Buying Home In Pennsylvania For First Time Home Buyers
Many New Yorkers Are Fleeing To Pennsylvania To Purchase A Home Due To More Affordable Housing And Lower Taxes
This Article Is About Buying Home In Pennsylvania For First Time Home Buyers
One of the states many New Yorkers are fleeing to is Pennsylvania. The state of Pennsylvania has many areas where it is rural. You can get a lot of house for the money in rural Pennsylvania. The landscape throughout the state of Pennsylvania is absolutely gorgeous. Many homeowners in Pennsylvania can get a lot of house for the money. The state has substantially lower taxes than New York as well as many other the East Coast States. The school system is top-rated in most of the state. While states like New York, Connecticut, Massachusetts are seeing a mass exodus of individual taxpayers and businesses, the state of Pennsylvania is thriving and raking in billions in revenues.
Pennsylvania Is Becoming A Popular State To Purchase A Home
Pennsylvania is a very popular state to buy a home. Buying home in Pennsylvania is affordable. Many New York home buyers are relocating to other states like Pennsylvania. Many areas of the state are rural where buyers can get affordable homes with acreage. The cost of living and state taxes in the state is lower than most East Coast States. There are many tourist destinations and sports teams for residents to visit year around. Gustan Cho Associates is a mortgage company licensed in multiple states including the state of Pennsylvania with no lender overlays on government and conventional loans.
Buying Home In Pennsylvania By Relocating Home Buyers
Many home buyers are priced out of buying homes in states like Massachusetts, Connecticut, New York, New Jersey. In general, East Coast States have higher home prices and higher property taxes. Many first-time home buyers who have the luxury to relocate and/or work as remote employees often find Buying Home In Pennsylvania a solution to buying affordable housing. One of the most important factors home buyers need to think about is How Much Home You Can Afford. Not how much buyers can qualify. Also, the size of the home is important. The ideal neighborhood and proximity to work and/or schools are also important factors. Every state has different laws and guidelines when it comes to home purchase transactions. Purchase contracts, title credits and charges, title defects, zoning rules, property tax prorations, and mortgage disclosures vary state by state. When buying a home in Pennsylvania, buyers need to get familiar with the above.
The Importance Of Hiring A Real Estate Agent When Shopping For A Home
Buyers should consult with a real estate agent. Homebuyers should also interview several loan officers. Not all lenders have the same guidelines. Borrowers with perfect credit and income can get approved anywhere. However, borrowers with bad credit may need to consult with a lender with no overlays. Gustan Cho Associates is a mortgage company licensed in multiple states with no lender overlays on government and conventional loans licensed in Pennsylvania. Over 75% of our borrowers are folks who either gotten a last-minute mortgage denial or are stressing over their mortgage process. With the right realtor and mortgage professional buying in Pennsylvania should be a smooth stress-free enjoyable experience. Most real estate agents have a list of great referrals such as attorneys, title agents, home inspectors, and lenders.
Importance Of Hiring Realtor In Pennsylvania
Whether home buyers are natives of Pennsylvania or transplants from other states, it is very important that they are represented by a licensed realtor.
- Real estate agents know home values, neighborhoods, crime rates, and complex procedures that are involved in the home buying and mortgage process
- Homebuyers do not have to pay a dime for the services of a real estate agent
- Home sellers pay for the real estate commission of 6%
The buyers and sellers’ agents split the commission.
Services Of A Real Estate Agent
Here are the services realtors offer home buyers:
- Offers experience and knowledge of the community they represent
- Are knowledgeable with home values, prices, and housing market conditions
- Have access to technology and systems that will help buyers narrow property and neighborhood searches
- Have a network of other realtors, buyers, sellers, mortgage professionals, and third-party professionals such as attorneys, home inspectors, and contractors
- Most experienced real estate agents are expert negotiators and can negotiate the best prices and get buyers sellers concessions
Realtors often quarterback when there are problem situations like a low appraisal or extending closing dates.
