A Complete Guide for

FIRST TIME
HOME BUYERS

BHH Affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of
HomeServices of America, Inc.® Equal Housing Opportunity.
The Steps to Buying a Home

The best way to start the home buying process is by You can search homes online all day long, but you‘ll
determining if you can afford to purchase a home and, need a real estate professional to schedule showings,
if so, how much can you afford. You can do this by offer expertise, negotiate on your behalf, manage
getting pre-approved from a mortgage lender. You’ll paperwork and many other daunting tasks. Don’t be
also want to make a list of your income vs debts. This afraid to interview a few different real estate agents.
will help you determine a comfortable per month Afterall, this is the person who will help you make one
mortgage payment. of the largest financial decisions of your life!

Now comes the fun part... deciding what you want in Woo-hoo! You’ve found the home you’ve been
a home! How many bedrooms? Bathrooms? How far dreaming of. Now what? At this point, your real es-
are you willing to commute? Do you want a move-in tate agent will help you prepare and present an offer.
ready home or are you willing to do a few renonva- He/she will also negotiate the terms and potential
tion projects? Give this some thought, be realistic counteroffers. Once everything is agreed upon, you’ll
and share your wants and needs with your real estate deposit your earnest money, arrange for an inspection
agent. (PS: We have included a checklist in this guide and appraisal, secure financing, order home insur-
to make this even easier!) ance, home warranty and more. Your real estate agent
will guide you through the process between offer and
closing to keep you on track.
 Words You Should Know
APPRAISAL HAND MONEY (EARNEST MONEY)
A written estimate of a property’s current value. A deposit made by the potential home buyer to
show that he/she is serious about buying the
CLOSING COSTS house.
Fees associated with buying a house that your
lender charges and/or you rack up from various
third parties.
INSPECTION
An evaulation of the home in which a
professional inspector determines the current
CONTINGENT condition of the home and its systems.
A status in which a house has accepted an offer
but relies on meeting certain crieria, such as
passing a home inspection or appraisal.
LISTING
A list of information about a home that is
currently on the market.
CONVENTIONAL MORTGAGE
A mortgage loan not insured by the government
or guaranteed by the Veterans’ Administration. It is MLS
subject to conditions established by the lending A.K.A. Multiple Listing Service. The MLS is a data-
institution and State statutes. base that includes all available homes for sale in
a particular area.

COMMISSION
A percentage of the sale that is paid to the real
PMI (Private Mortgage Insurance)
estate professional. In most situations, commis- The monthly insurance payment a lender must
pay if the down payment is less than 20% of the
sions are paid by the seller of the property.
sale price.

DOWN PAYMENT PRE-APPROVAL

The amount of your home’s purchase price you An evaluation by a lender that determines if the
pay upfront. potential buyer qualifies for a loan and, if so, the
maximum amount the lender would be willing to
FHA MORTGAGE lend.
A mortgage that is insured by the Federal Housing
Administration (FHA). FHA loans are designed to REO
make housing more affordable. An acronym for “Real Estate Owned.” A REO
property is owned by the bank due to a foreclo-
FORECLOSURE sure. REO properties can be purchased from the
A property seized by the mortgage lender due to bank; however, they are often sold “as is.”
the homeowner failing to make full payments on
their mortgage. In hopes to recover the balance of SELLER ASSIST
the home loan, the lender will sell the house. Money given from the seller to the buyer at
settlement to pay for part of the closing costs.
FSBO The amount varies depending what the mort-
gage company allows.
A.K.A. For Sale by Owner. A FSBO is a property that
is being sold by the current homeowner without
the aid of a real estate agent.
Interviewing Agents

When it comes to buying your first home, you’ll want to be sure you have a real estate agent that
best fits your needs. That’s why interviewing a few different agents is a great idea!

Here are a few questions to ask.

How long have you been selling real estate?

What percentage of your business is spent working with buyers?

How well do you know the areas I am looking in?

How do you prefer to communicate? (Phone, email, text?)

How often will you communicate with me?

How many clients are you currently representing?

How will you notify me of potential homes that hit the market?

What sets you apart from other real estate agents in the area?

How will you keep me on track during the buying process?

The best time for me to tour houses is ______ (daytime, nights, weekends, etc.). Will that work
with your schedule?

Will you and/or your company be able to provide me with resources on home loans, home
insurance, home warranty, title, and anything else I need during the buying process?

Do you have any references that I could contact?

 Home Buyer’s Checklist
Buyer’s Name(s):

Price Range: MIN $ - MAX $

Desired Neighborhoods/School Districts:

Bedrooms: Bathrooms: Square Footage:

House Style:  c Cape Cod c Colonial c Farmhouse c Log Cabin  c Multi-level  c Ranch
c Split-Level c  Tudor  c Victorian  c Other:

FEATURES DESIRED HIGHLY DESIRED MUST-HAVE

Cul-de-Sac Street
Garage
Fenced-in Yard
Pool
Deck and/or Patio
Front Porch
Hardwood Floors
Open Floor Plan
Finished Basement
Updated Bathroom(s)
Spa Bath
Master Bathroom
Eat-in Kitchen
Granite Countertops
Kitchen Island
Kitchen Appliances Included
Fireplace
Central Air
Washer/Dryer Included
Office
Walk-in Closet
Security System
Dining Room

Other:
What can you afford?

