How long it takes to buy a house: A purchase timeline from preapproval to closing

Buying a house isn’t a full-on sprint – it’s a steady marathon. But the race is definitely worth running, as each step moves you closer to finish line: the front door of your new home.

There are multiple stops along the way from preapproval to closing, and your timeline can vary wildly based on factors like market conditions, the type of home you’re looking for, and how ready you are to make this big step.

Preparation and understanding the process will help make everything fall into place sooner, and before you know it, you’ll be settling into your new space.

The quick answer: How long does it take to buy a house?

It’s natural to want to move in the moment you find that perfect place, but reality is that inspections, negotiations, and paperwork take time. Depending on your situation, the process can stretch from a few months to up to a year – but every step brings you closer to that prized place.

There are several factors to consider along the way – first, you have to find the right place. Then you must consider all sorts of variables, including price, location, size, the neighborhood, and much more.

Then there’s the nail-biting process of making an offer, receiving a potential counteroffer, going back and forth, and then – hopefully! – finalizing the deal. Lastly, the closing process, including inspection, signing the final documents, and more, takes some time, as well.

If you already have a place to stay during the process, fantastic. If not, temporary housing can bridge the gap while you work toward your goal.

This all may feel like a lot now, but every step is vital to getting you the keys to your dream home.

Home buying timeline: Steps to purchasing a home

Here are the steps you’ll need to take to buy a house.

1.    Save for a down payment: Ideally, the very first step of buying a house began well before you move into the purchasing process. It helps your cause to have a down payment saved – the higher your down payment, the lower your principal (and the stronger your position as a buyer). Think of it as laying the foundation for your future home.

2.    Obtain a mortgage preapproval: Being preapproved can make you a more attractive buyer than someone who may not have done their homework. Plus, it gives you peace of mind to know exactly what you can afford.

3.    Search for your dream home: With your financial bases covered, the fun part begins! Spread the word, post on social media, and even take a stroll through neighborhoods you love. You never know what hidden gems you might uncover.

4.    Make the offer: Found the one? Now you’ll need to put together an offer. This can be a complicated process, but now it’s time to craft something that reflects both strategy and enthusiasm. Steps include:

• Strategize: Consider the market – hot neighborhoods might require stronger offers, while homes that have sat vacant for a while might give you some room to negotiate. Also consider contingencies and earnest money upfront.
• Make the offer: You and your real estate agent will put it in writing and send it along. Here’s where your patience and hard work pays off.
• Negotiate: Once you’ve made your offer, The seller can accept it, reject it, or make a counteroffer. If that happens, your agent can guide you through the back-and-forth until you (hopefully!) seal the deal.

5.    Complete the mortgage application and close: Finalize your application – as noted before, this step will be much easier if you have been preapproved. We know that closing can feel like you’re making your way through a dense forest of paperwork, but remember that every signature is a move toward that goal.

As you go through the process, keep in mind that each step has its own timeline – from just a day or two for preapproval to months for home hunting (and even longer if you’re saving money for a down payment). You can keep things moving by planning ahead and getting your documents in order beforehand. A little preparation goes a long way toward making the journey smoother – and getting into your new home faster.

Step 1: Save a down payment and prepare finances (a year)

Saving for a down payment before you begin the home buying process provides a solid financial basis that makes the rest of your journey faster – and far less stressful.

Also, pull together your financial documents – income records, bank statements, and the like – to review your income, savings, and debt to determine what you can afford to put aside. (This is a complicated process, so keep in mind that it might take some time and give yourself a break as you do it.)

Here’s what you need to do:

• Organize your paperwork, including: your W-2s, tax returns, bank statements, and pay stubs.
• Find your credit score and review your credit report — you can learn more about your credit score and why it’s important.
• Put together some of your savings for your down payment and closing costs.
• Get a picture of how much house you can afford by experimenting with various mortgage calculators, such as this one from Rocket Mortgage^®.
• Throughout this process, be sure to avoid new debt — this can raise your debt-to-income ratio (DTI), which will affect your chances of getting your dream house.

Step 2: Get a mortgage preapproval (1 or 2 days)

Unless you’re paying with cash, the stages of preapproval are a key part of the home buying process.

When you do this, lenders will review your income, credit, and debt to determine how much home you can afford. Note: This isn’t the same as prequalification, which is more of an early stage for budget planning. Instead, preapproval is an official loan estimate that lets you know exactly where you stand.

To strengthen your application, be ready to share pay stubs, bank statements, and tax documents. The more paperwork you have, the stronger your position as a buyer.

Best of all, a preapproval letter shows sellers you’re serious and financially capable. It’s a simple step that can be highly beneficial when you find your dream home.

What is a Verified Approval letter?

