Looking to buy first home this summer in Houston, my current lease ends on June 30th and shooting to get keys to new place with about a month left in my current lease. How long does it typically take from putting in an offer to getting keys? And with interest rates dropping I'm not trying to lock in a rate super early but should I go ahead and get pre-approved? (And would that lock me in to that lender?)
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Last: 2 yr ago by Red Pear Realty
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The average contract signing to closing duration in Houston is 36 days. The problem is, depending on your criteria, you may need more time to search.
You won't lock in a rate and a lender until after you have a signed contract, but it is a good idea to speak with lenders earlier than contract execution to help kick off the process. Your credit pull with lenders is typically good for about 90-120 days, and as long as you get quotes from lenders within about a four week period, they all count as one pull on your credit score. I can definitely recommend some great Aggie lenders.
I'm located in Houston and would love to help you with your search. I wrote a book for first time home buyers like yourself that explains the whole process from start to finish in half to single page snippets so that it's a quick and easy read. It's called, "Buying Your First Home in Texas." If you shoot me a PM, text, or email (my contact info is in my profile), I'll send you a PDF copy.
And finally, we split our commissions with our buyer clients at Red Pear Realty. Typically that amounts to half of 3%, or 1.5% of your gross purchase price. So if you buy a $400,000 home, we will rebate you $6,000 (assuming the seller is paying 3%) to use at your discretion at closing. Most folks use it for closing costs or to buy down their mortgage rate, or to reduce their purchase price.
Happy to help.
You won't lock in a rate and a lender until after you have a signed contract, but it is a good idea to speak with lenders earlier than contract execution to help kick off the process. Your credit pull with lenders is typically good for about 90-120 days, and as long as you get quotes from lenders within about a four week period, they all count as one pull on your credit score. I can definitely recommend some great Aggie lenders.
I'm located in Houston and would love to help you with your search. I wrote a book for first time home buyers like yourself that explains the whole process from start to finish in half to single page snippets so that it's a quick and easy read. It's called, "Buying Your First Home in Texas." If you shoot me a PM, text, or email (my contact info is in my profile), I'll send you a PDF copy.
And finally, we split our commissions with our buyer clients at Red Pear Realty. Typically that amounts to half of 3%, or 1.5% of your gross purchase price. So if you buy a $400,000 home, we will rebate you $6,000 (assuming the seller is paying 3%) to use at your discretion at closing. Most folks use it for closing costs or to buy down their mortgage rate, or to reduce their purchase price.
Happy to help.
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Prequalification with a lender doesn't obligate you to that lender. My email is on my profile and we'd be happy to provide that for you without obligation.
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The typical contract is 30 days long, but sometimes sellers want more time or even a lease back where they stay in the house for a little longer after closing. So like most things in real estate in can depend. As for starting the process I always suggest my borrowers to just start with a conversation just to get an idea of options, basic numbers etc. You can formally apply down the road.
Also, very important for first timers, do NOT attempt to shop for rates until you are MUCH further into the process with the best time when you have a property under contract.. Rates change multiple times during a day much less day to day, week to week and month to month. I have seen several people lately not understand that and with dropping rates not at all comparing apples to apples and paying above market rates.
Finally, as for timing on your lease, a mortgage payment is paid in arrears. So, if you were to close on a mortgage in May, your first payment would not be due until July. Close in Jun, first payment in Aug etc.
Also, very important for first timers, do NOT attempt to shop for rates until you are MUCH further into the process with the best time when you have a property under contract.. Rates change multiple times during a day much less day to day, week to week and month to month. I have seen several people lately not understand that and with dropping rates not at all comparing apples to apples and paying above market rates.
Finally, as for timing on your lease, a mortgage payment is paid in arrears. So, if you were to close on a mortgage in May, your first payment would not be due until July. Close in Jun, first payment in Aug etc.
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"How long does it take from putting in an offer to getting keys"……
Get a realtor, we used Jamie w/ red pear, would absolutely recommend.
But lots of things that effect this question outside of lender, etc. The market of the are you're looking is probably the biggest component. From our first offer to when we got keys was 9 or 10 months…..and I can't remember exactly but think 8 offers. Most of which were over asking.
Get a realtor, we used Jamie w/ red pear, would absolutely recommend.
But lots of things that effect this question outside of lender, etc. The market of the are you're looking is probably the biggest component. From our first offer to when we got keys was 9 or 10 months…..and I can't remember exactly but think 8 offers. Most of which were over asking.
New construction can give you more certainty on close date time frame too! If you are considering building, then it takes about 5-6 months to complete, but most builders always keep a little inventory in process so that if you want something sooner you can! Lots of great reasons for a first time homeowner to use new construction.
One of the bigger shocks when buying a home was that rates only lock for 30 days. Kind of a strange deal of how prevalent it is for people (myself included) to get that wrong.
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Rates can be locked for various durations, typically in 15 day increments, and I've seen them up to 60 days personally (although google says as high as 120 days). 30, 45, and 60 are most common. But they all come with a cost that ultimately gets passed along to the buyer (the longer the duration, the higher the cost). Some lenders here can probably add more color.
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