How to Get a Home Mortgage in Pennsylvania

Getting a home mortgage loan can be a time-consuming task, but only if you aren’t prepared. Choosing the right lender for a Pennsylvania mortgage is just as important as choosing the right home. Financing wisely can save you money for many years to come. Follow these steps to getting a Pennsylvania home mortgage loan.

Instructions

Difficulty: Easy

1. Get your credit report and correct any errors it may contain. This could save you thousands of dollars on your loan.
2. Research Pennsylvania and federal programs offered to veterans, disabled, low-income buyers, single parents, senior citizens and rural home buyers. Some of these programs include the HOME program, the Home Ownership Voucher program, Teacher Next Door program, and the Low Income Homebuyer Assistance program.
3. Surf around these government websites to learn about specific assistance programs:
   • Pennsylvania Homeownership Overview
   • USDA Pennsylvania Rural Development programs
   • Pennsylvania Homeownership Assistance programs
4. Explore the loans and rates from a variety of lenders including credit unions, banks, mortgage brokers and online lenders. Choose your mortgage program carefully and find the best interest rate.
5. Get pre-approved from your desired lender. Supply them with all the requested paperwork, which will likely included tax returns, pay stubs, and investment information among others.
6. Interview a few real estate agents and choose one that knows your desired area well and has an established reputation. Hiring a real estate agent to help you with your home loan will cost you a little extra money, but most homes are listed with agencies and will give you a wider selection of homes to choose from
7. Complete the mortgage application with your lender, and make an offer on a home.
8. Close on the home and pay any applicable fees. The lenders will be in touch for payment shortly.

Tips & Warnings

• Make sure you shop around for the lowest interest rates. Even one quarter of a percent can mean thousands of savings over a 30-year mortgage.
• Being pre-approved helps you know how much you can afford as well as gives you an edge when competing with other offers for the same home.
• Have the house professionally inspected top to bottom to ensure that there are no problems that can cost you money down the road.
• Do not let a real estate agent pressure you to buy a specific home, they may have another agenda.
• Before you sign anything, make sure that you thoroughly understand all the terms of the mortgage contract.
• Do not pay a lender to apply for a loan. No reputable lenders engages in this practice.
• Beware of Loan Fraud! If an offer seems too good to be true, or a real estate agent makes you feel uncomfortable, be on your guard. Predatory lending is intentionally coercing consumers into contractual loans with unusually high payment terms and interest rates, often directed at uninformed borrowers or those with poor credit.
• If anyone asks you to declare false information or leave something undeclared, they probably shouldn’t be trusted. Use your common sense and make sure your lender and your agent are working within the law.
• Be sure that the title of the home is clear of liens before you purchase it.