Preparing to embark on the journey of purchasing your first home? To ease the process and make it more approachable, it’s beneficial to break it down into manageable steps. Below, we provide a brief overview of the homebuying experience and what you can expect along the way.
Firstly, it’s crucial to acknowledge that the timeline from the initial stages to closing on the house can vary based on market conditions and various factors, spanning from as short as 15 weeks to eight months or longer.
One of the initial steps is to assess your options based on your financial situation. Are you considering applying for an FHA loan, and is your credit in good standing? Having answers to such questions from the outset can help you secure funding and set the stage for a smooth start.
If you’re ready or seeking more information on specific financial aspects, reach out to a mortgage lender for pre-approval. In today’s seller’s market, having a pre-approval letter is essential to demonstrate your candidacy to sellers. Additionally, a lender can assist in establishing your initial budget and identifying any areas for improvement to secure a favorable mortgage rate.
Following approval and with the guidance of a real estate agent, you can begin browsing listings. Whether you choose homes suggested by your realtor or explore online listings, it’s advisable to narrow down results based on criteria such as price range, location, and the number of bathrooms. Maintaining realistic expectations helps streamline the overall process.
Once you’ve identified suitable options, schedule tours to personally assess the properties. While virtual tours can be helpful, a firsthand evaluation is recommended before making a commitment. Prepare for potential competition when making an offer on a home and collaborate with your realtor to negotiate with sellers and refine any contingencies to increase your chances of securing the desired property.
Upon acceptance of your offer, you’ll enter the due diligence period. During this time, schedule a home inspection and appraisal. The specifics of these steps can be adjusted based on your desired pace, but they should not be overlooked.
Subsequently, the underwriting process takes place, which may last a few days or weeks, depending on the complexity of your assets. An underwriter will scrutinize and verify your finances along with property details. Responsiveness to the lender and underwriter is crucial to keep the process moving smoothly.
Finally, the closing stage arrives. After finalizing the loan, both parties review the deal, conduct a final walkthrough of the property, and if everything is satisfactory, the last paperwork is signed, funds are transferred, and you receive the keys to your new home.
For more detailed insights into the homebuying timeline, refer to the accompanying resource.
Infographic provided by The Sherry Riano Team, learn more about VA loans