Getting ready to buy your own home? While the process is exciting, it could also become stressful since there are a lot of moving pieces to manage. To help get you started, here’s a brief overview of the homebuying timeline and what you can expect along the road to becoming a homeowner.
First things first, there’s getting pre-approved for the mortgage. Unless you’re fortunate enough to be able to make a cash offer due to inheritance or some other endowment, this initial step could be a real eye opener into your homebuying potential. It involves speaking to a lender who reviews your finances and evaluates your buying power. Be sure to shop around for great rates and someone you can trust.
These professionals also shed light on ways to improve your financial standing, including eliminating debts to get a better interest rate. Attending to these matters is important and should be done sooner rather than later to maximize your future savings. Lenders may reveal other opportunities to save as well, such as VA mortgage loans for qualified veterans.
Generally, obtaining a pre-approval letter takes a few days. Having this in hand shows sellers you’re serious and ready to move forward when the time comes. Next, it’s time to enlist the support of a buyer’s agent (realtor) and begin your search. After speaking with the lender, you should have a good understanding of your price range. Use it to narrow down your search parameters along with other important requirements, such as location, number of bedrooms, and so on.
Real estate websites are very constructive and you should take advantage of virtual tours, loan estimates, and other site features. The agent can also provide insight into listings, both online and private. Schedule tours of ones that you like and fit your budget. Be prepared to move quickly with an offer — and possibly lose out — as competition has been fierce the last few years. This part is often the most time-consuming, potentially taking months.
When an offer is made, your realtor will help negotiate and place counteroffers for certain issues. This may take a few days or weeks. Once accepted, a home inspection and appraisal need to be scheduled. These are essential in ensuring a fair price. Depending on availability for these services, this part could also take weeks. If any issues are found, they’ll likely need to be addressed before moving forward.
After all that, your loan goes through underwriting for approval by taking a final look at your credit and finances. To expedite this step, it’s important to quickly respond to any questions from the lender or underwriter. Lastly, it’s time to close on the house. Taking about three days, this involves finalizing the loan, a walk-through of the house, and signing a lot of paperwork. If all goes well, you’ll transfer the funds and receive the keys to your new home!
Overall, homebuyers can expect this process to take four to six months. If you want to learn more about the homebuying timeline, please see the accompanying resource from the Sherry Riano Team.
Infographic provided by The Sherry Riano Team, mortgage lenders
Author bio:
With over 20 years of experience in the mortgage industry, team leader Sherry Riano exudes a deep passion for helping families in North Carolina, South Carolina, Tennessee, Virginia, Florida, and Alabama financially obtain their dream home. Ensuring its clients and business partners are top priority, The Sherry Riano Team consistently takes into consideration each customer’s needs and goals to build a lifelong relationship. With a specialized approach to self-employed borrowers, first-time homebuyers, jumbo loans and VA loans, The Sherry Riano Team has knowledgeable advocates for any customer with which it partners.
