What Is The First Step of The Home Buying Process?

The first stage in purchasing a house is to get pre-approved for a mortgage. Getting a lender’s pre-approval letter kicks off the procedure correctly. Here’s why:

To start, you must know how much money you may borrow. Narrowing down your search for houses to suitable properties saves time since you won’t look at homes outside your spending budget. (Pre-approvals also help prevent buyer’s remorse due to falling in love with a property that is too expensive or that they can’t afford.)

Second, the loan quotation provided by your lender will show how much cash you will need for the down payment and closing costs. You may need more time to save money, sell other assets, or accept mortgage gift funds from the family. Having been pre-approved for a mortgage shows that you are a serious buyer to your real estate agent and the property seller.

Most real estate agents require pre-approval when showing houses in the higher-end luxury market; sellers only allow pre-screened (and verified) buyers to see their properties. This is designed to keep undesirable “Looky Lous” out and protect the seller’s privacy. Furthermore, sellers are provided additional security from robbers attempting to case a home (identifying security systems, locating expensive artwork, or other high-value personal property).

How Long Does It Take To Buy a Home?

It takes approximately 10 to 12 weeks to buy a house from the start (looking online) to the conclusion (closing escrow). The typical time it takes to complete the escrow process on the house under normal market conditions is 30 to 45 days. Homebuyers who pay with cash can shorten that timeframe by weeks. 

The housing market is susceptible to economic conditions. When the economy is strong, and there are many sales, buying a house may take longer than usual in hot markets with a lot of activity. That’s because several parties connected with the transaction get behind when the business picks up.

A high demand to purchase a home will increase the need for property appraisals and inspections (assuming no other factors affect supply or demand). No more appraisers or inspectors will be available to do the work because a surge in house sales has increased the need for property appraisals and inspections. 

Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.

Franklin D. Roosevelt