Buying a house can be exciting. It feels just like a shopping spree, but this particular purchase will most certainly change your life. Since there is a lot riding on this one particular decision, for some people – this process can take a lot of time. Think of all the financial hurdles one has to go through before they can hold the key to their home! And not only should your home be affordable, but it must also fulfill all of your wishes.
If you’re wondering how long it will take you to buy a house – then you’d be interested in knowing that the answer depends on a lot of factors. On average, the process can take somewhere between 30 to 45 days, depending on how quickly you’re able to close the deal.
To give you an accurate estimate of how long the process can take – here’s a list of all the steps one can go through.
Preapproval for a Mortgage
Getting a preapproval for a mortgage means you’re serious about the situation. It can also tell you the amount of money you can borrow. To make sure that you’re able to pay back a loan, a lender might ask you to show your assets, credit history, and income. After this procedure is done, you’re going to get an estimate of your loan in the business days.
But with this being said, arranging your financial documents to get the preapproval can take much longer. Here’s a timeline of what you’ll have to do before you get done with the paperwork.
Six Months Prior
Start saving money. This will go towards the down payment that you’ll have to give for the house so the lender can know that you’re serious about the situation. Also, before you make the down payment, try to get a crisp understanding of your credit score and your financial capability. A credit report will give you all of the insight you need.
If your score is low, you can work on increasing it so you can take out an easier loan. But this can only happen if you know where you stand!
Four Months Prior
Now that you’re getting close to the purchase try not to take any loan from any financial institution. Taking out a loan might affect your eligibility for a loan. In many situations, a lender looks at the debt-to-income ratio. This ratio compares the debt you have as a percentage of your income. If it’s too high, you might not get the loan since you have other liabilities.
Finding a Home
Hunting for a house can be a quick process if you go about the situation a bit strategically. Most people leave this process to an estate agent who is an expert in buying a house. On average, before an estate agent recommends a home to you – they’re going to look around at least 6 times to ensure they’re recommending the best home. Once they recommend you a home – you can bet it’s the best purchase!