If you’re thinking about buying a house, you should be aware of what the home buying process is like.
Many people start searching for homes without having an idea of what to do. The home buying process can take several months, so you’ll need to prepare by learning how to buy a house. After getting a better understanding of the home buying process timeline, you can start searching for homes.
Throughout the home buying process, you’ll go through several steps until you get a home you can call yours. Most of these steps don’t take long, but they’ll require you to do a variety of things. Fortunately, we’ll go over everything to make the process simple for you.
Read on to learn everything you need to know about the home buying process timeline!
Get Pre-Approved for a Mortgage
The first step in the home buying process is to get a pre-approval letter from a bank. Getting pre-approved for a mortgage lets you know how much the bank is willing to let you borrow. While this isn’t a loan, it’ll help figure out which homes you can afford when you start searching.
One of the benefits of getting pre-approved for a mortgage is being able to present sellers with the pre-approval letter. If they know you’ll be able to get a mortgage, they’ll be more likely to go through the selling process with you.
Search for a Home
After getting pre-approved, the next thing you’ll want to do is start searching for a home. Put together a home buying process checklist of things that you want in a home. From there, you can look for homes that meet your budget while also providing everything to suit your needs.
Searching for a home can take a long time, so don’t try to buy the first one you see. Instead, you can work with a realtor to help you find good deals in certain areas.
You’ll want to think about which location you’d like to live in and how big you want the house to be. If you give as much information as you can to a realtor, they’ll have an easier time finding something for you.
Make an Offer
After finding a home that interests you, you should then make an offer. This can be a daunting step if you’ve never negotiated before, but a realtor will help you make a reasonable offer based on what the home is worth.
Many sellers list their homes at prices above the regular market value. This gives them room for negotiation so they can get a profitable amount without losing buyers.
Your initial offer should be lower than the amount they’re asking for, but don’t go extremely low. If you insult a seller with an offer that’s too low, they’ll most likely turn you down completely.
Apply for the Mortgage
When you’ve found a home and negotiated an amount with the seller, all you must do is apply for the mortgage. Without a mortgage, you won’t be able to buy the house unless you have enough money in your bank.
Providing that you get a pre-approval letter, you shouldn’t have a problem getting a mortgage. However, if anything happens that would disqualify you from borrowing from a lender, you may be denied. This can happen if your credit score plummets after getting pre-approved.
Ensure that you maintain your credit score and avoid borrowing from other lenders throughout the home buying process. This will prevent you from getting pushed outside of a lender’s qualification guidelines.
Process the Loan
After applying, you’ll need to wait for the loan to get processed. During this process, you’ll have to submit more documents so that the lender can verify all your information is correct.
Your lender will also get the home appraised to ensure that the value is fair. If the value is too high, the lender may deny your application because they won’t want to pay more than the home is worth.
Aside from getting an appraisal, your lender will have the home inspected. This will benefit you because it’ll guarantee that you’re getting a home that doesn’t have any problems.
During the inspection, professionals will check for safety hazards and damages within the home. Providing that everything is in good order, you can move forward with the process.
Close on the Home
When the loan is processed and approved, the last thing you’ll need to do is close on the home. While you may want to perform a final walkthrough, it isn’t necessary.
During the closing, you’ll have to sign more paperwork that transfers the home to your name. Your lender will also send funds to the seller, so you’ll never see the money.
The exact amount of time it takes to close on a home will vary depending on where you live. However, expect to spend a few hours taking care of everything. In some cases, you may have to wait a day or two for funds to be transferred.
Now You Understand the Home Buying Process Timeline
Knowing how to buy a house will ensure you don’t run into any problems when you start your search. After reading this article, you can reference this home buying process timeline so that you know exactly what’ll happen when you want to buy one.
We encourage anyone that wants to buy a home to look at both their income and credit history. If you make enough money and are responsible for borrowing money, you can get a mortgage with a favourable interest rate and the repayment period.
Check out our other articles to learn more about how to buy a house!