Buying a Home in Philadelphia: The New Home Loan Process

By Gabriel Traverso
Local Lender Columnist
Nov 19, 2007
Don't understand the mortgage process or what you need to know? Don't worry--getting into your first Philadelphia home doesn't have to be difficult.

Are You Ready for a New Home Loan?

Buying a new home means you have to be ready for a few things. If your credit is excellent there's a possibility you can get a Philadelphia home loan with no money down, maybe even get your closing costs financed. However, most Philadelphia homeowners will need some cash for a down payment and closing costs. Additionally, it's critical that you know how much you can afford each month for your mortgage.

Get Approved

You can find the home you want and then apply for your mortgage, but it's smarter to get pre-approved for your new home loan and then start shopping for your Philadelphia home. This can also help when you make an offer.

Find Your Home, Make an Offer

Enlist an experienced real estate agent to represent your interests when shopping for a home making an offer on the home you want.

Mortgage Approval

Once you have an accepted offer on your new home it's time to get your mortgage approved. This will finalize the loan you've already been approved for, and you'll get the exact dollar amounts for the loan, the monthly payment, and the closing costs.

Escrow

This stage is where the home begins to legally change hands. The title is researched and insured. Funds are placed into escrow and held until closing. Any inspections or repairs agreed to in the offer are usually completed during escrow.

Closing

You execute your sale and loan documents, usually at an escrow company or attorney's office. The real estate agent(s) and your loan officer may also be there to answer questions if they come up. If you can't get into an office, your lender can often arrange an accommodation and have a title officer come to you to close on your property.

About the Author
Gabriel Traverso is a freelance writer, professional musician, and an artist. He resides with his family in Reno, NV.