In this blog, we will cover and discuss buying home in Pennsylvania for homebuyers. 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 East Coast States. The school system is top-rated in most of the state. While states like New York, Connecticut, and 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 in most East Coast States. There are many tourist destinations and sports teams for residents to visit year-round. 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. Gustan Cho Associates has over 170 wholesale lenders and thousands of mortgage loan programs for homebuyers of single-family, second homes, and investment properties.

Buying Home In Pennsylvania By Relocating Homebuyers

Many home buyers are priced out of buying homes in states like Massachusetts, Connecticut, New York, and New Jersey. In general, East Coast States have higher home prices and higher property taxes. Many first-time homebuyers who have the luxury to relocate and/or work as remote employees often find Buying Home In Pennsylvania a solution to buying affordable housing.

Getting a Solid Pre-Approval Before Buying Home in Pennsylvania

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.

Best Mortgage Lenders in Pennsylvania for Mortgage Approval

Buyers should consult with a real estate agent. Homebuyers should also interview several loan officers. If you are buying home in Pennsylvania with bad credit, you need to interview several loan officers and make sure they have the loan program you need and get a pre-approval. 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. If you do not qualify for a traditional government and/or conventional loan, explore other mortgage options such as non-QM and alternative financing programs.

Pennsylvania Mortgage Lenders For Bad Credit 

Gustan Cho Associates is a mortgage company licensed in multiple states with no lender overlays on government and conventional loans licensed in Pennsylvania. A large percentage of our borrowers are folks who could not qualify at other lenders due to the lender not having the loan program they needed. Over 75% of our borrowers are folks who either got a last-minute mortgage denial or are stressing over their mortgage process. If you have hired 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.

The Importance Of Hiring A Real Estate Agent When Shopping For A Home

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 a 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 about 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 seller 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 Realtor’s website. Other popular online websites include Zillow and Trulia. Both websites have online reviews from 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.

Sellers in Pennsylvania Need to Disclose Known Property Defects

Any known defects of the subject property need to be disclosed. Examples of such defects are foundation damage or leaking basements during floods. Certain items that need to be disclosed on the form include 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 repairs such as roof replacement, septic repair, well repair, and structural repairs were discovered and fixed

For homes built prior to 1978, the property owners must comply with the 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 are voluntary and are 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 their 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 the interior and exterior of a home
• Presence of termites
• Foundation conditions
• Structural condition
• Mold 
• Erosion
• 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, and appraisal. Real Estate Contracts are legal agreements and list all terms and conditions agreed upon 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 the 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: Bad Credit Mortgage Lenders With Low Rates

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 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com.  Gustan Cho Associates is a 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.