What to Expect in Getting Home Financing!!!

Mortgage-debtAn extremely common question for many first-time homebuyers to ask is: “How long will it take to buy a home?” Since buying a home is a multi-step process, the answer is “It depends on several factors”:

  • Get preapproved with an experienced lender. This allows the lender a “head start” to getting your financing together. Ideally, you would get approved prior to looking for your dream home to determine your buying power. (i.e. you don’t want to view homes that you cannot afford)
  • Make sure both the buyers and sellers are on the same time table and agree on a closing date.
  • Expect appraisals to take as long as 10 days depending on type of loan. (i.e. appraisers for VA and FHA are not as common as appraisers for conventional loans.)
  • Both VA and FHA loans could require repairs to be completed by the seller that could delay loan approval and a closing. Thus, this does not postpone new home sales.
  • The final step is underwriting. If an underwriter needs additional documents or notices an eligibility problem for a particular loan, the closing date could change.

It is very difficult to predict how long the purchase process will take. Here is a general outline for what to expect by the most popular loan types in the Tampa Bay market:

  • Cash transactions can close as fast as two weeks.
  • Conventional loans typically can close in 30 days.
  • Most VA loans close in 30 to 45 days. I have closed VA loans as short as two weeks on new construction.
  • The process of an FHA loan can take as short as 10 days, and typically not much more than 30 days.

Here is what you can do:

  • Get preapproved (very important)
  • Work with an experienced lender that deals
  • Choose a good agent to tell you what to expect.
  • Select a home in good condition to limit the time to get your loan.  New homes can close faster than resales for a variety of reasons outlined above.

Thinking of buying a new home?  You should consider using a realtor.  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty at 2119 W Brandon Blvd, Brandon, Florida  33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address isalanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

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