How Long Does It Take to Buy a House?

Important Highlights

• Buying a home can take anywhere from two weeks to three months
• If you’re buying with cash – as little as two weeks
• If you’re buying with a mortgage – about 45-60 days
• If you’re buying a short sale property – at least three months

When it comes to purchasing a house, it’s crucial to understand the timeline involved. The duration of the home buying process can vary depending on factors like financing options and the type of property. Typically, once your offer is accepted, the closing process takes around 30 to 60 days, unless you’re making a cash offer.

In this article, you’ll discover the timeline for buying a house based on common scenarios – cash offer, mortgage, and short sale. Whether you’re searching for a home in Boston, MA, or a condo in Milwaukee, WI, here’s what you can expect throughout the journey.

Preparation Steps Before Buying a Home

Prior to beginning your home search, there are several essential preparatory steps to take. Organizing your finances, saving for a down payment, and enhancing your credit score can impact the time required to purchase a property.

Here are some key tasks to complete:

• Check your credit score and review your credit report
• Enhance your credit score and reduce debts if necessary
• Determine your monthly budget and household expenses
• Save for a down payment and closing costs
• Gather necessary documentation for a mortgage

If you plan to finance your home purchase with a mortgage, saving for a down payment is essential. The amount required for a down payment depends on various factors such as your financial capacity, credit score, available mortgage options, and eligibility for down payment assistance.

While many believe a 20% down payment is necessary, there are numerous low- and no-down payment loan options available, including FHA, VA, and USDA loans. Some conventional loans also offer lower down payment alternatives.

Although a 20% down payment on a conventional loan has its advantages, such as avoiding private mortgage insurance (PMI), opting for a lower down payment may be beneficial if saving for a larger amount is challenging. Remember to budget for closing costs, which can amount to approximately 5% of the purchase price.

1. Buying a House with a Mortgage: 45+ days

Purchasing a property with a mortgage typically takes longer than a cash transaction due to the loan approval process. After your offer is accepted, the timeline involves securing financing, conducting inspections, and meeting lender criteria before the closing date. While the process generally spans 45 to 60 days, it can vary based on factors like lender efficiency, appraisal results, and transaction complexity.

Here’s a detailed look at the standard mortgage timeline:

Step-by-Step Guide to Buying a House with a Mortgage:

2. Purchasing a House with Cash: As little as two weeks

Approximately one-third of homes in the U.S. are bought with cash, according to a Redfin study. If you have the necessary funds and can provide proof of payment, buying a house with a cash offer can be completed in as little as two weeks under optimal conditions.

Here’s a breakdown of the steps and timeline involved in a cash purchase:

Step-by-Step Guide to Buying a House with Cash:

3. Purchasing a Short Sale Property: At least three months

Despite their name, short sales can be a lengthy process. In the best-case scenario, expect a minimum of three months. In more challenging situations, the duration can be significantly longer. Buyers often wait to apply for a mortgage until the seller’s lender approves the short sale, a process that can take at least a month.

Below is an overview of the steps involved in purchasing a short sale property:

Step-by-Step Guide to Buying a Short Sale Property:

Frequently Asked Questions About the Homebuying Process

What factors can prolong the homebuying process?

Issues like low credit scores, missing financial documents, discrepancies during appraisals, and negotiation or repair requirements following home inspections can delay the homebuying process.

Can the mortgage approval process be expedited?

Yes, obtaining pre-approval before making an offer, promptly submitting all necessary financial documents (e.g., tax returns, bank statements, pay stubs), and selecting a lender known for efficient processing can accelerate the mortgage approval process.

Is a cash offer always preferable to a mortgage?

While cash offers have advantages in competitive markets and negotiations, using a mortgage allows buyers to retain cash for investments, emergencies, or home improvements. Each option has its benefits depending on the buyer’s circumstances.

What happens if my mortgage isn’t approved before closing?

If your mortgage approval is delayed, it could impact or jeopardize the closing process. The outcome depends on the contingencies outlined in the purchase agreement, as some contracts allow for extensions.

Is a home inspection necessary for cash buyers?

Though not mandatory for cash purchases, a home inspection is highly recommended. Inspections can uncover hidden issues like structural defects, outdated systems, or safety hazards that may not be visible during a walkthrough.