Your Guide to Buying a Home
in Pennsylvania and New York

Before you start looking at homes, take stock of your financial picture. Check your credit score, calculate how much home you can afford, and start saving for your down payment.

• Credit score requirements: 620 minimum for conventional loans, 580 for FHA loans.
• Your monthly housing costs should not exceed 28% of your gross monthly income.
• Down payment options vary: 3% down for conventional loans, 3.5% for FHA loans, and 0% down for VA or USDA loans (if eligible).

A pre-approval letter shows sellers you are a serious buyer and helps you focus on homes within your budget. Shop around with at least three different lenders to compare rates and terms.

• Be ready to provide: recent pay stubs, two years of tax returns, bank statements, W-2 forms, a government-issued photo ID, and employment verification.
• Under the new NAR settlement rules, buyer agent compensation is now negotiated separately and must be outlined in a signed agreement before you tour any homes.
• A pre-approval is stronger than a pre-qualification. It means a lender has reviewed your finances and is willing to lend you a specific amount.

Your agent is your guide, advocate, and negotiator throughout the entire home buying process. Choose someone who knows the local market well and communicates clearly.

• Your agent will search for homes that meet your criteria, schedule showings, and accompany you to every property.
• They provide detailed comparative market analysis (CMA) so you know whether a home is priced fairly.
• Your agent writes and negotiates offers, coordinates with lenders and attorneys, and guides you through inspections, appraisals, and closing.

Define what matters most to you and your family before you begin touring homes. Being clear on your must-haves makes the search more focused and less overwhelming.

• Prioritize: bedrooms, bathrooms, square footage, lot size, location, commute time, school district, and property type (single-family, condo, townhouse, etc.).
• Search tools include the MLS (most accurate), Zillow, Realtor.com, and Redfin. I will set up a custom search that sends you new listings matching your criteria as soon as they hit the market.
• Keep an open mind. Some homes need a little vision, and I can help you see the potential that a first look might miss.

When you find the right home, I help you craft a competitive offer backed by market data. Every offer includes several key components.

• The purchase price you are offering, along with your proposed down payment percentage and financing details.
• An earnest money deposit, typically 1-3% of the purchase price, held in escrow to show good faith.
• Contingencies to protect you: home inspection, financing, and appraisal contingencies are the most common.
• A proposed closing timeline that works for both you and the seller.

The home inspection is one of the most important steps in the process. It gives you a clear picture of the property's condition before you commit to the purchase.

• In Pennsylvania, the home inspection typically happens after the contracts are signed.
• In New York, inspections are usually conducted after the offer is accepted but before the formal purchase contract is signed.
• Beyond the general home inspection, you may want to schedule additional inspections: radon testing, sewer or septic inspection, well water testing, and pest inspection.
• A typical inspection costs $650-900 and takes 2-4 hours. I recommend being present during the inspection so you can ask questions and see things firsthand.

Your lender will order an appraisal to confirm the home's value matches the purchase price. This protects both you and the lender.

• The appraiser compares your home to similar properties that have recently sold in the area.
• If the appraisal comes in lower than the offer price, you have options: negotiate the price down with the seller, pay the difference out of pocket, or walk away from the deal.
• Appraisal costs typically range from $600 to $900 and are paid by the buyer.

The closing process differs between Pennsylvania and New York. Knowing what to expect in your state helps reduce stress.

• Pennsylvania: Closings typically take 30-60 days. The process involves a title company or attorney who handles the transfer of funds and deed.
• New York: Closings generally take 45-90 days. In New York, both the buyer and seller must be represented by real estate attorneys.
• In both states, you will do a final walkthrough of the property within a few days of closing to make sure everything is in the agreed-upon condition.

Plan for closing costs of 2% to 5% of the purchase price. Your lender must provide a Loan Estimate within three business days of your application and a Closing Disclosure at least three business days before closing.

• Typical closing costs include: loan origination fees, appraisal ($600-900), home inspection ($650-900), title search and insurance, attorney fees, recording fees, prepaid property taxes and homeowners insurance, and transfer taxes.
• You may also need to prepay interest, property taxes, and homeowners insurance into an escrow account.
• Ask your lender about lender credits, which can lower your closing costs in exchange for a slightly higher interest rate.

You made it! The keys are yours. A smooth move-in day is all about planning ahead.

• In Pennsylvania, the seller must provide HOA rules and financial documents at least five days before closing if the property is in a homeowners association.
• Notify utility companies (electric, gas, water, internet) just prior to closing so services are in your name by move-in day.
• Set up your utilities, change your address with the post office, update your driver's license and vehicle registration, and change the locks on your new home right away.