How far in advance to prepare for a primary residence purchase

5 Replies

I live in Seattle and my lease is up 31 Oct 2021. I would have saved enough for a 20% down payment by then and as rents are extensive in my area, I am better off with a mortgage.

I need advice on a timeline for preparing to purchase, especially what I need to think about now already to set this up.

1. I have already spoken to a bank to get mortgage pre-approval advice and will lodge this in Aug.

2. When do I need to start talking to agents and providing my requirements:

A. I am looking between Seattle Central down to Federal way area

B. First choice, 3 bedroom 2 bath single family and second choice, 2 bedroom 2/1 bath condo.

C. I will be living in the property for a year, fix it up before renting it out and moving on to the next property purchase.

D. Budget would be under $220k

E. Close to public transport preferred

3. How long does it normally take from offer acceptance to closing with a pre approved mortgage?

Is there anything I’m not thinking of that will eat up into my timeline. I’m thinking of actively going out and making offers in September and would definitely need a real estate agent to guide me through that process. Any help here would be amazing.

1. Good, this is the first step and will determine what you can afford

2. Most RE agents first question is, are you pre-approved? do you have a lender?

3. From offer to negotiation to closing will be 2 months. From offer acceptance to closing, a month is pretty standard

@Bevan Daniels

1) Shop around for lenders, ask how much are the origination fees

2) Talk to an agent a few weeks before you're ready to make an offer.

2B) if you plan to rent it after a year the 3 bed 2 bath home might be more appealing to renters.

3) On average it takes 30-45 days.

I can connect you to an experienced agent in Seattle. 

@Bevan Daniels , it is good that you already started talking to a loan officer for the pre-approval. Closing on a deal typically takes about a month. The only issue you may face is having a decent property for that price range. For $220K, you do not have a lot of options and you may need to go to out-skirt areas