When things go smoothly, Pennsylvania home buyers can close in about 45 days.
Closing on a home in Pennsylvania takes about 45 days, starting from the day the buyer's offer is accepted. From the time the offer is submitted, the buyer's and seller's agents work together to negotiate the terms of the sale. Upon acceptance of the offer, the buyer's agent orchestrates the transaction. She stays in close contact with the mortgage consultant to make sure the loan application process is proceeding, schedules inspections, negotiates and verifies repairs and consults with the title company as it gathers title documents and prepares the forms needed for closing. The buyer can expedite closing by cooperating with his real estate agent to negotiate and adhere to the sales contract and by cooperating with his mortgage consultant to move through the application process.
Instructions
1. Decide how much to offer. Ask your real estate agent to prepare a comparable market
analysis (CMA) for the home you're interested in purchasing. Examine the comparable
homes' sale prices to help you determine how much you're willing to offer for the home.
2. Pick your contingencies. Contingencies are conditions that must be met for the sale to go through. Your agent will discuss them with you. Common contingency types include: mortgage, which states that the sale is dependent upon your ability to secure financing; inspections, which state the sale is dependent upon satisfactory findings during the inspection or satisfactory negotiation of repairs; appraisal, which states the sale is dependent upon the home appraising for at least the sale price, and sale of another home, which states the sale is dependent upon the sale of the home you currently own and must sell to purchase the new one.
3. Apply for a mortgage pre-approval. The seller will require proof of your ability to pay
for the home before he'll consider your offer.
4. Obtain a bank check in the amount of the initial deposit you intend to make. Your agent
will deliver the check immediately upon the seller's acceptance of your offer.
5. Prepare and submit your offer. In Pennsylvania, your offer is the actual sales contract. It includes your offer price and the contingencies you've decided to elect or waive, in addition to all the other terms of the sale. Your agent will also ask you to sign a seller's disclosure that describes known defects and gives a repair and maintenance history. There probably won't be a disclosure if the home is a foreclosure. Otherwise, it's required except in specific circumstances that don't apply to most buyers. Your agent will submit the sales contract, your mortgage pre-approval, the seller's disclosure and a copy of your bank check to the listing agent. The seller will accept your offer by signing the sales contract. Your agent will deliver your deposit check immediately upon the seller's acceptance.
6. Apply for your mortgage as soon as your offer is accepted. The standard Pennsylvania sales contract specifies that you're required to apply within seven days, but the sooner, the better. Respond promptly to the lender's requests for documentation.
7. Choose a title company. Your agent can suggest several. The title company researches the history of the property's ownership and issues insurance guaranteeing the rights of ownership. You'll have to buy title insurance on your mortgage lender's behalf. As your closing's organizer and host, the title company also collects and disburses all the money and paperwork that will change hands on closing day. The title company will schedule the closing for a date and time convenient to all parties. You may hire an attorney to represent you at closing, but attorneys are not required in Pennsylvania.
8. Order the inspections, with the assistance of your real estate agent. Attend the inspection, if you wish, to see first-hand any issues the inspector uncovers.
9. Work with your agent to negotiate repairs if the inspection shows repairs are needed. Decide which are "wants" and which are deal breakers. Understand the difference between repairs that must be made, such as those on which financing is dependent, and those that merely would be nice to have made.
10. Secure the remainder of your down payment cash and the cash you need for closing. Your mortgage consultant will give you a close approximation of the amount you'll have due. The title company will have provided you a HUD settlement sheet showing the exact amount within 48 hours of your closing.
11. Walk through the property with your real estate agent on the way to your closing. Make sure it's in the same condition it was in when you made your offer. Verify that negotiated repairs were completed. You'll be able to return to the home with your own keys right after closing. The walk through is just to make sure nothing has happened that would stop the sale.
Tags: your offer, title company, agent will, sales contract, Your agent will, dependent upon
