing on a home. Before choosing a lender, ask about its average closing time. Some lenders offer guarantees to close within a specific number of days, plus money back if you don’t finish on time.