Prepare for your home-buying journey and secure your dream property
with these streamlined, step-by-step first-time home buyer guides.
Buying your first home in Pennsylvania is a milestone event. While it’s exciting, it’s also completely normal to feel overwhelmed in the beginning. Pennsylvania’s median sale price of $339,000 is lower than the national average of $401,000, but the market can still be competitive. This guide breaks down the home-buying process into simple, actionable steps so you can move forward with confidence. By preparing early and understanding the mortgage types and assistance options available to you, you can successfully find a home you love.
The term first-time homebuyer can be confusing because it doesn’t always mean you’ve never owned a home. According to the U.S. Department of Housing and Urban Development (HUD), you are generally considered a first-time homebuyer if you haven’t owned a principal residence (the home where you primarily live) in the last three years.
You might qualify as a first-time buyer even if you have owned a home in the past, including if:
Knowing your status is important because it opens the door to special programs that can make homeownership more affordable. Some programs for veterans or people buying in specific areas may offer similar perks even if you’ve owned a home before.
Pennsylvania offers financial advantages to first-timer buyers that are designed to help you get your foot in the door. The biggest hurdle for most buyers is saving for a large down payment. Luckily, there are Pennsylvania first-time homebuyer assistance programs that can help.
These programs often offer:
The Pennsylvania Housing Finance Agency (PHFA) is a great place to start looking for 30-year fixed-rate mortgages and assistance. Ask your loan officer about down payment assistance programs and grants specifically. They can help you figure out which programs you are eligible for and guide you through the application process.
Recommended: Pennsylvania First-Time Home-Buying Assistance Programs
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Buying your first home involves many moving parts, so having a clear roadmap helps you stay organized. The following 11 steps guide you through the financial prep, the active search, and the final paperwork.
Before you start looking at houses, take a good look at your finances. Think of this as your readiness check. You are likely ready to buy if your monthly budget can comfortably cover the mortgage, property taxes, homeowners insurance, and ongoing home maintenance costs.
Next, consider your credit score. You’ll need at least a 620 to qualify for most conventional mortgages. A higher credit score — of 740+ — typically helps you qualify for lower interest rates, which can save you a lot of money over time.
You should also check your debt-to-income ratio (DTI). This is just a way of measuring your monthly debt payments against your monthly income. Generally, lenders prefer your total debt to be under 36% of your income, though some lenders will accept up to 43%.
Finally, think about your timeline. Homeownership is a long-term commitment. If you plan to stay in the home for several years, you have time to build equity — which is the portion of the home you truly own as you pay down your mortgage.
Recommended: Average Monthly Expenses for One Person
Your budget should look far beyond the monthly mortgage payment. Of course you must account for the down payment and closing costs. Other pieces of the puzzle include ongoing expenses like property taxes and homeowners insurance. A good home affordability calculator can help you factor in the extra costs that can be easy to overlook.
While many buyers aim for a 20% down payment to avoid private mortgage insurance (PMI), it is not always required. First-time buyers can put down as little as 3% for conventional mortgages. Some government-backed loans may not require any down payment at all. A down payment calculator can help you run different scenarios.
If you are moving to a new area, check the local cost of living to see how the price of utilities and groceries compare to where you are now. They can vary quite a bit from city to city.
Exploring different home loan types helps you find the best fit for your financial profile. Here are the types you’ll want to read up on:
Not all mortgage offers are the same, so shopping around is one of the smartest ways to save money. It’s recommended that homebuyers get quotes from at least three different lenders. This lets you compare their interest rates and the total costs involved.
When comparing, you’ll see two different percentages: the interest rate and the APR.
Don’t be afraid to ask questions about the difference between these two numbers. Also, ask about their customer service experience and their timelines, as you’ll want a lender who is communicative and reliable.
These two terms sound similar, but prequalification vs. preapproval mean different things for your home search.
Having a preapproval letter is a huge advantage. It shows sellers that you are a serious, qualified buyer and proves you have the financial backing to finish the deal.
Hiring a real estate agent early makes the entire home-buying experience much easier. They act as your representative and offer a fresh perspective on properties. While you may think an agent is optional, their expertise can save you significant time.
An agent tailors your search so you don’t waste time on homes that don’t fit. They often have access to new listings before they hit the general market. They can even preview homes for you to ensure they meet your standards.
Negotiations and paperwork are two areas where agents truly shine. They help you navigate complex contracts and legal intricacies.
Be sure to discuss real estate commissions with potential agents, as industry norms have shifted recently.
Searching for a home requires you to balance your wants with your needs. Research different neighborhoods, checking on school districts and noise levels. Consider how your daily commute will change if you move to a new area.
Use online listings to narrow your choices, but always visit in person. Sort homes into high, medium, and low priority categories. This keeps your search focused on the properties that truly check your boxes.
It’s also a good idea to know your rights during this process. Housing discrimination is illegal, but it happens. Document any suspicious obstacles.
