This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703.244.6115 or email [email protected]. You may also submit your questions to Corcoran McEnearney via email for response in future columns.
Question: If I’m considering buying a home, when should I start to look?
Answer: Whether I’m working with home buyers or sellers, there are usually a lot of questions about the timeline. It can be hard to know when it’s the right time to start looking for a home, especially if you have a lease ending or are moving from a home that you are selling. It is important to think about the timing of your home search process, and the answers depend on several factors: your current living situation, your moving goals, and your financial timeline.
First, remember that there are typically three to four weeks between making an offer and settlement. Getting final financing approval takes time, as do other various contingency periods. Depending on what works best for both the buyer and seller, it is often about 30 days between the offer date and closing. If you have a date in mind for moving into your new home, you should identify your new home at least a month before that date.
This can be a little scary for buyers who are moving out of rentals and are concerned about the possibility of paying a mortgage before their lease ends. So, another important thing to consider is when the first mortgage payment will be due. When a buyer pays Closing Costs at settlement, it includes the rest of that month plus the following month. That means that whether settlement occurs on July 1st or July 25th, the first payment would be due on September 1st. If settlement occurs any time in August, the first payment would not be until October 1st, and so on…
This can be an important factor for buyers when thinking about their timeline. Having possession of the home for a month or so before the first payment is due could help to give some wiggle room when stopping payments on the house they are moving out of.
The bottom line is, if you have a move-in date in mind, you should plan to go under contract at least 30–45 days in advance. And don’t let fears about overlapping payments hold you back—your first mortgage payment might be further off than you think, giving you a bit of financial breathing room.
Looking for help mapping out your timeline? I’d be happy to walk you through it and create a strategy that fits your goals and lifestyle.
Hope Peele is a licensed real estate agent with Corcoran McEnearney in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many-faceted process of buying or selling a home. Contact Hope at 703.244.6115.
If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email: [email protected] or call 703-549-9292.
Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.