Out-Of-State Home Buyers Buying Home In Pennsylvania
Many lenders are licensed in multiple states.
- Most home buyers normally get realtors and loan officer referrals from family and friends
- Others do their own research online
- They thoroughly research realtors and lenders and check out their online reviews
- Those folks moving from out of state to Pennsylvania can check the Pennsylvania Department of State’s website and the Pennsylvania Association of Realtors website
- Other popular online websites include Zillow and Trulia
Both websites have online reviews of customers. Make sure that your realtor and/or loan officers are not part-timers and have many years of experience and countless good online reviews.
Pennsylvania Lemon Law Housing Disclosures
There are certain seller disclosure laws in the state of Pennsylvania.
- State 68 Pennsylvania Statutes Section 7304 disclosures require home sellers to disclose known material defects of the property they are selling
- Seller’s Proper disclosure Statement form needs to be completed by sellers in disclosing known defects of property sellers are selling such as foundation damage or leaking basements during floods
Certain items that need to be disclosed on the form includes the following:
- Contents of property such as appliances and working condition
- Smoke and carbon monoxide detectors and functionality
- Any known defects in HVAC, plumbing, and electrical systems
- Deed restrictions and homeowners associations fees and by-laws
- Disclosing if the home had work done without permits
- Dates of when major reapirs such as roof replacement, septic repair, well repair, and structural repairs were discovered and fixed
Homes built prior to 1978, the property owners must comply with federal Title X ACT and disclose lead-based paint and hazards (lead disclosure section of the EPA’s website)
Home Inspections When Buying Home In Pennsylvania
Home inspections is voluntary and is not required by lenders.
- However, it is highly recommended for home buyers buying home in Pennsylvania to have a home inspection done
- Home inspectors will thoroughly inspect the home and release its findings on a property inspection report
Homebuyers should have the results of the home inspection as a contingency when writing up the real estate purchase contract.
Here is what home inspection reports entail:
- The general condition of interior and exterior of a home
- Presence of termites
- Foundation conditions
- Structural condition
- Proper drainage
- Heating, Plumbing, and HVAC Systems and conditions
- Longevity of appliances
- Condition of roof
- Overall inspection of the home and other systems
Real Estate Purchase Contracts When Buying Home In Pennsylvania
Make sure to thoroughly review the real estate sales contract before signing. Things to look for are contingencies such as a mortgage, home inspection, appraisal. Real Estate Contracts are legal agreements and lists all terms and conditions agreed between buyers and sellers. Actual sales price, seller concessions, terms of when earnest money can be refunded, and contingencies need to be clearly stated. The legal description of the property needs to be stated. Most real estate contracts when buying a home in Pennsylvania are standard.
Title When Buying Home In Pennsylvania
All lenders will not lend without a clear title. Homebuyers purchase title policy insurance for the benefit of the lender. The purpose is so there is no defect on the title to property or clouds in title prior to and/or after closing. Home sellers choose the title company. Title charges vary depending on the title company. Pennsylvania is one of those states where real estate attorneys are not required. The title agent handles the closing. It is up to both buyers and sellers to see if they want a real estate attorney to represent them.
Borrowers With Bad Credit Buying Home In Pennsylvania
Not all lenders have the same lending guidelines on government and conventional loans. All lenders need to meet agency guidelines. However, lenders can have overlays that are higher lending requirements. For example, FHA requires 580 credit scores for borrowers with 3.5% down payments. However, many lenders will require 620 to 640 credit scores. This higher credit score required by lenders is called lender overlays. Borrowers with bad credit buying homes in Pennsylvania seeking a lender with no overlays can contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at email@example.com. Gustan Cho Associates is a mortgage company licensed in multiple states with no lender overlays on FHA, VA, USDA, and Conventional Loans. We are also experts in non-QM and bank statement loans for self-employed borrowers.