Buying a house no matter if it is a single-family house in the suburbs or an apartment around the city center, it might take some time to actually buy it.
From day 1 to when you can buy an house or a apartment it might take around 3 months, and this is only when everything goes according to the plan and there is no issues or errors at any point during the entire process. Sometimes it might take even a year in the terms of trying to get that right home and deal.
Step 1) Preparing yourself for all the costs
Buying a house or an apartment with only cash can be simpler than financing a home purchase and it might take no longer than 2 weeks, but a lots of people cant afford to do so. The reason behind why buying house or an apartment with only cash is easier and faster is that there isn’t a mortgage which you are taking which again means less paperwork.
Knowing what mortgage is and which one will suit you the best. To avoid some extra cost of the mortgage insurance you take, you’ll typically need to put down at least 20% for the most mortgages.
Step 2) Getting preapproved on your mortgage
A mortgage preapproval for these of you who dont know is a lender’s estimate of how much money you will be able to borrow based on your income, credit score and debt.
The preapproval includes for the most part the type of mortgage you’re approved for which means the loan amount and other terms which are involved in the deal.
Sometimes getting preapproved with more than one lender will help you to compare loan offers so you can choose the best interest rate and terms.
Step 3) Searching for the right house which will suit you
When you get your preapproval then you can move to searching for a home or an apartment.
In this one you need to consider the help of a real estate agent to guide you through the process. Which for most people will be to a big help
Step 4) Make an offer
The moment you find the right house, the next step after that will be to make an offer to the seller.
If you choose to have an real estate agent on your side, then he / she will help you with negotiate specifics with the seller which will be including the price of the home and closing costs
Step 5) Going through underwriting
During the underwriting process, the mortgage lender will for sure confirm your loan eligibility by reviewing documentation of your debt-to-income ratio together with your employment and your credit history.
The entire underwriting process for the most part takes at least a week to be fully complete. But sometimes it can be done in 2-3 days.
Try during the underwriting process to avoid switching jobs or paying bills late. Because this will probably put your mortgage application at risk.
Step 6) Assessing the whole property you want to buy
The whole property appraisal and home inspection typically happens after offer is accepted.
The appraisal assesses the home’s value and is ordered by the lender.
Keep in mind that the time which will take the appraisal itself to be completed depends on the property size. But for the most part it gets completed within couple of hours. However dont get surprised if it takes up to 7 days to review comparable because it happens.
Step 7) Closing on the house
This is the final step. The average time to close the purchase loan is more or less 50 days but it can take shorter or longer time depends on the real estate business in the area, time of the year and location.
When the closing date arrives be sure to put aside at least an hour to review and sign all of the loan documents.
The moment you have signed all documents and the seller have given you all the keys to the house or apartment then you are officially the owner of the house / apartment