Homeownership 101: How long does it take to buy a house?

Are you ready to take the plunge and buy a house? It’s a big purchase, and it’s also a complicated one. Buying a house is a significant journey that can sometimes take up to a year, or even more, to go from your current home to your new one. But it’s not always that long! It really depends on your unique circumstances and goals. Let’s take a look at some of the biggest factors that will determine how long it takes to buy a home. 

Saving for the down payment

The time it takes you to save your down payment or apply for down payment assistance plans will be different for every budget. Unless you can afford to buy a house outright (in that case, congrats!), you’ll probably need to make some type of down payment. Many factors go into deciding how much to put down on a home. First, figure out what percentage of your dream home’s price tag you want to put down.

One report from Zillow in 2023 said it can take up to 11 years for the typical homebuyer to save up for a 20% downpayment! But the time it takes to save for a down payment depends on your unique situation, from interest rates and housing market prices to where you live, the percentage you want to put down, your income, and how strategic you are with savings and investments. 

Get pre-approved

This step is often overlooked, but it only takes 1-2 weeks and can set you apart from other buyers. Once you’re ready to start touring properties, get pre-approved for a mortgage first. You’re not committing to anything - not even that number. It’s just a way to show you’re a serious buyer and you’ve been officially vetted by a reputable lender. 

Pro tip: In highly competitive markets, some real estate agents won’t even schedule a private showing unless you’ve been pre-approved. It also allows you to make an offer faster.

House hunting: Searching for the perfect home

Next up, you've got to find your dream home. How long this takes really depends on your priorities, your target market, and the inventory available that meets your budget and criteria. On average, it can take from four weeks to six months to find and secure the right home. You'll want to take your time here to make sure you find the right fit for you.

But other factors can speed up this process. Zillow research shows that about 50% searched for less than three months. 

Choosing a lender and getting approved

Once you've found the one, it's time to get approved for a mortgage loan. Hopefully, you’ve already gotten pre-approved, which can shave time off this step. But even with pre-approval, you still need to be approved for this specific purchase price and loan. On average, this usually takes 30 to 60 days, but it could be as short as two weeks, depending on your lender and how quickly you provide all the necessary documents. 

Shop around and compare rates from different lenders to find the best deal. This part of the timeline can feel like a marathon with your lender or mortgage company asking you for every document under the sun every other day. Accepting it's an admin-heavy process can help manage everyone’s expectations.

Meeting additional requirements

Closing on your home may be contingent on several things, including property line assessments, home inspections, engineer's reports, negotiated repairs, tax or probate issues, and a satisfactory appraisal. These are all critical steps to make sure you're getting the right house for your money, but they can add an extra couple of weeks to the process.

Closing on your home

Finally, you've made an offer, and it's been accepted. Now, it's time to close the deal. This usually takes about 50 business days. If you're making a cash offer, though, you could speed up this process to as little as two weeks.

Remember, these are just averages. Your timeline can vary depending on your personal situation, the local housing market, and even the time of year. So, while it might seem like a long road, don't let it scare you off. Buying a house is a big step, and it's worth taking the time to do it right. 

Frequently asked questions

Q: How long does it take to save for a down payment?

A: On average, it can take about 6-12 months to save for a down payment. However, the exact amount of time depends largely on your budget and your target percentage. 

Q: How much time should I spend looking for a house?

A: Most people spend about two to three months searching for the perfect home.

Q: How long does it take to close on a house?

A: The closing process typically takes 30-60 days. However, if you're making a cash offer, this could be as short as two weeks.

Q: Can the home-buying process be faster?

A: The timeline for purchasing a home can vary greatly depending on your personal circumstances, the local housing market, and even the time of year.

Q: Is it worth taking the time to buy a house?

A: Whether or not to buy a home is a highly personal and subjective question. But once you’ve decided to buy a home, it’s a significant investment that requires taking the time to do it right.

Q: What is the quickest time in which a house sale can close?

A: If you're making a cash offer, the closing process can be as short as two weeks.

Q: What can slow down the closing process?

A: Issues with financing, unexpected home inspection problems, legal troubles, and many other obstacles can delay the closing process.

Q: What happens if the house doesn't appraise for the selling price?

A: If the house appraises for less than the selling price, the lender might not approve the loan. In this case, you might be able to renegotiate the price, pay the difference, or cancel the contract.

Q: What documents are needed for closing?

A: You'll typically need your government-issued ID, proof of homeowners insurance, a copy of your contract with the seller, and any home inspection reports. But it’s best to confirm with your lender or closing representative to ensure you have what you need. 

Q: When do I get the keys after closing?

A: Usually, you'll receive the keys to your new home at the closing once all paperwork is complete and funds have been transferred.

Q: What if I find issues after closing?

A: Once the sale is finalized, any undisclosed issues become the buyer's responsibility. This underlines the importance of a thorough home inspection and other due diligence prior to closing.

Q: Can I move in on closing day?

A: This depends on the individual transaction and regulations within your state or county. Typically, the home is legally yours once the closing is complete and you can start moving in. However, things like final walk-throughs or special arrangements agreed upon with the seller can affect when you move in.  

Q: What is a closing cost?

A: Closing costs are fees associated with your home purchase that are paid at or near the closing of a real estate transaction.

Q: Can closing costs be negotiated?

A: Yes, some closing costs can be negotiated with the seller or the lender.

Q: What is earnest money?

A: Earnest money is a deposit made to a seller indicating the buyer's good faith in an arrangement. This money goes towards your down payment at closing.

Q: Can I back out before closing?

A: Under certain circumstances, a buyer can back out before closing, but there may be financial implications, including losing your earnest money. It's important to carefully review your contract and discuss it with your real estate agent before making this decision.

So, how long does it take to buy a house? The short answer is that it varies for each person. The timeline can range from several months to a year or more, from saving for a down payment to closing on your new home. However, by understanding the general process and being prepared for potential delays, taking the time to navigate the home-buying journey properly can help make it a smooth one. Happy house hunting!