We'll look at a normal sale, not a short sale, because they currently average 4 months after a contract is ratified, and are very unpredictable. Working backwards from your preferred move date of December you have:
- 30 to 45 days minimum to settle from the day your contract is ratified. (Ratified means that all parties are in agreement, have signed and initialed everything and the contract has been delivered.) That puts you at needing to get a property under contract no later than mid-October, preferably end of September in case there are any snafus with repairs or issues to be cleared up.
- one to two months to look a properties to pick one. If you are picky, or in a low price range, this can take longer. That means you need to start looking seriously at properties by the end of July or first of August. So you're right on with your estimate there.
Of course you need to get your lending lined up and find a Realtor before all of this. A good Realtor has at least one lender that they prefer to work with because they give good customer service and are super easy to work with. (We already talked about rates in your other post)
You'll want to get a feel for what the market is doing, and the spring market is coming up, which is already beginning to look like it's going to be crazy busy. That's probably going to drive prices up a little for the time you'll be looking to buy, so you'll want to have your Realtor set you up with an auto search that will send you listings to help you watch the market. I would recommend that you go ahead and pick a Realtor now to start that working relationship. It's never too soon to start that, plus they and their lender may also be able to give you tips on things to work on in your credit between now and July to help you get a better loan when you're ready.
RealtorÂ® in DC, MD and VA
Keller Williams McLean-Great Falls
It is good to get your search started early this can help you narrow down the available selections and what best fit your needs.
If you are looking for a home under 110k in the city, it will normally be distressed i.e. a short sale or REO property. A short sale transaction can take some time and this will be determined by a number of factors what type of short, agent, who is providing 3rd party etc. in this instance I would recommend you start looking may or june if you are looking to purchase a short sale. Of course, a short sale can sometimes close quickly but also be prepared to wait as well so i always suggest 6 months.
A bank owned property you can close quickly and sometimes offer favorable financing.
Your standard sale, your time frames can be negotiated between you and the seller.
It depends on the house. If its a short sale it could take 3-6 months if not more. But if it is a regular sale and every party involved in the transaction-lender,title company,appraiser,home inspector,listing agent,buyer agent,home owner,home buyer etc are doing everything that they are supposed to do and need to do,it shouldn't take no more than two months. AGAIN that is if everybody involved do exactly what needs to be done to close the transaction.
And you are right being a first time home owner,you can get help with downpayment and closing cost help. Email at DChomesforsale@gmail.com and I can recommend some for you. Good luck to you in the purchase of your brand new house. Take care.