627 North Duke Street · Lancaster PA 17602 · Phone: (717) 392 4185 · Fax: (717) 299 5938
Step 1: Get Ready
Knowledge and experience are the keys to successful real estate transactions! The more you know about the real estate marketplace, the more likely you are to effectively define your goals. Realtor.com® is a great resource for first-time buyers and can help you become a better informed shopper, while our Realtors ® can use their experience to help you navigate the deal.
Once you've decided to buy a home, be sure to include your REALTOR® in the process. Our agents can help you find out what kind of home you're looking for, whether you have the money to buy it, and whether you can afford it once you're in it. Answering these questions before you start looking will help you breathe easier once you're in your new home!
Once you've decided to buy a home, be sure to include your REALTOR® in the process. Our agents can help you find out what kind of home you're looking for, whether you have the money to buy it, and whether you can afford it once you're in it. Answering these questions before you start looking will help you breathe easier once you're in your new home!
Step 2: Find a REALTOR®
Finding the right REALTOR® is a lot more difficult than it seems. Just like real estate itself, no two deals are exactly alike. Contract terms, financing options, inspection requirements and closing costs are just a few of the obstacles that face the typical home-buyer. This creates a flurry of forms that can be nerve-wracking and confusing, unless you know what you're doing.
At Wright Realty, our emphasis is on establishing a great business relationship with our clients. You likely know that some REALTORS ® represent sellers while others represent buyers. We will explain the options available, describe how we typically work with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in Pennsylvania. Once hired for the job, the REALTOR® will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to your situation. Remember: Because market conditions can change and the strategies that apply to one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace, REALTORS® will keep you updated and alert you to each step in the transaction process.
At Wright Realty, our emphasis is on establishing a great business relationship with our clients. You likely know that some REALTORS
Step 3: Get Pre-Approval
Real estate financing is available from numerous sources, including banking lenders and mortgage companies that we have worked with in the past. Based on our experience, our agents may suggest one or more lenders with a history of offering competitive programs and delivering promised rates and terms.
Once an application is submitted, a loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs. A first-time buyer, for example, may qualify for state-backed mortgage programs with little money down and low interest rates, while a repeat purchaser (someone who has bought a home before) with more equity (money invested in the home) might want to get a 15-year loan and the lower overall interest costs it represents. Typically, first-time buyers opt for the traditional 30-year loan, with either a floating interest rate or a fixed rate of interest over the life of the loan.
If you're a first-time buyer, be sure to ask our agents about the opportunities that might be available to you from the Lancaster Housing Opportunity Partnership ®!
Once an application is submitted, a loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-
If you're a first-
Step 4: Look at homes
Now it's time to start shopping for your new home! Start by looking at our listings to see if there is anything that interests you. Your REALTOR® will also help you by searching for homes with the attributes you've asked to see in a home. The housing market is complicated because the stock of homes for sale is always in flux. Even in Lancaster, the list of homes quickly becomes obsolete as new homes become available and properties now for sale are put under contract.
Be sure to consider your priorities. If you can't get a home at your price with all the features you want, then decide what features are most important. For instance, would you trade fewer bedrooms for a larger kitchen? A longer commute for a bigger lot and lower cost?
Also, consider your needs in several years. If you'll need a larger home, maybe now is the time to buy a bigger house rather than moving or expanding in the future. If you expect your income to increase, perhaps you should consider a more expensive home financed with a loan program where monthly payments increase in the future.
Whatever the case, remember that you're looking at a moving target in a marketplace that is never static. Because of this, it is important to know as much as possible about the choices in your preferred market — and the way to do that is by working closely with one of our REALTORS®.
Be sure to consider your priorities. If you can't get a home at your price with all the features you want, then decide what features are most important. For instance, would you trade fewer bedrooms for a larger kitchen? A longer commute for a bigger lot and lower cost?
Also, consider your needs in several years. If you'll need a larger home, maybe now is the time to buy a bigger house rather than moving or expanding in the future. If you expect your income to increase, perhaps you should consider a more expensive home financed with a loan program where monthly payments increase in the future.
Whatever the case, remember that you're looking at a moving target in a marketplace that is never static. Because of this, it is important to know as much as possible about the choices in your preferred market — and the way to do that is by working closely with one of our REALTORS®.
