Of course no two home purchases are alike but here is a general home buying time line. It doesn't matter whether it is a Plymouth condo or a Commerce Twp lake front home.
The key to the whole purchase process is to jump and get your part done as quickly as possible. Drop what you are doing and get it done. Then you will probably wait and wait. But that is why you rush around and get your part done.
If you delay getting your part done then the whole process is delayed. The other party will add to the delay because there is "no rush".
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ACTION |
TIMELINE |
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Offer is submitted to listing agent |
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Counter offer/ acceptance of offer |
Sometimes you hear back from the seller in hours, other times it is days. Patience is the key here. But you want to respond back quickly if you want the house. Usually you want to keep the negotiation going quickly and smoothly. Sitting back and thinking about the counter offer can sometimes sink the negotiations. |
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Start mortgage |
Same day you get acceptance of the offer - you should have all your documents ready prior to submitting your offer to the seller |
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Set up inspection |
Same day you get acceptance of the offer - must be done within 7 days of signing by seller. Delaying the inspection delays the appraisal, which then in turn delays the mortgage. Get the inspection done as quickly as possible, because if there are issues and negotiations needed it could slow everything up by a week or more. |
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Get utilities turned on |
Call utilities to turn on for inspection and appraisal. A FHA appraisal requires the furnace and the hot water to be working. |
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Inspection |
Within 7 days of signing by seller and bottom line or within the guidelines of the contract. |
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Inspection results |
You have 2 days of the inspection to put in writing what is wrong, what you want fixed, or whether you want out of the contract. |
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Seller responding to your inspection results |
Seller has two days to respond to fix the issues, or reduce the price after we send them inspection issues in writing |
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Appraisal |
Mortgage company orders it after inspection passes . So a delay in inspection will delay the mortgage process. |
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Wait for mortgage |
Can be up to a month or more.. But if mortgage company asks for something rush and get it back to them. A two or three delay by you can turn into a two week delay by the mortgage company. |
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Shop for insurance |
About 2 weeks in, shop for insurance, pay for it and let your mortgage company know the company and contact number. We need to know closing date for insurance company to know when to start the insurance |
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Clear to close |
Once the mortgage has been completed the mortgage company issues a clear to close and calls both the Realtors to schedule the closing |
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Set the closing |
The listing agent and the buyer's agent talk to their clients and arrange with title company a date and time convenient to all |
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Lender sends documents |
Lender sends documents to the title company, title company does the HUD, and the title company tells the loan officer the final number. Loan officer calls you with the final number to bring in a cashiers check to the closing.. |
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Set up the utilities in your name |
The days before closing set up utilities to switch to you on the day of closing. |
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Final Walk Thru |
On the day of closing you walk thru the house to make sure no damage has been done to the house |
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Closing |
Sign all the mortgage documents- takes about 1 - 1 ½ hours on the average |
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Congratulations you own the house |
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I hope this home buying timeline helps you understand what happens and when.
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Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
Russ - Great timeline. This is beneficial to educate buyers .Thanks.
Great information Russ. Here in GA it is a little different but not much. We are a Attorney close state not a Title company so we schedule closings as soon as we have a ll the signed documents so they can start Title search.
Very good list and idea to give to buyers so they may understand the process. Thanks for the post.
Great List, I will have to incorporate this into coorespondance with buyers.