6-Month Countdown to Buying a Home

Photo credit: Towfiqu Barbhuiya

If you are planning on purchasing a new home in the next year, it is not too early to get started!  The following guide of what to do when is not absolute, but rather, suggests a reasonable pace for keeping your home search on schedule and keeping you confident!

6 months out – Right now!

Prioritize the wants and needs of you and any other decision makers in the process (a partner, a parent, kids, etc).  Considerations include (but are not limited to):

• • Location and setting:  proximity to work/school, shopping, friends/family, urban/suburban/rural
  • Number of bedrooms – keep in mind you might want an extra to serve as a home office
  • Number of bathrooms – a full bathroom includes a shower and/or tub; a powder room is just a toilet and sink; a Pittsburgh potty is a toilet in the basement, often in full view!
  • Type of home – do you need one level living?  Large windows?  Older or newer?
  • Outdoor and storage space – do you need space for kids, pets, or entertaining outside? Do you need a basement?
  • Parking – on-street, off-street, attached or detached garage, and number of spaces
  • Any ‘must haves’ and/or ‘nice to have’

5 months out

Review your finances.  Try to get a general sense of:

• How much money you can afford to pay per month on a mortgage
• How much money you will have available for a down payment.  Nowadays, you can often secure a mortgage requiring a down payment as low as 3.5%.   This money will be paid at closing (the end of the transaction).
• Be aware that there will be other expenses during the process, such as your earnest money deposit, home inspections, appraisals, and closing costs.

4 months out

Assuming you need a mortgage to purchase a new home, get at least one pre-approval from a lender.  Pre-approvals will tell you how much you can afford to spend and will demonstrate to sellers that you can get the money needed to purchase the home.  Note that pre-approvals are not good indefinitely, and often expire at 90 days from the date they are issued.  However, lenders can usually provide a new pre-approval with just a phone call.  How much you are pre-approved for may cause you to alter some of your wants and needs.

3 months out

It’s time for us to start visiting homes.  This is the fun part!

45-60 days out

Make an offer on a home.  Again, 45-60 days is the amount of time your lender may need to get everything prepared to offer you a mortgage.  Obviously, if you find the perfect home before or after this time, your timeline may need to shift.

Day 0

Close and move into your new home!  Congratulations!