Buying a house is a major milestone that’s both exciting and long drawn. Especially if you’re a first-time homebuyer in Palm Beach, be prepared for the time it takes to complete each step in the home buying process. The timeline can vary from a few weeks to several months. And in the case of saving up for the down payment of a home, it can take years.
As a quick overview, below is the typical timeline of the homebuying process:
1-2 WEEKS
Organizing your finances and finding a real estate agent
The first step in preparing to purchase a home is having a clear idea of the type of home that you want, the location, and your budget.
The next step is taking an objective look at your finances including credit score, down payment, closing and moving-in costs, and debt-to-income (DTI) ratio.
This is also a good time to look for a trusted real estate agent. Ask for referrals from personal connections and conduct a thorough interview. Your agent should help you simplify the process and assist you in the negotiations.
1 to 2 WEEKS
Getting pre-approved for a mortgage
For a seamless process, applying for preapproval on a mortgage is highly recommended. Depending on the lender and the mortgage type, the requirements and duration of approval vary. Some documents required include tax returns, bank statements, and payslips. The lender then issues a preapproval letter as a guarantee of financing for your new home. Bear in mind that the preapproval is good for only 90 days.
3 MONTHS to 1 YEAR
Listing your requirements, going for showings, deciding on a home to buy
With a pre-approved mortgage and a trusted real estate agent, you are now ready for home shopping. First, envision your new home. Create a list of what you need (non-negotiables) and what would be nice to have (optional features and amenities). For some, needs and wants may include access to good schools, a diverse community, maybe a pool, or a large lawn. With your ideal home in mind, visiting the actual homes is the next step. Depending on your availability, some properties also offer virtual tours.
FEW DAYS TO A COUPLE OF WEEKS
Submitting offers and negotiating terms
Once you find a property you wish to purchase, it is time to make an offer. The seller will then accept, decline, or negotiate. Along with the price, other terms that usually fall into negotiations are contingencies, repair costs, move-in dates. Your agent should help you make the most value for your money and keep your needs their highest priority.
1 to 2 MONTHS
Having your loan approved
With a pre-approved mortgage, getting a loan approval should be a swift process. Once you have submitted all the documents and the lender has completed the underwriting process, your loan is approved. This kickstarts the closing process.
1 to 2
MONTHS Closing
With everything in place, all that’s left is to wait for the completion of the closing process. Typically, this includes:
- Home appraisal: a third-party assessing the overall value of the property
- Home inspection: a third-party hired to inspect the condition of the property and to locate potential issues
- Final closing: when you have fixed your signature, handed over the down payment, and closing costs, and have submitted all the paperworks required, the home purchasing process ends and you are now an official homeowner!
To keep the homebuying process on track in South Florida, look to the experts of Florida Exclusive Living. Call 954.644.9118 or contact them here to get started.