Mortgage Blog

How long is the home buying process?

June 23, 2022 | Posted by: Jeremy Wilhelm

Thinking about moving this summer? With the current market the way that it is, it can be difficult to understand the timeline of the home buying process from start to finish. During the pandemic, the number of homebuyers soared, resulting in high demand and low inventory. Because of this, the process has taken a bit longer than normal over the past two years. In this blog, we’ll walk you through the timeline from pre-approval to closing.

Step 1: Pre-approval

Unless you are paying cash for the home, getting pre-approved for a loan is the first step. During the pre-approval process, the potential homebuyer meets with a lender to discuss financials, including income, credit history, and financial goals. You will need to provide tax returns, pay stubs, and bank statements. The lender will then send a pre-approval letter, stating how much you’re approved for. This process can take multiple days at a bank, or on the broker side, sometimes under an hour depending on the complexity of the client's situation

Step 2: Home Search

Now that you are pre-approved, it is time to start searching for homes. The search is the longest part of the process. Being in a seller's market, this step may take anywhere from 3 months to a year. Working with an experienced Realtor that can team up with your lender can be the difference in getting into contract sooner by leveraging their local relationships in the real estate community. Be sure to check with your lender on who they would recommend. Teamwork makes the dream work!

Step 3: Submitting an Offer

Now that you have found a home that meets your criteria, you will work with your agent to submit an offer. The agent will write up the offer stating the terms and conditions of the purchase. If working without an agent, this step will likely take you much longer. The sellers will either counter, accept, or decline the offer. The amount of time this step takes is dependent on how your offer is received and how many offers you submit. There is so much verbiage that an experienced and knowledgeable agent can provide and again a huge reason they are so vital in this process. Also, know if you are putting down 20% or more and have great credit, there is a strong opportunity of having the ability to waive an appraisal. This is huge and can be the difference between having an accepted offer or moving on to the next opportunity.

Step 4: Prepare to Close

Once the seller has accepted your offer, it is time to prep for the closing. During this time, you will work with your lender to finalize. The average loan processing time falls between 30 and 45 days. You may also get an appraisal and home inspection during this step.

Step 5: Closing

Once it is time to close, your lender will provide you with a closing disclosure. A closing document provides key information such as interest rate, monthly payments, and costs to close the loan. You will receive this form 3 days before closing. Once you receive the closing disclosure, you will meet with the lender for the closing meeting where you will sign the necessary documents, pay the downpayment and closing costs, and assume ownership of your new home

The home buying process doesn’t have to be long and stressful. At Wilhelm Mortgage, we partner with mortgage lenders in Omaha and beyond who share our beliefs that applying for a mortgage or financing should be fast, simple, and secure. To learn more about the home buying process, visit our website at jeremywilhelm.com.

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