The more prepared you are, the less time it will take to buy a house. That’s the short of it. The longer story is a bit more complex as there are several steps involved in the process of buying a home. We’ll walk you through each one. 

Before we dig in, there are a few preliminary things you can start doing to help you wrap your mind around the home buying process. First, start thinking about what you want in a home, keep an eye on what’s popping up for sale in the areas that you might be interested in, and start buttoning up on your finances. When you’re ready to take the plunge the bigger steps are as follows: 

Step 1

Find a good Realtor
Time: 1 week is a safe bet 

We always suggest interviewing at least three different Real Estate Agents to get a good feel for what you can expect from each one, choose the one that you feel you jive with and can trust. We wrote a whole blog post with great interview questions, you can find it here. Some key traits to look for in an agent are: honesty, integrity, and intelligence. Bonus if you happen to like them as well. You want to feel confident that this person will be able to guide you through the process of making one of the biggest purchases you will ever make in your lifetime, so choose wisely.

Step 2

Talk to a Lender and Get Pre-Approved
Time: Depends on who you work with and how prepared you are, but anywhere from 24 hrs to 5 days 

The sooner you talk to a lender, the sooner you will know exactly where you stand in terms of how much you are able to borrow. Oftentimes people make assumptions about their credit score without actually knowing and then the thought of finding out becomes overwhelming. We are here to tell you that the sooner you face the reality of your situation the better off you will be. 

Step 3

Begin Your Home Search 
Time: An average of 10-12 weeks depending on the market and buyer needs 

This step can be very short or it may end up being the longest. Either way is ok as long as you end up with a home that fits your needs and desires. According to HouseLogic the “typical buyer actively searches for 10 to 12 weeks and looks at a median of 10 homes.” We have worked with clients who went to see 3 homes on the first day, chose one, and made an offer that same day. On the other hand, we have also worked with clients who take years to find the perfect one, showing them a lot of houses throughout the process. Both scenarios are perfectly fine and normal as far as we’re concerned. What is important in this stage is to know what you want, don’t settle, and be ready to jump on the perfect one when it comes up. 

Step 4 

Make an Offer, Negotiate, Sign a Contract 
Time: Typically somewhere between 24-72 hours 

This step varies a bit depending upon the terms of the offer, how responsive both parties are during negotiations, and how quickly both parties can come to an agreement of all terms. The actual offer writing portion can usually be done electronically within a couple hours. Negotiations may happen quicker or take much longer depending on the situation and circumstances of both the buyer and seller. Once the offer has been accepted you typically have 48 hours to provide the Earnest Money Deposit (EMD). This amount is agreed upon in the contract, shows the seller that you are serious, and will get credited toward the down payment on closing day. 

Step 5 

Order an Inspection 
Time: Typically somewhere between 24-72 hours 

As soon as your contract is accepted, you will want to contact an inspector to get on their calendar. Your Realtor will have a list of trusted inspectors to refer you to, or if you know a good inspector that you’d like to work with, you’ll want to contact them at this time. The inspection itself will likely take 2 - 3 hours and we’re often able to get one within a couple days. 

Depending on the workload of the inspector, you will likely have a report waiting for you in your email inbox within 24-48 hours of the actual inspection. If the inspection turns up issues, it can cause some delays as the contract will likely need to be renegotiated at this point. 

Step 6 

Order an Appraisal 
Time: Typically somewhere between 7-10 days 

Once inspections are through, a good Realtor will immediately give the lender the go ahead to order the appraisal. This process usually takes a little longer than the inspection process. The actual visit to the home typically takes less than an hour, but then the appraiser will go back and compare the home to other similar homes in the area to determine its value. The appraiser will then send the report directly to your lender. 

Step 7 

Final Underwriting for the Loan 
Time: A few days 

Once a deal is under contract, we always advise our buyers to adhere to a strict budget - don’t make any large purchases like cars or furniture until you close on the purchase of your new home. Why? Getting pre-approved for a mortgage doesn't automatically mean you get a loan on the home you have under contract. Before you can close the lender will review the inspection and appraisal and check your financial situation one more time. 

Step 8 

Review Title Commitment 
Time: About an hour 

It will take a few weeks from the time a deal goes pending to receive the Title Commitment. Once this is received it is a good idea to walk through it with your Realtor who will be able to explain everything to you. This document is provided by the title company based on the discoveries made when they looked at deeds and other documents to make sure you will own the home free and clear of any liens or former claims to the property. Every once in a while some things come up where we may advise a client to seek additional expert legal advice. 

Step 9 

Get Homeowners Insurance 
Time: A few days to a week 

The variance in time when it comes to getting homeowners insurance comes into play depending upon whether the insurance company wants to send an agent out to view the property in person and also whether or not your lender requires things like flood insurance. 

Step 10 

Arrange for Closing Funds 
Time: Give yourself at least a few days before close to be safe 

Find out from your agent whether you need to bring a cashier's or certified check or transfer funds digitally. Transfer the funds to the right account, and get your money ready to release. 

Step 11 

Final Walk Through 
Time: About an hour 

The final walk through is your last opportunity to double check that the sellers made all repairs that were negotiated in the offer and that the house is in good condition with any appliances still there that were negotiated to stay with the home. 

Step 12 

Closing the Deal 
Time: About an hour 

Get your writing hands ready to sign a whole lot of documents. A professional from the title company will be guiding you through the paperwork and signing process. On occasion your lender and Realtor may show up in support on your big day. If your contract states that you get possession at close, you will likely walk away with the keys in hand. Otherwise, 30 days after closing is a common amount of time in a sellers market for the owners or tenants to move out. 

It is worth noting that things don’t always happen in this exact order nor on or within the exact time frames mentioned here. There is plenty of overlapping that goes on between and among these steps, but with a good agent at the helm, you will be guided through the process seamlessly.