For a lot of people, renting over time becomes more expensive than saving up and buying a house. Renting also becomes quite inconvenient in the long run as it does not have a sense of permanency. In some instances, landlords may not be the best of people and hence may create an inconducive environment for their tenants.
Apartments, in general, have limited space and usually do not allow tenants to remodel or make permanent alterations. It becomes even more inconvenient for tenants with families.
These conditions often lead to people deciding to buy their own houses. This allows them to do whatever they may want and do it on their terms. However, buying a house is not instant and usually takes longer than anticipated.
So,How long does it take to buy a house?
Although it may be more or less the same, the length of the process usually differs from individual to individual. This is because of the differences in financial capacity and sometimes because some people take longer than other people to find a home they love.
The process of buying a house involves an average of four stages.
Stage 1: The planning phase.
After the family, couple, or individual have reached the decision to buy a house, the most natural thing to do next is to start planning for it. They will start doing their research in terms of location and the kind of home they would like to purchase. This helps them study the market a bit and understand the trends for the houses they have showed interest in and the average asking price.
They will then determine how much they can afford to spend on purchasing a house. This also helps them determine how long they have to work towards saving for the house and exactly how much they will need. For this stage, individuals usually use the Affordability calculator.
The length of this process will be determined by the level of income the individuals earn and how long it will eventually take for them to reach their target.
Stage 2: Finances
This is an important part of the process as it will determine whether or not you can purchase the house. It is important to calculate what you can afford realistically considering the savings, debt, and other financial obligations you have. The best way to do this is to get preapproved for a mortgage.
At this stage people also determine how much credit they need in order to make the purchase. Other people often apply for loans in order to be able to make the down payment or at least be considered eligible to make the purchase.
If finances are in order, getting preapproved for a mortgage will only take a few working days. However, if you still need to apply for a loan and get approved for it, it may take a while longer. Also, if the amount of credit you are eligible for matches the target budget, the process is shorter. If the amount you are eligible for is not enough, you may have to go back to the drawing board.
Stage 3: Finding the House
This is the time to find the best real estate agent who will help you find houses that match your criteria. They will provide you with the best information with regards to the market and give good advice on which properties to go for. The best part of it is that you do not have to pay them, they get a commission from the seller of the house, thus if you can afford the house, you can afford the best agent.
When you find the house you like, you then place your offer. The real estate agent is in a position to negotiate on your behalf. This means you may end up buying the house for much lesser than the asking price.
Stage 4: Sealing the deal
In the event that the seller accepts the offer, the buying of the house can then be processed. The down payment can then be made based on the terms and the conditions given by the seller.
However, even upon acceptance of the offer, the house still does not immediately become yours. The house has still not been officially sold due to various underlying factors. The sale of the house is only made official upon complete transfer of the title and deed. This process is usually draining and sometimes may take a while depending on the circumstances the seller of the house exists in. During this stage the house is put on the “pending sale” status.
In some instances, the deed is not the only thing holding back the sale. Sometimes there are conditions that are given by either the buyer or the seller that need to be met before the sale can be completed. This is when the sale is called a contingent sale. If all these conditions are met in and on time, the sale can then be completed and the house can be officially yours. The length of this process is entirely dependent on both entities. If they each drag, the overall process will drag.
The process of buying a house is relatively a long one especially because in a lot of instances people think it will not last as long as it does. It can be draining sometimes, especially with all the paperwork involved.
It is a process that takes a significant amount of planning which could also take a long time. It is important to understand that it is not an instant transaction like many other purchases we make on a day to day.
The end result is always a fulfilling one and marks the beginning of a landlord free life.