Renting typically comes with an annual lease, giving you plenty of time to plan your renewal or find a new place before you’re under pressure from your landlord.
Homebuying, on the other hand, is not always so clear-cut. Depending on the house you’re buying, your financing method and the seller, timelines can vary.
Are you thinking of making the jump from being a renter to being a homeowner? Here’s what to know about timing your purchase.
The type of home you’re buying matters. When you’re buying a previously owned home, you can expect things to take a month or two from the time you make an offer to the time you close. Building a custom home, on the other hand, takes just under nine months, according to the National Association of Home Builders.
Your payment method has an impact. If you’re buying in cash, the process can move quicker, as there’s no bank or lender involved. If you’re getting a mortgage, you can usually expect the process to take between four to six weeks. (It varies by lender and loan program.)
The seller could delay things. When you buy a previously owned home, a lot of the timing will come down to the seller and their moving process. Sellers may want you to speed up or slow down your timeline based on their situation — but you may want flexibility from them, too.
There may be costs if the timing is off. If you’re unable to time it well, you may need to go month-to-month on your current lease or break your lease early. Either one of these options could end up costing more than your regular monthly rent.
If you’re ready to become a homeowner, let’s work together to help ensure that you can stay on track for a timely and cost-effective home purchase.
