"My lease is up in 3 months... When do I need to start looking for a home?"
This is a common question that Realtors hear and there are many factors to consider to provide a fairly reliable answer. Let's go through them one by one.
1. Are you financing your home purchase or paying cash?
This matters because, if you are financing a loan (which 80% of buyers in the KC Metro do), the loan underwriting process can take around 30 days to complete. So if your lease is up in 3 months, subtract a full month for that process.
2. Are you buying in an area that is a "seller's market"?
A market that is geared toward sellers will bring buyer competition along with it. Competition may mean that your offer is not selected by the seller and you must repeat the showing/offer process again on another property before you go under contract. Talk with your Realtor about this aspect of the homebuying journey so that you will be aware.
3. Do you have funds for down payment and closing costs?
When you meet with your Realtor about a home purchase, they will walk you through your estimated costs of the purchase. If you do not have those funds, make a plan for how you will obtain them. You may need to wait on a tax refund, work with a friend or relative on gifting some funds, etc. Either way, this is a process that will be discussed with your lender prior to your loan approaval.
