Putting down roots with a home of your own is exciting, and it’s understandable if you are anxious to move through the process as quickly as possible. Perhaps you’re wondering how long buying a house takes in Maryland.
Well, the timeline to purchase a home depends on a variety of factors. Let’s break it down so you’ll have a clear picture of how long each step typically takes. This will help you manage expectations and avoid stress as you move through the process.
Step 1: Mortgage Pre-Approval [1-2 Business Days]
Before you start searching for the perfect house, you’ll want to obtain mortgage pre-approval. This is when your lender does a preliminary review of your finances and gives you an estimate of how much you qualify to borrow. Mortgage pre-approval helps you focus on the homes you know you can afford.
Mortgage pre-approval can usually be obtained in 1-2 business days. Once complete, you’ll receive a mortgage pre-approval letter that lets real estate agents and sellers know you’re a serious buyer. Mortgage pre-approval is valid for 120 days. If you need more time, you must apply for mortgage pre-approval again and submit updated financial information.
Step 2: Searching For A House [2 Weeks To Several Months]
Searching for a house isn’t something you should rush. You’ll want to tour as many homes as possible to get a feel for the market and to compare features, prices, and neighborhoods. While unique for each buyer, the process typically takes anywhere from two weeks to several months. However, things may move faster in a competitive market where a delay in making an offer could result in missing out on a property you love.
It’s best to work with a real estate agent who understands the local housing market when you are home shopping. Your agent will also help negotiate and handle communications with sellers and their agents. You may need a few days to read online reviews and talk to prospects before deciding on an agent.
Step 3: Making An Offer [1-2 Weeks]
Once you’ve found the perfect home, the next step is to make an offer. Your agent will help you determine a competitive offer and submit it on your behalf. The seller typically responds within 1-2 days and can accept, reject, or make a counteroffer. The negotiation process may take 1-2 weeks or longer, depending on how quickly the seller responds and the number of counteroffers made.
In a competitive market, multiple buyers may bid on the same home, making the process more challenging. To stand out, you may need to strengthen your offer. However, there's always a chance another buyer could outbid you, requiring you to start the search again for a different house.
Step 4: Entering The Contract Phase [30-45 Days]
Once your offer is accepted, you officially enter the contract phase. In this step, both parties work to fulfill the conditions of the contract. You will sign a purchase agreement that outlines the terms of the sale and pay an earnest money deposit, which is typically 1-3% of the purchase price. This money is held in escrow and is later applied toward your down payment or closing costs.
The contract phase typically lasts 30-45 days but may be longer. For example, if the home inspection reveals issues, additional time may be needed for the seller to finish repairs.
Step 5: Completing The Inspection [1-3 Weeks]
The home inspection is part of the contract phase and is necessary to ensure the property you’re buying is in good condition. Your real estate agent will schedule an inspection with a licensed home inspector 1-3 weeks out. The inspection typically takes a few hours to complete.
The home inspector will examine the property’s roof, foundation, plumbing, electrical system, HVAC, and other parts of the house for damage, infestations, and other issues. After the inspection, you will receive a detailed report outlining the inspector’s findings.
Step 6: Securing Financing [30-45 Days]
Some homebuyers prefer to wait until the home inspection is finished to secure financing in case major issues are revealed, but this can also delay the loan process. Purchase agreements typically include home inspection contingencies that allow buyers to walk away from the deal if there are significant problems.
If everything checks out, you will need to advance your preapproval application to a full application. Formal loan approval requires a more in-depth review of your finances and a hard credit check.
Securing the financing for your home is typically part of the contract phase, and may take anywhere from 30-45 days to complete, although it can be both shorter and longer.
During this time, your lender will conduct the underwriting process to verify your financial information and order an appraisal to confirm the home’s value. Home purchase agreements typically include financing contingencies that allow buyers to back out of the contract if they are unable to secure financing within 30-60 days.
Step 7: Closing On The House [3-7 Days]
The home closing concludes the contract phase. After the mortgage underwriting process is complete, a day will be scheduled to finalize the deal. This is referred to as the “closing day” and is typically scheduled 3-7 days out, but it may take longer. In Maryland, the closing is typically handled by a title company.
Before the closing day you’ll complete a final walkthrough of the house to ensure any agreed-upon repairs have been completed and to confirm the house is in the condition you expect. During the closing you’ll review and sign all of the paperwork, the funds will be transferred, and you will be handed the keys to the house as the new owner.
Ensuring A Smooth Mortgage Process
So, how long does it take to buy a house?
It can take anywhere from a few weeks to a few months, depending on how long it takes you to find the perfect home, the underwriting process, and other factors. Potential delays, like needed repairs, title issues, or requests for additional information from your lender could extend the timeline.
If you are ready to take the next step, our handy mortgage checklist can help you stay organized as you prepare to apply for financing. It can ensure you have all of the documents your lender will need for a smooth mortgage process to prevent delays.