Sometimes, the path to homeownership is straight and smooth. And other times, it twists and gets bumpy. No two home buying experiences are the same â and neither are their timelines.
Since purchasing a home is more than just a financial transaction, the unpredictable nature of the process can be a significant source of stress for first-time home buyers. Finding and building a home for oneself and one’s family is an extremely personal process, so it makes sense to want to be aware of the steps involved before taking them on.
How long does it take to buy a house? The average time frame is about 50 days, but there are a number of variables that can affect this estimate. Let’s examine the procedure step-by-step so you can get ready for your special house-buying experience.
Getting a mortgage loan is a crucial step in the process of purchasing a home, which is a big life decision. However, the real question is: How long does it take to get approved for a mortgage? The answer, as with most things in life, depends.
Factors Affecting Mortgage Approval Time:
- Market conditions: A hot market with high demand can lead to longer processing times as lenders are swamped with applications.
- Your financial situation: A strong credit score, stable income, and low debt-to-income ratio will speed up the process.
- The type of loan you’re seeking: Some loan programs, like FHA loans, require additional documentation and can take longer to process.
- The lender you choose: Different lenders have different processing times, so it’s important to shop around for the best fit.
The Mortgage Approval Process:
1. Prequalification:
This first step uses your self-reported financial information to provide you with an approximate borrowing limit. It’s quick and easy, taking only 1-3 days.
2 Preapproval:
This is a more formal step where the lender verifies your income, assets, and debts to provide a preapproval letter This can take 3 days to several months, depending on your financial complexity.
3. Final Approval:
Following your house hunt and offer, the lender will complete an appraisal and complete loan approval. This can take up to 2. 5 weeks.
Tips to Speed Up the Process:
- Gather your financial documents in advance: This includes pay stubs, tax returns, bank statements, and proof of assets.
- Be upfront with your lender about any potential issues: This could include past credit problems, outstanding debt, or employment changes.
- Choose a reputable lender with a streamlined process: Ask about their average processing times and what you can do to expedite your application.
Average Mortgage Approval Timelines:
- Prequalification: 1-3 days
- Preapproval: 3 days to several months
- Final Approval: Up to 2.5 weeks
Additional Resources:
- Quicken Loans: https://www.quickenloans.com/learn/how-long-does-it-take-to-buy-a-house
- Credit.com: https://www.credit.com/blog/how-long-does-it-take-to-get-approved-for-a-mortgage-113416/
Obtaining a mortgage loan can be a laborious procedure, but you can expedite the approval process by being aware of the relevant factors and taking the necessary actions. Remember, the key is to be prepared, organized, and transparent with your lender.
Step 4: Make An Offer (1 â 3 Days)
Work with your real estate agent to submit an offer on a house once you’ve found one you want to purchase. Your agent will run a comparative market analysis at this stage to determine a fair purchase price. They will also assist you with any additional information you would like to include in the offer, like a deposit of earnest money or contingencies.
In some states, the seller may have a deadline to reply to your offer. But in general, sellers typically respond to offers within 3 days. The seller can accept or reject the offer or make a counteroffer, which would restart negotiations. Negotiations typically donât last more than a few days. Additionally keep in mind that the seller is typically just as eager to sell as you are to purchase a home.
Step 7: Schedule A Home Inspection (3 â 10 Days)
A home inspection is a comprehensive visual assessment of the property to identify any problems that may need to be fixed, whereas an appraisal provides you with an estimate of the home’s value. Inspections can uncover red flags.
Home inspections typically take a few hours to complete and happen a few days after contacting an inspector. The inspector will then write a report, which, depending on the property, may take several days to complete.
You may need to negotiate with the seller if the inspector discovers any issues. If there are major issues, you can ask the seller to address them before closing or negotiate a reduction in the purchase price to partially cover the cost of the repairs. These negotiations can potentially lengthen your purchase timeline.
How long does it take to get your Mortgage Approved?
FAQ
How quickly can you get approved for a mortgage?
How long do lenders take to approve a mortgage?
How do you know when your home loan is approved?
How long does mortgage approval take after appraisal?
How long does it take to get a mortgage approval?
When shopping around for a lender for your home financing needs, be sure to ask them what their average time is for getting a mortgage approval. If the lender promises an approval within 1 week, be cautious. If the lender say 2 months, be cautious as well! Take a look at today’s real mortgage rates now.
How long does it take to get a mortgage?
The entire mortgage process has several parts, including getting pre-approved, getting the home appraised, and getting the actual loan. In a normal market, this process takes about 30 days on average, says Fite. During high-volume months, it can take longer—an average of 45 to 60 days, depending on the lender.
How long does the closing process take for a mortgage?
The closing process for a mortgage typically takes 30 to 60 days. This timeline begins when the lender receives the completed application. During this time, the lender will likely order an appraisal to determine the value of the property. They will also review your financial documents and credit history.
How long does it take to get a mortgage appraisal?
The full window — from the time an appraisal is requested by your lender, to when your lender receives the appraisal — is typically five to 10 days. How do you know when your mortgage loan is approved? Typically, your loan officer will call or email you once your loan is approved. Sometimes, your loan processor will pass along the good news.