Step 5: Choose a home
OK, you've looked at several homes and now you're ready to make one of the biggest decisions of your life.
You're about to choose the place where you will live, relax, entertain friends, work and perhaps raise a family. A home is where you spend much of your life, and so choosing a house is an enormous decision.
How do you know if a house is the one? Probably the best approach is to look at as many homes as possible and narrow your choices. One of our REALTORS® can then help you sift through your options and find specific information about financing the property.
You're about to choose the place where you will live, relax, entertain friends, work and perhaps raise a family. A home is where you spend much of your life, and so choosing a house is an enormous decision.
How do you know if a house is the one? Probably the best approach is to look at as many homes as possible and narrow your choices. One of our REALTORS® can then help you sift through your options and find specific information about financing the property.
Step 6: Get funding
While there are dozens of different types of loans and thousands of lenders willing to provide them, jumping into one before you know what you need can have seriously adverse ramifications.
Be aware of your choices and beware of predatory lenders! One of our REALTORS® can help remove the occasional threats presented by scurrilous mortgage lenders.
These days, loans with 5% down or less are widely available -- in fact, in the past few years, loans have emerged from major lenders with no money down! If you place less than 20% down, lenders will want the mortgage guaranteed by an outside third party such as the Veterans Administration (VA), the Federal Housing Administration (FHA) or a private mortgage insurer (PMI) Private mortgage insurance is required by a lender to protect against mortgage defaults. More than 2.5 million VA, FHA and PMI loans are generated each year.
Only those with solid credit can expect to receive the best rates and terms available from the financing market. To get the best loans, make a point of paying credit cards, installment payments, rent and mortgage bills in full and on time.
It might seem that the term, "first-time buyer," means someone who has never owned property before, but under most state programs, this term refers to those who have not owned property within the past three years. State-backed first-timer programs often feature smaller down payments and below-market interest rates.
For details, speak with one of our agents.
Be aware of your choices and beware of predatory lenders! One of our REALTORS® can help remove the occasional threats presented by scurrilous mortgage lenders.
These days, loans with 5% down or less are widely available -
Only those with solid credit can expect to receive the best rates and terms available from the financing market. To get the best loans, make a point of paying credit cards, installment payments, rent and mortgage bills in full and on time.
It might seem that the term, "first-
For details, speak with one of our
Step 7: Make an offer
While most people tend to focus on the bid they want to make for a property, there is much more to making an offer than just price.
In a typical situation, you will complete an offer with the help of one of our agents. The REALTOR® will then present to the offer to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it or make a counter-offer.
Because counter-offers are common (any change in an offer is considered a "counter-offer"), it's important for buyers to remain in close contact with their agent during the negotiation process so that any proposed changes can be quickly reviewed, discussed and, when applicable, re-submitted.
Besides negotiation of price, inspections are also common steps in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews and structural inspections.
While all of these checks are important, structural inspections are probably the most important. During these examinations, an inspector comes to the property to determine if there are material physical defects and/or whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for single-family homes often require two or three hours, and buyers should attend. This is an opportunity to examine the property's mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through.
Hopefully, with the help of one of our agents, your offer is accepted, a settlement date is scheduled and the next step becomes preparing for closing.
In a typical situation, you will complete an offer with the help of one of our agents. The REALTOR® will then present to the offer to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it or make a counter-
Because counter-
Besides negotiation of price, inspections are also common steps in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews and structural inspections.
While all of these checks are important, structural inspections are probably the most important. During these examinations, an inspector comes to the property to determine if there are material physical defects and/or whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for single-
Hopefully, with the help of one of our
Step 8: Get insurance
Title insurance, homeowners' insurance, fire insurance, flood insurance ... these are just a few of the major types of insurance available to home-buyers as they prepare to purchase a property.
Title insurance is a requirement in Pennsylvania and is paid for only once, as part of the closing process. Title insurance protects owners against any irregularities that can make a title invalid. Coverage includes "lenders" policies, which protect buyers up to the mortgage value of the property, and "owners" coverage, which protects owners up to the purchase price. In other words, "owners" coverage protects both the mortgage amount and the value of the down payment.
