Timeline for closing on a new house

When you are looking to buy a home you must be ready to allocate however much time you will need to find the house of your dreams. You must be ready with your down payment as well. The amount of time can vary due to multiple reasons like the condition of the market and the time of the year which can dictate the housing inventory. In case the inventory is low then it may take some more time to find the right home for you. Finding a home with unique features may also take much longer (like pool, large open space).

There are a few steps that you will need to navigate as you prepare and complete closing on a new home. Below is a timeline you may want to consider so that you will be ready for the closing 30-45 days after your offer letter has been accepted.

Offer negotiation: It generally takes 1-3 days. Once you made an offer the seller review it and give their response. These negotiations can take a few days because at the end the conclusion should include: What is included in the purchase, The closing date, and The moving date.

Home inspection: This step can be done by yourself if you have some knowledge of civil engineering. Else you can appoint an inspector who can do checks at nominal costs and usually takes only one day.

Purchase Agreement finalization: After the home inspection is done the next step is to finalize the purchase agreement between the buyer and the seller. This takes a minimum of 7-10 days.

Home Loan application: Day 14. Now is the time to make an appointment with your loan provider and expedite the loan application process. You need to complete all the paperwork to complete the application and will send it forward for final approval.

Appraisal order: Days 15 to 20: The lender will need an appraisal done on the property to estimate its value. Once the appraisal is completed, the loan is one step closer to being approved. The lender will review the results of the appraisal and determine if the loan is acceptable considering the value of the home. In some cases, additional paperwork is required. In most situations, the lender can evaluate the appraisal and complete the loan application process within the time limits established in the purchase agreement.

Home Loan Approval: Days 25 to 45: Your lender will give you a final loan approval, and you will be considered clear to close on your new property. Once you have received your final approval, all you have to do is to start the countdown until your closing date. Once you have the cleared any obstacles that might be in your way to close, all you have to do is wait for closing day. Your closing is typically 30-45 days after the offer has been accepted. It also depends on the deal that you negotiated with the sellers of the home. A closing day is a big event. Once all of the papers have been signed, and all the checks have been written, the house will be transferred into your name. You now are the proud owner of a new home that is all yours to enjoy!