The process of purchasing a property in today’s market is also noticeably different from what it was even a year ago, and this may also have an impact on the timescale you have in mind. It is crucial that you be aware of what to anticipate before you walk in unprepared and experience whiplash at the hectic speed (or wonder why is this mortgage approval taking so much longer?). So before you head in unprepared, it is necessary that you are aware of what to anticipate.
In order to be of assistance, we have outlined the nine primary stages that make up the homebuying process, from the very beginning to the very end, along with an estimate of how long each stage normally takes. Keep in mind that these figures are only estimates and that several of these stages might occur at the same time. We have also emphasized what might cause things to go more slowly, as well as what you can do to get things along more quickly if you are in a hurry.
A chronology of the nine processes involved in purchasing a home:
- Find a real estate agent
- Get pre-approved for a mortgage
- Peruse the available real estate listings
- Organize open house visits
- Make a deal with them
- Make an appointment for a house inspection
- Arrange for the residence to be appraised
- Ensure that your loan is accepted
- Finalize the transaction
Find a Real Estate Agent
Homebuyers are advised by the vast majority of industry professionals to have at least three agent interviews before settling on the one they believe will be the easiest to deal with.
Average time: 1 to 2 weeks
Even though hiring a real estate agent takes almost no time at all (you meet with the agent, then sign a contract agreeing to the agent’s representation), the vast majority of real estate professionals agree that prospective homebuyers should conduct at least three interviews with different agents before selecting the one they believe will be the easiest to collaborate with.
After all, agents are not a one-size-fits-all solution; rather, they focus their efforts on certain fields and kinds of customers. Some people get a kick out of training first-time homeowners, while others may prefer more experienced purchasers in higher price categories. The advantages of educating first-time homebuyers can be very rewarding. During this time, you may also have your own preferences for an agent in terms of their personality and the manner in which they communicate.
Knowing an agent’s level of proficiency with various technological platforms is a recommendation made by Christian Wallace, who oversees real estate services for the online mortgage lender Better. This might help you determine if the home is worth making the trip to view in person, which can save you a significant amount of time and energy. You will want to discover the real estate agent that is the ideal fit for you considering that the process of purchasing a property can be an emotional and even stressful one.
Get Pre-approved for a Mortgage
Lenders are required to check your assets before arriving at a pre-approval number for the loan. A mortgage pre-approval is a document from a bank that states the maximum loan amount that you are qualified to get for a mortgage. It is not a formal promise from the lender (that comes later), but it will help you establish your budget and convince sellers that you are in an excellent financial condition to acquire a property. This is very important when you are trying to buy a house.
Average time: 2 days to 2 weeks
The verification of your assets by the lender is a time-consuming process that is required in order to arrive at the pre-approval number. Having all of your documents ready to go is the most effective approach to getting this procedure ahead more quickly. This contains your most current pay stubs, federal tax returns, W-2 forms, bank, and other asset records, your credit score and report, evidence of employment, and a history of your home history.
In the past, being pre-approved for a loan before making an offer wasn’t required. However, in today’s very competitive market, it is almost impossible not to get pre-approved for a loan since it has become the standard practice. A letter of pre-approval demonstrates to sellers that you are serious about purchasing a home and that you have the financial resources available to complete the transaction.
The owner of Corcoran Reverie in Northwest Florida, Agent Hilary Farnum-Fasth, recommends acquiring a proof of funds letter to go along with your pre-approval letter in order to further speed up the process. You may do this by contacting Corcoran Reverie. This is a letter from the bank proving that you have sufficient liquid cash on hand to meet the down payment and any other charges involved with the transaction.