Protection of the homeowner (or lender) against a catastrophic event is the essential idea behind all of the forms of real estate insurance mentioned above. If something goes wrong, insurance can be the bargain of a lifetime. Just as you wouldn't want to drive a car without the appropriate insurance coverage, you wouldn't want to buy a house that wasn't financially protected from unforeseen and potentially devastating problems. Talk to one of our agents about the level and amount of insurance you'll need.
Remember: Real estate insurance is more than just peace of mind — it's peace of pocket-book!
Title insurance is a requirement in Pennsylvania and is paid for only once, as part of the closing process. Title insurance protects owners against any irregularities that can make a title invalid. Coverage includes "lenders" policies, which protect buyers up to the mortgage value of the property, and "owners" coverage, which protects owners up to the purchase price. In other words, "owners" coverage protects both the mortgage amount and the value of the down payment.
Protection of the homeowner (or lender) against a catastrophic event is the essential idea behind all of the forms of real estate insurance mentioned above. If something goes wrong, insurance can be the bargain of a lifetime. Just as you wouldn't want to drive a car without the appropriate insurance coverage, you wouldn't want to buy a house that wasn't financially protected from unforeseen and potentially devastating problems. Talk to one of our agents about the level and amount of insurance you'll need.
Remember: Real estate insurance is more than just peace of mind — it's peace of pocket-
Step 9: Close the Deal
Settlement, or closing, is a brief process where all of the necessary paperwork needed to complete the transaction is reviewed and signed. Deeds, loan papers, and other documents are prepared, signed and filed with the Recorder of Deeds and any other local property record offices in your community.
Before closing, buyers typically have a final opportunity to walk through the property. This is the last chance you'll have to make sure the property is in the same condition as it was when you agreed to buy it. If anything has changed, notify your REALTOR® right away so the situation can be resolved before the settlement date.
Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.
However it is done, the result is that title to the property is transferred from the seller to the buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs.
If everything goes smoothly and there are no problems during settlement, you'll walk out of the office a homeowner!
Before closing, buyers typically have a final opportunity to walk through the property. This is the last chance you'll have to make sure the property is in the same condition as it was when you agreed to buy it. If anything has changed, notify your REALTOR® right away so the situation can be resolved before the settlement date.
Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.
However it is done, the result is that title to the property is transferred from the seller to the buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs.
If everything goes smoothly and there are no problems during settlement, you'll walk out of the office a homeowner!
Step 10: Next steps
You've done it. You've looked at properties, made an offer, obtained financing and successfully settled the property! Now that the home is yours, there are several steps you'll want to take to protect what is probably your single-biggest asset, whether you are a first-time buyer or a repeat buyer.
First, be sure to hold on to those papers you received at settlement. They are extremely valuable! In the short-term they can help establish tax deductions for the year in which the property was purchased. In the long-term, they will be important for tax purposes when the property is sold, and in some cases, for calculating estate taxes.
Before leaving the settlement table, be sure to determine the status of the utilities required by the home — items such as water, sewage, gas, electric and oil service. You want utility bills to be paid in full by the previous owners as of closing and you also want services transferred to your name for billing after you take possession. Usually these transfers can be done without turning off utilities. Our agents can provide contact numbers and related information.
About two weeks after closing, contact your local property records office and confirm that your deed has been officially recorded. Such records are public notices that show your interest in the property and are vital to maintaining the legal description of your property.
But perhaps the most important thing you can do after moving into your new home is also the easiest —
First, be sure to hold on to those papers you received at settlement. They are extremely valuable! In the short-
Before leaving the settlement table, be sure to determine the status of the utilities required by the home — items such as water, sewage, gas, electric and oil service. You want utility bills to be paid in full by the previous owners as of closing and you also want services transferred to your name for billing after you take possession. Usually these transfers can be done without turning off utilities. Our agents can provide contact numbers and related information.
About two weeks after closing, contact your local property records office and confirm that your deed has been officially recorded. Such records are public notices that show your interest in the property and are vital to maintaining the legal description of your property.
But perhaps the most important thing you can do after moving into your new home is also the easiest —
ENJOY IT!
10 Steps to Home Ownership‡
