How Long Does it Take a First-Time Home Buyer to Close?

Pre-approval

• Choosing a reputable lender and submitting the required documents before choosing a home usually qualifies a buyer as pre-approved. Submitting a pre-approval letter with your offer to the home's seller proves that you are indeed qualified to complete the purchase and may allow the loan to process more quickly during the closing period. By obtaining pre-approval, the lender can also help you determine the ideal loan product and the down payment requirements, which may be as little as zero to five percent of the purchase, according to a publication by Colorado State University Extension.
  
  

Choosing a Home

• By choosing a home within your approved price range, your closing process may be streamlined because you are already qualified for the loan amount. A real estate broker will represent your interests as a buyer throughout the transaction and provide you with valuable information about comparable houses that have recently sold in the area, according to the U.S. Department of Housing and Urban Development (HUD). Finding your ideal home for the right price may also ensure a matching appraisal as required by the lender.
  
  

Inspection

• A home inspection is a visual examination of the physical structure and systems, such as heating, plumbing and electrical, according to Mass Housing. The inspection process may take several days or weeks, as the buyer and seller may renegotiate for repairs or replacement items based on the results of the inspection. A professional home inspector is typically employed to perform the inspection and is paid by the buyer.
  
  

Appraisal

• Once the inspection is complete, the lender will usually require a professional appraiser to confirm the value of the home as collateral. The appraiser uses similar comparable homes in the area as a real estate broker does, but examines the data more closely and attempts to pinpoint the exact market value.
  
  

Closing

• The end of the road to becoming a homeowner involves several final steps in the closing process, according to Colorado State University's Extension program. One step is reviewing and signing the final loan documents required by the lender securing the mortgage. Another step is signing and exchanging documents among the buyer, seller and lender, such as title documents and settlement statements. The funds must be received by the seller, and the documents must be recorded with the county to complete the closing process.
  
  

Total Time Required

• The closing process from mutual acceptance to receipt of funds and recording of documents may take anywhere from three weeks to three months. For most first-time home buyers, six to eight weeks is the estimated time necessary to meet the requirements of the lender and fulfill the terms of the contract.