You’ve found the right place if you are wondering how long it takes to buy a house.
This blog explains the timeline for home-buying and provides details about the key steps and the time they usually take.
This article will show you how to find the perfect home and buy it. You can view the infographic or the detailed steps on how to purchase a house.
Do your research and create a priority list of needs vs. desires
Time: 1-2 Weeks
It is important to start by determining what your budget can afford. A simple prequalification or conversation with your bank can help prevent you from falling in love with a house only to discover that you cannot afford it. You’ll be able to establish a baseline for what you can afford and what you can find within your budget. This is just the beginning. There are many formal steps to confirm your mortgage eligibility and guarantee a mortgage.
Identify the location you would like to live in. You can drive around the area and visit local parks or restaurants to get a better idea of the location. Create a list of your needs and wants. What are your top priorities? What are your priorities? What property type will you choose (condo, townhouse or detached)? And what is your lifestyle like? Start looking and do your homework so that you can get a good idea of the property you will be buying.
Locate a real estate agent
Time: 1-7 Days
You will need a realtor to guide you in buying a house. Make sure they are trustworthy and have experience with the type of home you are interested in. A realtor can help you understand the process and help you find listings that match your needs.
After narrowing down your options, they will assist you in finding the right data and information to help you estimate a fair purchase price and negotiate to an accepted offer. The best part is that a realtor can help you buy a house.
Bridgewell is the best place to call if you are looking for a realtor who will represent your best interests.
Pre-approve your budget and get a fixed interest rate
Time: 5-7 business day
Pre-approval is formal than pre-qualification. A mortgage broker will require income documentation to confirm the amount of mortgage a lender will offer you and an interest rate hold.
To get your first documents together and to determine your credit score, meet with a mortgage broker. Make sure you have enough money for closing costs. It is possible to pay off your debts, clean up your credit, and ask for documentation from your accountant or HR department before you can purchase.
Sellers won’t work for buyers who haven’t been pre-approved. It’s too risky! So that sellers know that you are serious and willing to work with them, be prepared.
Shop at home!
Time: From days to months
Your realtor will work with you on the online listing search. Your realtor should also be looking for properties that meet your preferences. If you do find something you like from the listing details online, let your realtor know so that you can begin visiting places together to get a better idea.
You can either book private showings with your realtor or go to open houses. Get a feel for the area and make adjustments to your wants and needs.
Make a decision on the home you want to buy and prepare an offer
It usually takes 1-2 days
After you have seen the properties, you can narrow down your search to find the one you want to write on. To help you make a decision, have your realtor get all necessary documents (if they are available). Also, consult your mortgage broker before making a final decision to ensure that it is within your budget and not flagged by an insurer. If you are putting down less than 20%
Once you have decided on the property that you are interested, your realtor will prepare you with a comparative marketplace analysis. This will show you sold properties and help you estimate the market value of the house. You should not pay too much if the seller has priced it too high. The seller might have listed too low and expect multiple offers. To determine the best offer strategy, find out the seller’s listing strategy and the price they have set based on the market and sales analysis.
You should consider not only the price you initially offered, but also the deposit amount (typically 5%) and any included items, subjects, removal dates (usually 7-10 business days), closing dates, terms, expiry dates/times, and other factors.
Reach an agreement and negotiate
Time: Usually 6 to 72 hours
After your agent has presented the offer, the seller can accept, reject or counter it. If the seller rejects your offer, you can accept, reject or counter. The game of tennis continues until the buyer and seller either accept or reject each other.
The contract will specify an expiry time and date. These are usually 24, 48, 72, or 72 hours. A tight time frame is a good strategy if you’re in a multi-offer situation or need to have the seller make a decision quickly to avoid losing other buyers. If the sellers are traveling or not available, you may end up with no response and a dead deal. Asking the listing agent for a reasonable timeframe and determining the best way for everyone to reach an agreement should be your realtor.
Subject Removal – Do your research on the house
Time: In general, 5-7 business days
After you accept an offer, you can move on to the subject-removal period. This is when the buyer does their due diligence and ensures they are able to obtain financing. You should also prepare for the subject removal period to ensure that your deposit funds are available by the time you remove the subjects. If so,
Below are common subjects, as well as the average review time:
Financing and Appraisal – 2-7 Business Days
Although the lender may approve your income through a pre-approval process, once you accept an offer, the lender will need to approve the property you are buying. They will review your purchase documents and order an appraisal to support the value.
Examine documents (subjects Title, Property Disclosure, Strata Papers, if applicable) – 2-5 Days
So that you can review them at subject removal, the listing agent will send you the title search, property disclosure and strata documents. This is your chance to get to know the property and the land on which it sits, as well as any history or details that may be relevant to it.
You should also review the strata documents if you are buying a condo or townhouse. This will give you a better understanding of how the strata works, their contingency reserve funds, and the general maintenance of the building.
You should also check with the city if you are purchasing a detached house. They may have any records such as a history of grow operations or permits.
Quote for home insurance – in a few days
Although you are not legally required to lock in your home insurance for the subject removal period it is important to understand how much it will cost as an annual expense as a homeowner. To ensure you have adequate unit insurance, it is important to verify the strata’s coverage. The insurance must be in effect by the day of completion.
Inspection – 3-7 Days to Schedule, A Few Hours to Inspect
An inspection clause is one of the topics you might put in. You want an experienced, trustworthy inspector. After the inspection is complete, they will provide a report that you can read to help you understand the condition of the property and any maintenance or upgrades that might be necessary when you move in.
Once you have completed all your due diligence, received documentation and been approved for financing, you can remove the subject and purchase the property.
Send your deposit
Time: Within 24 Hours of the subject’s removal
You can remove any subject from your deposit if you are satisfied with their findings and were able obtain financing.
The deposit is usually 5% of the purchase price. It is good faith money held in trust by the buyer’s agent’s brokerage. This will form part of your down payments at completion. The deal is finalized once the deposit has been received. Now you can prepare for completion.
Get ready for the closing
Time: 2 weeks – 3 months
At the time you make your offer, the contract of purchase or sale will include the completion and possession dates. These dates can be as short as two weeks or as long as a month.
You will need a notary to complete the transaction. They will organize all documentation and facilitate the transfer of funds to the seller.
Close your mortgage agreement
Get your home insurance in place.
Meet with the notary to sign the paperwork. You’ll need to present the closing funds to the notary. Typically, you will meet with them 1-3 days before the completion date. They will ask for the bank draft to cover any down payment funds and closing costs.
Close the deal and get the keys!
Time: Possession usually occurs within 1-4 days of completion
The day of completion is when title passes to you and money for the sale goes to the seller. Congratulations! You are now officially a homeowner.
Passover for keys (possession), is usually the next day. However, it can often take up to 2 days after completion.
What is the average time it takes to buy a house in Vancouver?
The answer to the question “How long does it take for a house to be bought?” is not always straightforward. Every home-buyer’s journey is unique, as well as the time it takes to find the right house. Our experience shows that it takes three to six weeks to shop for a home, one week to conduct due diligence and two to eight weeks to close.
You want to purchase as quickly as possible. This means that you need to get a pre-approval, a good understanding of your budget, as well as a great agent to help you make the transaction smooth. The difference between a great mortgage broker and a real estate agent can be huge. Look for top-level professionals who can help you with this important task.