How long does it take to buy a home? Well, it depends. Research has shown, it takes an average of 4 ½ months to find a new home and an additional 30-45 days to close the deal. But with so many steps involved, the entire process could take much longer if you’re not prepared.
Here’s what you need to know:
Doing Your Research: 1-14 Days
Shorten your home buying timeline by getting an idea of what you’re looking for ahead of time. See what’s currently available on the market and compare it to what you can afford. From here, you can draft a realistic list of wants vs. needs with which your REALTOR® can use to find your dream home.
Partnering With a REALTOR®: 1-7 Days
Now that you’ve done your research, its time to team up with a REALTOR®. Of course, this doesn’t mean just any agent. You’ll want to look for someone with the skills, experience and expertise needed to help you find the right property. For more information, check out our previous post: Choosing an Edmonton REALTOR®: 8 Questions to Ask and Why
Getting Pre-Approved For a Mortgage: 5-8 Days
A mortgage pre-approval is necessary to help you determine how much you can afford while ensuring you’re taken seriously by home sellers. For this reason, it’s essential to get pre-approved before you hit the market.
Hunting For a Home: 1 Week to a Few Months
Now comes the fun part. With pre-approval in hand, its time to head out and find your new home. According to the experts, the average home buyer will visit ten homes over ten weeks before placing an offer – but this is only an average.
Offer and Negotiations: 1-7 Days
Once you’ve found “the one,” it’s time to place an offer. Here’s where having a REALTOR® on your side really pays off as they will negotiate with the seller on your behalf – making sure you get the best deal possible. This may require a little back and forth but typically takes no more than a week.
Getting a Home Inspection: A Few Days to Schedule, A Few Hours to Complete
After making an offer, you’ll want to schedule a home inspection. While some buyers may be tempted to save money by skipping this step, we strongly advise against it. Not only can it give you room to negotiate your offer, but it will also provide you with an “out” should the inspection reveal any deal-breakers.
Finalizing Your Mortgage Loan: A Few Days to a Few Weeks
While a pre-approval represents somewhat of a commitment from a lender, it isn’t a guarantee. There are few other factors they’ll consider before finalizing your loan, some of which include:
Getting Homeowner’s Insurance: A Few Minutes to a Few Days
Your lender will like want to see proof of homeowner’s insurance, indicating the home and its contents are protected.
Getting an Appraisal: A Few Days to Schedule, A Few Hours to Complete, A Few Days to Report to the Lender
An appraisal on the property will verify to the lender that the home is actually worth what the seller is asking / how much you require as a mortgage loan.
Obtaining Title Insurance / Real Property Report (RPR): 1-3 Days
This will protect both you and the lender from losses related to the home’s title or ownership (i.e. title fraud, liens on the property, title defects, etc.). Similarly, an RPR is a mandatory legal document, drafted by a surveyor, indicating the property’s boundaries comply with municipal regulations.
Closing On the Home: 50 Days on Average, 1-2 Hours on Closing Day
This process includes the lender requirements mentioned above, the time it takes to get approved, readying your funds, your final walkthrough, paperwork (your agent will help you with this) and other closing-related details. From start to finish, closing on your new home will likely take a few weeks.
See our previous post: What Exactly Are Closing Costs When Buying or Selling a Home
Let us help you on your home buying journey! Our free home buyer resources will tell you everything you need to know about navigating the Edmonton real estate market, finding your dream home, saving money on your purchase and much more!
Sources: House LogicTerry Paranych on