Are you looking to find out how long does it take to close on a house? Well I’m going to give you 4 -5 different points to help clear that question up and I’m going to do it right now.
Hi Everyone! My name is Ty Eden, Realtor with Exit Realty Redefined in Wheaton IL and today we are going to talk about how long does it takes to buy a house. Now as a point of reference, the time period to buy a house can be anywhere from couple weeks (6 weeks to 6 months) so everyone’s circumstance is a little different but if you follow some of these steps that I point out on this video it should take you hopefully less than 6 months. The biggest hurdle is actually finding the actual home that you want to buy.
First thing you want to address is:
You want to find a mortgage lender to get what they called a pre-approval. What a pre-approval means is the mortgage lender is going to obtain financial information from you. These are how much you owe; how much you make and whatever other aspects of your financial situation that maybe. From that they can determine how much of a mortgage you can qualify for. This is important because that tells you how much of a house you can afford to buy.
Now qualifying for a mortgage maybe takes 2 days to a week depending on if there are some hurdles such as your credit score. If there is a challenge on your credit score then you have to overcome and that is getting those bad marks out of your credit score. Just as the process name goes “Pre-approval” you want these to be before you actually buy a house. This way you got a pre-approval letter so when you do go out and hunt for a house and you find one they see that you have a pre-approval letter that you present with your offer on the home, they know you mean business and they know your qualified and it exhilarates the buying process quite a bit.
Like in any other industry, your going to have Rockstar performers and you’ll going to have some folks that are real dogs. They drag their feet to drag the process down and so forth. Go to people you know and that you trust and ask for some references. See if you can get some names that are Rockstar’s but also you can connect with as well. It is really important that you can communicate with this agent as well as help you find the house that you truly desire.
A Rockstar agent should be able to help you find a house within a few days to a week if they know the area your looking to move in to. If you don’t know the area, they should help you find the area that you want as well. Those agents that are kind of average will drag the thing out for almost several weeks. Make sure that you interview the agent especially if you are on a strict timeline. Find out what steps the agent may take to speed up the process so you can be in that house a bit quicker.
This can vary based on how much time you’ve got available to put towards that effort. A Real estate agent can bring the opportunity to you because it’s simple for them to make the searches on the MLS as well as you can go to the various retail sites out there(Trulia,Realtor.com and Zillow) to compare and have an idea on where to move to and good old fashion of driving around to look at those houses too.
If you work full time then you time to look at these houses is going to be limited to the Weekends. If you have a lot of time and you want to put an effort to this whole process that can take 3-6 weeks to find the house that you want to make the offers on. If it’s not a priority and you looking to put less effort on the process then it can take longer than 6 weeks. That about the timeline but again it depends on the effort that you want to put into it.
This can move very quickly or can drag out for a day or two. If you make an offer and the seller accepts it then it’s a binding contract. The seller has 3 options that they can take with: Accept it and sign the contract, deny it and make it go away and lastly, they can do a counter offer. More often than not sellers are going to make a counter offer to your offer and at that point it is your option whether or not your going to accept the revised terms. If you decide not to accept then the offer is dead move on to the next house.
Once the seller and the buyer agreed upon the actual terms of the sale, the contract goes to your mortgage lender and undergoes an underwriting. The underwriting people are the ones who does a more extensive and thorough look at the house which is the collateral and the borrower. They will be doing a much more thorough investigation on both. An Appraisal will be ordered so that way the bank can see how much the house is worth lending against. This can take 3-6 weeks, generally to close once you’ve made an offer this is anywhere from 45-60 days some exceptions if your paying cash can be as quick as 30 days.
Once your contract is biding and seller agrees to it, this is submitted to your mortgage company and they will do the underwriting. In this time period, you as a buyer can go out as the home inspector and do an inspection of the home to see if there’s any underlying issues. In the contract you have also given your mortgage company an escrow and a deposit. That just goes to say that your serious in buying the home together with the pre-approval letter.
On the contract there will be an agreed closing date. Typically, those closing dates can vary from 30-60 days unless there’s some sort of extenuating circumstance between the buyer and the seller. What it looks like in the closing is typically the buyer and the seller come to an agreed location and the title company oversees the closing, the transfer of funds, transfer of title which they have insurance on to make sure that there are no title issues. The mortgage lender actually issues the funds to the title company and then the title company transfers the funds to whoever deserves the funds on the seller’s behalf. At that same meeting there will be the exchange of keys and voila! The buyer has now bought the home.