At Rocket Mortgage, we take your approval application very seriously. During our Verified Approval process¹, we conduct a detailed analysis that includes an underwriter review of your income, assets, and credit. This meticulous evaluation provides a stronger indication of mortgage readiness than automated preapprovals.

Not only can this help you move into your dream house, but we also offer a $1,000 guarantee if approval doesn’t lead to closing through no fault of the borrower. Learn more here.

Step 3: Shop for a home (6 months to a year)

Now that you’ve got your details handled, you’re ready to start doing the actual home hunting – which can be the longest step in the process.

Don’t be discouraged, though! Sign up with a trusted real estate agent who knows the area you’re interested in, and that can help accelerate your search. Note: If your preapproval is already arranged, it can also help your agent know which homes are within your budget.

It can also help if you’ve looked into the best markets, neighborhoods, school systems, and other local amenities to determine where you want to live. That way, you won’t be starting out at square one.

Step 4: Make an offer on a home (less than 1 day)

So you’ve found your ideal home … now what? For starters, work closely with your real estate agent to put together a solid offer letter. Attaching a preapproval letter or proof of funds, along with your offer letter, only strengthens your position. Keep in mind that sellers may accept, reject, or counter the offer, and let your agent guide the negotiations.

Step 5: Complete the mortgage application process (about 1 month)

If the owner accepts your offer and signs the purchase agreement, the mortgage application and verification process officially begin. Most lenders take 30 – 45 days to do the underwriting, schedule appraisals, and finalize the loan.

Next comes the home inspection, in which a professional inspector evaluates the property, identifies needed repairs, notes potential issues, and provides an overall assessment of its condition. (This checklist provides several of the elements an inspector will be looking for.)

Note that inspections are separate from appraisals and protect buyers from unexpected costs. Remember that buyers can still walk away if the home needs unaffordable repairs, though your earnest money may be at risk. If you back out of the deal for a reason that’s not detailed in your contingencies, the seller gets to keep your earnest money.

The appraisal

Before you close on a home, lenders typically require an appraisal to confirm the home’s market value. Appraisals differ from a full inspection in that a home appraiser isn’t looking for specific problems – rather, they’re looking for an overall value to assign the property based on size, location, condition, and other factors.

There are several types of appraisals, including:

• Desktop appraisal: This is conducted from the appraiser’s computer and uses only public records, floor plans, and comparable properties.
• Hybrid appraisal: This combines a virtual and in-person visit which largely uses photographs from the listing or home inspection as well as detailed measurements from the property.
• Drive-by appraisal: This is basically what it sounds like — drive-by appraisers don’t enter homes, they just look at the exterior then incorporate data such as market conditions, comps and public records into their assessments.

Underwriting

When your loan moves into the underwriting stage, that means lenders are verifying the details of the transaction, including income, assets, debts, and appraisal results. From there, the underwriter can approve, deny, or request additional information. If you’re asked for more documentation, respond promptly – every quick reply helps keep the process moving and gets you closer to moving day.

Step 6: Close on your loan (about 1 week)

Now for the last step of the process: closing on your loan, which begins with a property appraisal and approval of your mortgage underwriting. The closing begins when the lender issues a Closing Disclosure, which outlines loan terms, the loan’s annual percentage rate (APR), and closing costs.

This is a critical document, so be sure to carefully go over the Closing Disclosure during the 3-day mandatory review period. When you’ve done all the background work, you’ll have the closing meeting, which involves signing loan documents, paying the down payment and fees, and officially taking ownership of your property.

The bottom line: Your home buying timeline can vary

It might be feel like a lot now, but every step is progress – and with preparation, the process can be smoother than you think. Take care of the details beforehand and be meticulous when you get your documentation together. Find an agent you can trust, and follow the steps we’ve detailed to streamline the process.

Lastly, keep this in mind: patience pays off. The effort you put in now will lead to more than just a shiny set of keys – a home is the setting for years of memories and dreams. With the right amount of preparation, your dream home isn’t just possible – it’s right around the corner.

Ready to start the loan preapproval process? Get in touch with the Home Loan Experts at Rocket Mortgage.

¹Participation in the Verified Approval program is based on an underwriter’s comprehensive analysis of your credit, income, employment status, assets and debt. If new information materially changes the underwriting decision resulting in a denial of your credit request, if the loan fails to close for a reason outside of Rocket Mortgage’s control, including, but not limited to satisfactory insurance, appraisal and title report/search, or if you no longer want to proceed with the loan, your participation in the program will be discontinued. If your eligibility in the program does not change and your mortgage loan does not close due to a Rocket Mortgage error, you will receive the $1,000. This offer does not apply to new purchase loans submitted to Rocket Mortgage through a mortgage broker. Rocket Mortgage reserves the right to cancel this offer at any time. Acceptance of this offer constitutes the acceptance of these terms and conditions, which are subject to change at the sole discretion of Rocket Mortgage. Additional conditions or exclusions may apply.