The length of a home buying process is different for everyone and can take anywhere from six months to two-and-a-half years before actually moving into your new home. The average buyer spends 4-to-5 months in the consideration phase, 30 – 90 days shopping, less than a week to make an offer and negotiate, and about 30 days to close. The length depends on how well you prepare, and if you have the right help along the way. If you’re new to home buying, consider following our step-by-step guide which breaks down the overall process of buying a house.
Before house-hunting ever begins, it is good to know just how much house you can afford. By planning ahead, time will be saved in the long run and applying for loans that may be turned down and bidding on properties that cannot be obtained are avoided.
The old formula that was used to determine how much a borrower could afford was about three times the gross annual income. However, this formula has proven to not always be reliable. It is safer and more realistic to look at the individual budget and figure out how much money there is to spare and what the monthly payments on a new house will be. When figuring out what kind of mortgage payment one can afford, other factors such as taxes maintenance, insurance, and other expenses should be factored. Usually, lenders do not want borrowers having monthly payments exceeding
What to learn more about the home buying process? Check out our Buyer’s Checklist, click here.
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