If you’re looking for a new house, you’re probably wondering, “How long does it take to buy a home?” Keep reading to discover everything you should know about the process, including factors that can make it take longer.

Whether you’re wondering about how to cash out refinance in Texas or what size house you can afford, Champions Mortgage has all the answers.

The Traditional Process

If you’re going through the traditional process, you’ll use the following six steps to buy a house.

1. Pre-Approval

To determine the amount you can afford for your mortgage, you’ll apply for pre-approval. To help decide the size of house you can afford, the mortgage lender will look at documents like your credit score, tax returns, income, and other assets.

Some lenders can return your pre-approval the same day, and the offer stays valid for two to three months, depending on the mortgage company. Either way, you’ll receive a loan estimate within three days, which shows the amount you’re approved for, your interest rate, and other details.

Because comparing options gets you the best deal, the Consumer Financial Protection Bureau suggests getting loan estimates from three or more lenders.

2. Find a Home

Now that you’re ready to search for homes, you should find a real estate agent to help you. While you could find a home yourself, agents make the process easier because they have greater access to houses, some of which might not be on the market yet, and they’re experienced in targeting the showings to suit your needs.

While you’ll end up paying a commission fee at closing, consider how much time they save you. As long as you know what you want, you won’t have to go to many showings or open houses.

3. Make an Offer

Once you find the home you want, your realtor can help you make an offer that’s both competitive and fair. You can include contingencies in your offer — for example, whether you can legally back out if you can’t sell your home. However, a non-contingent or cash offer always has the edge when buying a house.

For many buyers, this is the most stressful part of the process, as it often includes waiting to hear about your offer and negotiating back and forth. According to the National Association of Realtors, sellers only accepted 25% of first offers in 2022. Your realtor can help navigate the nuances of negotiating to help reduce the stress.

4. Sign the Contract

Once the sellers accept your offer, you’ll sign a contract and make an earnest money deposit. This is an agreed-upon amount of money you put forth to assure the seller you won’t back out frivolously.

Earnest money usually requires between one and two percent of the home purchase price, but in a competitive market, it can reach as high as 10%. If you back out of the sale for reasons not outlined in your contract, the seller can keep your earnest money as compensation for their wasted time.

5. Inspection

Never skip a home inspection, and for some buyers, such as those applying for an FHA loan, lenders require you to purchase an inspection before closing. Depending on state laws, you should conduct the inspection within a certain period after signing the contract.

If the inspector finds any serious issues, such as water damage, a bad roof, or a faulty electrical system, you should negotiate repairs or other concessions with the buyer. It will delay closing, but you’ll find it worth the wait.

6. Closing

After the inspection, the process moves to underwriting the loan and appraising the home’s value. Some loans take longer to process, but you can expect it to take around 50 days. You’ll spend most of this time waiting and preparing other logistics for your move, such as hiring a moving company.

You’ll receive your closing disclosure at least three days before your designated closing date. During closing, you’ll sign the necessary paperwork and bring a cashier’s check for your closing costs if you didn’t roll them into the loan.

Factors Affecting the Timetable

So, how long does it take to buy a home? The entire process usually takes between 60 and 90 days, but several factors can affect the duration.

Trouble Securing Financing

If you have trouble getting approved for a loan, it can delay the entire process. To help ensure you obtain approval in a reasonable amount of time, prepare the following before applying:

• Roughly six to 12 months before you apply, start saving for a down payment. If you can show the lender you have it available, you’re much more likely to obtain fast approval.
• About three to five months before you seek pre-approval, avoid taking out any new loans or making significant financial changes like switching jobs.
• About a month before you apply for a loan, organize all the paperwork you’ll need, including three months’ worth of pay stubs, two years of federal tax returns, and two months’ worth of bank statements.

Appraisal Problems

If your potential home’s appraisal value comes in lower than your offer, it can complicate the closing process. Appraisals are independent assessments of a home’s value, and lenders usually won’t let you borrow more than the home’s worth. If the appraisal comes in too low, you’ll need to either cancel the purchase or renegotiate.

Inspection Results

Negative inspection results are the third most common delay for closings, right behind financing issues and low appraisals. If the inspector finds something you must fix, like a leaking roof or major cracks in your foundation, you have the right to renegotiate the contract. While it will delay the closing process, you shouldn’t have to pay for pre-existing repair needs.

Contact Champions Mortgage for Help Buying a Home

Now you know the answer to, “How long does it take to buy a home?” Whether you’re wondering how the pandemic has affected the home-buying process or looking for the best mortgage rates in Texas, Champions Mortgage can help. You can even get an instant quote without a credit pull.

To schedule a consultation, call (281) 727-2500 today.