How Long Will It (Probably) Take to Buy a House?
From market conditions to location to your individual finances, the path to buying a home can vary greatly from person to person. (For a little idea of what this range might look like, consider some of the first-time homebuyers I spoke with) .
As of October 2024, the average home purchase time from under contract to closing was 44 days, according to ICE Mortgage Technology . Of course, this chart doesn’t take into account the pre-buying steps such as setting a budget, figuring out where you want to live, and buying the place you actually want to buy. For example, now my mother is moving to another house – right down the road, but nevertheless, a move is a move. I followed her every step of the way, and her timeline from start to finish was (surprisingly) a much more typical four to six months.
Recognizing that this process can vary significantly depending on your circumstances, here’s an easy-to-read chart detailing how long most people can expect to wait at each stage of the homebuying journey.
Stage 1: Pre-sale preparation (1-2 months)
When you’re thinking about buying a home, there’s a lot to do before you even think about house hunting. Let’s figure it out.
Obtaining preliminary approval (3-7 days)
A pre-approval letter is key to making your offer more attractive to sellers. It can also make the buying process easier, since pre-approval can speed up final loan approval once you find the home you want to buy. Additionally, the pre-approval process is the best time to identify any problems with your credit or financial performance early, giving you time to resolve them.
The pre-approval process includes:
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Collecting financial documents (pay stubs, tax returns, bank statements)
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Applying for a mortgage
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Checking your credit history
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Receive a pre-approval letter detailing the amount you can borrow.
Setting budget and criteria (1-2 weeks)
One of the biggest challenges when buying a home is figuring out exactly how much home you can afford. It’s vital that you don’t skip this step and simply use the number the bank gives you, as you probably don’t want to end up “poor” by paying so much for your mortgage that you have little left over for other expenses and savings. the ” 25% Rule ” as a useful, if conservative, guideline; According to this calculation, you’ll aim to spend no more than 25% of your net monthly income on your mortgage and property taxes.
At this stage you:
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Determine your comfortable monthly payment
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Target study areas
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Make a list of things you must have and would like to have.
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Pass an interview and choose a real estate agent
Stage 2: Finding a home (1-3 months)
This stage varies the most in duration depending on market conditions and your specific requirements. At this stage you:
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View multiple properties (often more than 10 houses)
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Attend open days
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Comparable sales research
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Refine your criteria based on what you see
Again, current market conditions could significantly impact this chart. In a seller’s market, you may have to act quickly and make multiple offers before one is accepted.
Stage 3: Proposal and negotiations (3-7 days)
Once you find “the one,” things will move quickly because you:
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Submit your proposal with a pre-approval letter
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Agree terms with the seller
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Reach agreement on price and terms
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Sign the purchase and sale agreement
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Make a deposit
Stage 4: Contract duration (30-45 days)
This is the most detailed stage of the process, but most of the work will likely be done by your attorney and lender while you sign a lot of documents and email them updates every few days. This stage includes:
Home Inspection (Week 1)
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Scheduled and full inspection (2-4 hours)
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Review of the inspection report (1-2 days)
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Negotiations on repairs or credit (2-5 days)
Be sure to save your home inspection report and turn it into a DIY to-do list after you purchase.
Bank assessment (1-2 weeks)
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The lender orders an appraisal
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The appraiser visits the site
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Consideration and resolution of any issues related to the assessment
Registration of a mortgage (1-4 weeks)
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Provide additional documentation to the lender
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Underwriting overview
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Resolve any conditions or issues
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Get final loan approval
Title work (2-3 weeks)
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Search by name carried out
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Title insurance has been issued
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Property inspection (if necessary)
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Review of any restrictions or easements
Stage 5: Final preparation (1 week)
The final stage includes:
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Final inspection of the property
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Overview of Closing Disclosure
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Organizing closing funds
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Agreeing on the time and place of closing
Stage 6: Final day (2-3 hours)
Congratulations! Finally you are at the finish line. The big day includes:
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Review and signing of the final document (many signatures)
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Transfer of funds
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Transferring keys
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Recording a new act
Tips for sticking to a schedule when buying a home
There is no shortage of circumstances that can lengthen the home buying process. The estimate may be too low, forcing you to reconsider your offer, for example. Or the inspection may reveal problems with the property, requiring lengthy negotiations with the seller over who will pay for repairs. You may also have difficulty getting your mortgage approved or experience other bank delays.
Since much of the housing market is out of your control, continue the process by staying aware of what you can control. Respond to any requests for documentation or signatures as quickly as possible and make sure your funds are always available when it comes time to close. And of course, while we should all know certain terms, there’s no shame in quickly brushing up on all the terms you need to know when buying a home so you can be more responsive and better informed when your lawyer provides you latest news.
Please remember that while this timeline represents a typical home buying process, each situation is unique. Working with experienced professionals and staying organized will help you make purchases on time and minimize delays.