Buying a Home

Time to find your own personal real estate wizard! Your Realtor will be your trusted guide through the home buying process, answering all your questions and showing you the ins and outs of the market. Your Realtor will help you by explaining the process and what to expect, providing you with market insights, and helping you find the perfect neighborhood that fits your lifestyle.

They can also give you recommendations for lenders and assistance programs you may qualify for, as well as contractors and neighborhood insight you cannot find by Googling!

You want an agent whose #1 priority is finding you the best home for you and your situation, knows that can change at any time during the process (even while you’re at the closing table!), and has a proven track record of doing this for others.

Unless you have enough cash to cover the purchase price plus closing costs (we say estimate 5-8% of the purchase price), chances are you will need a loan to buy a home.

Have student loans? Credit not great? Don’t have a lot of cash to spend? Want to buy a fixer-upper but need funds? That’s okay! Lenders are pros at working with a variety of different financial situations and can help you find the right program for you. Just remember - not every lender participates in the same programs, so it’s critical to find someone who knows what your homebuying goals are with the resources you have right now.

Your Realtor can provide you with local recommendations with lenders they’ve successfully worked with, or you can do your own research to find lenders. Just like with your realtor, it’s important to find someone who’s responsive. Lots of things can happen during the homebuying process, and your lender should have your back.

Once you’ve provided your lender with your financials, they will generate a pre-approval / pre-qualification letter which states 1) the sale price 2) the loan amount, 3) the loan term, type and program, and 4) the interest rate. This letter is absolutely necessary to putting in an offer, so make sure you get one!

Now that you know how much you can spend on a monthly basis and worked with a lender to get a pre-approval letter (or, if you’re buying with cash, have proof of funds), it’s time to start the fun part - house searching.

Work with your Realtor to create your dream home wish list! They will help you find the perfect homes that match your preferences and schedule viewings. Your Realtor will help you by providing you with a list of properties that match your criteria, scheduling viewings, and providing valuable insights about the homes and neighborhoods you visit. Ask about neighborhood tours if you are relocating!

You found the one! Your Realtor will help you craft an offer that takes into account the home's condition, the local market, and your own financial situation. They’ll also provide guidance on the offer price, negotiating with the seller, and helping you navigate all the paperwork and deadlines.

The home is yours! But first, it's time for some due diligence. Once your offer is accepted, the home goes into a period of due diligence known as being "under contract." This is a crucial step in the process and a lot of important tasks happen during this time.

Earnest money deposit: As a first-time homebuyer, you'll need to provide an earnest money deposit. It's typically 1-5% of the purchase price and it is a good faith deposit that shows the seller that you're serious about buying the home. The deposit will be held in an escrow account (usually by the seller’s agent’s brokerage in Pennsylvania, but can also be held by the buyer’s agent’s brokerage or the title company) until closing.

Inspections: It's important to have professional inspections done on the home during this time. This includes a general home inspection, as well as other inspections such as pest, radon, and lead-based paint. The inspector will identify any issues with the home, and give you an idea of what repairs or upgrades may be necessary.

Title: Your Realtor will help you review the title report to ensure there are no liens or other issues with the property. This is also a good time to ensure that the seller has the legal right to sell the property.

Homeowners insurance: It's a good idea to start shopping around for homeowners insurance during this time. You'll need to have it in place 2-3 weeks ahead of closing day. If you’re obtaining a mortgage, you can’t close without it!

Negotiating repairs with the seller: Based on the inspection report, you may want to negotiate with the seller to have them make certain repairs before closing. Your Realtor will help you navigate this process and negotiate on your behalf.

Appraisal: A professional appraiser will be appointed by the lender to determine the home's market value. This will ensure that the home is worth the purchase price. If the appraisal comes in under the purchase price, the lender may not approve the loan for the full amount, and you may need to renegotiate the price with the seller. If the appraisal comes in above the purchase price, it's a good indication that you're getting a fair deal.

It is important to keep in mind that during this process, your Realtor will be there to guide you and help you navigate all these steps, as well as answering any questions you may have. This step can be a little overwhelming but with the help of a good Realtor, you'll make it through with ease.

Closing day is the day when the sale of the home is finalized and the keys are handed over to the new owner. This is when the buyer will pay the remaining balance of the purchase price and any closing costs.

Pre-Settlement Walkthrough: It is generally recommended to complete a pre-settlement walkthrough with your Realtor as close to closing as possible. This will give you an opportunity to inspect the property and ensure that it is in the same condition as when you first went under contract, minus normal wear and tear. It will also give you the chance to make sure that any agreed-upon repairs have been completed by the seller or other parties.

You will complete the following items before closing day:

• Review and sign the final closing documents

• Obtain homeowners insurance

• Obtain a certificate of occupancy (if required)

• Obtain a survey of the property (if required)

• Obtain title insurance

• Confirm that all agreed-upon repairs have been completed

• Review the final HUD-1 Settlement Statement

• Complete a pre-settlement walkthrough with your Realtor

• Coordinate the transfer of utilities and other services

• Arrange for movers or rental truck

• Pack and prepare for the move

You’ll complete the following items at closing.

• Review and sign the final closing documents

• Pay the remaining balance of the purchase price and closing costs

• Obtain the keys to the property

• Review the final HUD-1 Settlement Statement

• Celebrate!

It is important to keep in mind that during this process, your Realtor will be there to guide you and help you navigate all these steps, as well as answering any questions you may have. With a good Realtor and this checklist, you'll make it through the closing day process with ease.

Time to get your housewarming party ready! But don't forget, owning a home comes with added responsibilities and costs, such as regular maintenance and repairs, property taxes, and insurance. But it's all worth it to have a place to call your own! Your Realtor will help you by providing you with a list of reliable service providers, such as handymen, cleaners and more, and will be available to you for any future questions or needs.