Time Line Guide for Purchasing
1. Mortgage Pre-Approval: Typical Time frame: 1 hour or less. You must know how much you can spend before you spend it. Down payments range from 3% to 20% down and there are some 0 down loans such as the VA loan (if you qualify). There may be some types of property that can’t handle just any type of financing (farms or properties with 5 or more acres) so be sure to consult you Realtor® on this. They may also be able to give you good recommendations for a lender who specializes in our local real estate or call Coldwell Banker Mortgage at 1 888-308-5408. They will pre-qualify you over the phone. Note- some of the online lenders may not have closed a deal in Pa. before and some have hidden closing costs that you or your agent may not be familiar with…so be careful here!
2. Negotiations: Typical Time frame: 1 hour to 1 week. Step One: Make an offer. Many things are open for negotiation so inquire about curtains, appliances, working fireplaces, washers, dryers, possession etc.
3. Sign a Contract: Typical Time frame: 1 -5 days. Typically in a sales transaction, a real estate agent represents each buyer and seller. The buyer’s agent prepares a contract covering all the details of the sale from the buyer’s standpoint. The buyers sign the contract and forward the contract to the seller’s agent who then reviews it with the seller; the sellers execute the contract. Possible contingencies: Financing, closing dates, testing issues. The quicker the contract can be signed, the better. A contract is binding only after all parties have signed. In Penna. we generally us a PAR (Penna. Assoc. of Realtors) approved *standard contract. *This contract has been drafted by Attorneys at PAR, attempting to protect the interests of both parties (buyer & seller).
4. Apply for and get a mortgage: Receive commitment letter from lender. Typical time frame: 4 - 8 weeks Mortgage applications cannot be processed without an executed contract.
5 Schedule a Closing: Typical time frame: 1 - 2 weeks after loan approval Managing agents generally set the date for closings, and lawyers or title companies for sellers and buyers coordinate with the appropriate lenders on available dates and times.
6. Closing: Typical time frame: 3 - 5 days from “clear to close”
NOTE- Remember the government has cracked down on lender three times in last couple of years. The process has now changed a bit and can be quite challenging. Prepare yourself and know that your Realtor® will “try” and make this as stress-free as possible.