When you find a house you love, your agent will help you draft an offer letter. This document includes the price you are willing to pay and any contingencies. Contingencies are conditions that must be met for the sale to go through.
You will also need to submit earnest money with your offer. This is a cash deposit that shows the seller you are serious about the purchase. If the seller accepts, you move forward to the contract stage.
Negotiation is a standard part of this step. Your agent will provide comparable sales data to help you determine a fair bid. Sticking to your budget here is essential for long-term financial stability.
A home inspection examines the property’s structure and systems. It is typically performed during the escrow period to uncover hidden issues. The cost usually ranges between $325 and $425 in Pennsylvania.
You should shop around for quotes and check your lender’s specific requirements. The inspector will look at the HVAC, roof, electrical, and plumbing. Their report helps you decide if you want to finish the deal or ask for repairs.
Being present during the inspection is a great way to learn about your future home. You can ask the inspector questions and see any problems firsthand. This step protects your money and your future investment.
Once you’re under contract to buy a home, your lender will order an appraisal. The goal of an appraisal is simple: the lender wants to make sure the home is actually worth the amount of money they are lending you.
A professional appraiser will visit the home to assess its market value. Even though you are the one paying for this service (usually between $300 and $600), the appraiser works for the lender, not you.
Don’t confuse an appraisal with a home inspection. An inspection looks for damage or repairs needed (like a leaky roof). An appraisal looks at the home’s value compared to similar houses in the area. If the appraisal comes back lower than your offer price, you may need to pay the difference in cash or negotiate with the seller to lower the price.
Closing is the final step where ownership is officially transferred to you. You will sign a pile of legal documents and settle all finances. You must provide proof of homeowners insurance before this meeting can happen.
A final walk-through of the property ensures it is in the agreed-upon condition. You will also receive a closing disclosure that outlines all final loan terms and costs. The title company and escrow agent manage the transfer of funds and deeds.
Once all signatures are complete, the escrow company records the change of ownership. You will then be handed the keys to your new home. Time to celebrate!
An online calculator can be a big help in comparing home equity loan rates and terms. And it’s not the only calculator you’ll find helpful during your home equity loan process:
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Moving into your new home is the start of a fresh chapter. And having a move-in checklist is a great way to stay organized. Your first task should be setting up utility transfers and filing a formal change of address. Scheduling initial maintenance, such as changing air filters and rekeying the locks, ensures your home is safe and efficient.
Beyond the physical move, you may want to shift your focus to long-term financial management. Start a dedicated monthly budget specifically for home expenses like repairs and landscaping. It is also smart to build up an emergency fund to handle unexpected issues, such as a leaky roof or broken water heater. Staying on top of small maintenance tasks now will prevent expensive problems later and help maintain your home’s value.
Buying a home in Pennsylvania is a major achievement, and it’s completely manageable if you have a plan. By using state programs and following these 11 steps, you can find a path to homeownership that fits your budget. Remember to do your research, compare your loan options, and find a real estate agent you trust to guide you through the process. Take it one step at a time, and you’ll be ready to move into your new home before you know it.
Closing costs usually run between 2% and 5% of your loan amount. You also need to budget for your down payment, which can be as low as 3% or even $0 for some programs. Beyond upfront costs, your monthly budget must handle the mortgage payment, property taxes, and homeowners insurance. A home affordability calculator can help you account for the extras.
Most lenders look for a score of at least 600. Conventional loans often require a 620, while FHA loans can accept scores as low as 500 with a down payment of 10%. Higher scores (740+) generally lead to better interest rates.
The best way to start is by checking your personal finances, including your credit score and debt-to-income ratio, and creating a budget. Figure out how much you can realistically afford based on your income and current debts. Once you have a budget, find a lender to get preapproved for a mortgage. Good luck!
FHA loans are very popular because they allow for low down payments and flexible credit scores. VA loans are excellent for eligible veterans since they require $0 down. Conventional loans with just 3% down are also great for buyers with credit scores above 600.
The process starts with checking your finances and getting a mortgage preapproval. Next, you find a real estate agent and start shopping for homes. Once you find a house, you make an offer, and get a home inspection. If all goes well, you’ll get the keys at closing.
Before buying your first home, you should understand that the list price is only the beginning of your expenses. You must factor in closing costs, maintenance, and property taxes. Your credit score heavily impacts your interest rate, and a preapproval letter is essential for competing in a hot housing market.
The 30/30/3 rule suggests spending no more than 30% of your gross income on housing. It also recommends having 30% of the home’s value saved in cash for a down payment and other expenses. Finally, the home price should not exceed three times your annual gross income.
Skipping mortgage preapproval and not checking your credit score early are frequent errors. Many buyers also underestimate closing costs or fail to factor in ongoing maintenance. Making a large purchase, like a new car, right before your loan closes can also cause your mortgage to be denied.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
This article is not intended to be legal advice. Please consult an attorney for advice.Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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