This is a common point of confusion. Some believe that they can get their dream home immediately; while others think that it will take several months to purchase their house. Now let us talk about the exact situation. Actually the process of buying a house depends on couple of different factors. These factors will either prolong the process or expedite it. Let us see some of factors that actually affect the length of the process.
Firstly, if you really want to find a home of your dreams then you must take out some time and allot as much as possible towards finding the one. The amount of time taken to find your desired home may vary for different reasons. The housing inventory depends on the time of the year as well as the market. If it’s low, then it will take longer time for you to find the right house for you. If you wish to have a house with unique features like a wine cellar or a pool, then this may also accelerate the duration of finding your dream home. Hence it can be said that your personal timeline and your motivation will impact the shopping process of the house. So try to take as much less as possible time to shop for your house before ratifying a contract.
Now comes the 2nd factor, which is contract-to-close. There is a time period after ratifying the contract on your house called the contract-to-close. This part can have two timelines, one for the cash purchase and another for the financed transaction. A cash purchase may reasonable take less than two weeks and hence is quicker than the other transaction. When we are talking about financed transaction which may involve mortgage, then the time duration may increase, due to the additional time taken to complete all the legal formalities, associated with mortgage, from both the sides.
So, if you are really looking to buy a house then on an average you need to spend 30-60 days for shopping the house, 14-60 days from ratifying a contract to contract-to-close and probably 15-50 days before your 1st mortgage payment is due. Hence it can be concluded from all the above factors, that the legal procedures actually do not vary much for different persons. The time gap will be hardly of 10 to 14 days. What varies the most is finding and getting the house of your right choice. So basically the shopping time for the house varies, which can be as less as 15 days, or as long as 5-6 months.
Why strengthening your credit score is important?
Strengthening your credit score is very much important because the higher your FICO score the better interest rate you will qualify for, especially, if you are purchasing the house on credit or mortgage. It may seem to you that how 0.5% or 0.7% of mortgage interest can matter to you. But the truth is it actually matters you tens of thousands of rupees, which is a huge amount. Nowadays due to various online facilities, you can get to know your credit score for free, or your lender may also get you a free copy.