Step 1 Monthly Income

Wages, salaries, business income after expenses ________________
Interest, dividends or rental income ________________
Other income (alimony, child support, pensions, or Social Security) ________________

Total Monthly Income (Step 1) $________________

Step 2 Monthly Non-Housing Expenses

Car payment and insurance ________________
Cell phone ________________
Student loan ________________
Credit card ________________
TV/Internet/Netflix/Etc. ________________
Groceries/Gas/Other ________________
Travel/Recreation/Fun Money ________________
Child care ________________
Monthly bank loan payments (other than a mortgage) ________________
Alimony or child support you owe ________________
Savings and investments ________________

Total Monthly Non-Housing Expenses (Step 2) $_______________

Step 3 Amount Available for Monthly Housing Expenses

Total monthly Income (Step 1) ________________
Minus Total Non-Housing Expenses (Step 2) ________________

Equals Amount Available for Monthly Housing Expenses (Step 3) $_______________

Step 4 Monthly Estimated Housing Expenses

Mortgage loan payment (principal and interest – see chart) ________________
Property taxes ________________
Mortgage insurance ________________
Homeowner’s insurance (liability, flood, fire) ________________
Utilities (heat, water, electricity, gas, trash removal) ________________
Maintenance and repairs ________________
Other (assessments, homeowner’s association dues) ________________
Total Monthly Estimated Housing Expenses (Step 4) $_______________

Compare Step 3 and Step 4 totals.

The Total Monthly Estimated Housing Expenses (Step 4) should not exceed the Amount Available for Monthly Estimated Housing Expenses (Step 3).
 Loan Application Checklist

Don’t let the loan application process prevent you from making an offer on the home of your dreams! Be ahead of
the game by having all your documents organized and ready to give your loan originator.

Here is a checklist of documents and materials you will need in order to apply for a mortgage:

Purchase contract and property information Assets

o Copy of the sales contract o Complete information on all bank and money
o Mailing address and property description accounts
o Contact information for access to the property o Two months of bank statements
o Plans and specifications (new construction only) o Current values of stocks, bonds, mutual funds
and other investments
Personal information o Vested interests in retirement funds
o Social Security number o Value of life insurance
o Age o Information on vehicles you own
o Years of schooling o Information on real estate you own
o Marital status o Value of significant personal property you own
o Number and ages of dependents
o Current address and telephone numbers Liabilities
o Addresses for the past seven years o Itemized list of all current debts (loan, credit
o Current housing expenses cards, and other bills)
(Rent, mortgage, insurance, taxes) o Written explanation of past credit problems
o Name and address of landlord or mortgage o Full details of bankruptcy during the last seven years
holder for past two years
Fees
Employment history and income o Credit report and appraisal fees (usually $500
o Two years of employment history, with complete or less)
details of each job
o Recent pay stubs and two years of W-2 forms
o Complete tax returns and financial statements if
self-employed
o Written explanation of employment gaps
o Records of dividends and interest received
o Proof of other income
Mortgage Do’s & Don’ts
While you are considering the purchase of a new home, you need to be aware of what things might adversely affect your
loan. Your credit, income and assets are verified after you submit your application and in some instances right before clos-
ing. Following these tips throughout the loan process can be very important.

DO CALL YOUR MORTGAGE CONSULTANT

If you are unsure if something will impact your loan, call your representative.

DO KEEP ORIGINAL DOCUMENT

Keep originals of all paystubs, bank statements and other financial documents.

DO PAY ALL YOUR BILLS ON TIME

Late payments on current accounts like mortgage, car payment, charge cards, etc. will impact your credit score
which identifies your likeliness to repay your debts. Make your mortgage payments on time but call your loan
representative before you make any payments that are scheduled within two weeks of closing.

DON’T APPLY FOR NEW CREDIT or INCREASE ANY CREDIT LIMITS

Avoid making major purchases such as cars, lines of credit for furniture, appliances, computers, etc. If you receive
an invitation to apply for new lines of credit or to increase existing credit, don’t respond. If you do, that company
will pull your credit report and this will have an adverse effect on your credit score.

DON’T MAX OUT or OVER CHARGE EXISTING CREDIT CARDS

Running up credit cards is the fastest way to bring a credit score down. Try to keep credit cards below 30% of the
available limit.

DON’T CONSOLIDATE DEBT or CLOSE CREDIT CARD ACCOUNTS

This may change your qualification ratio of debt to available credit which also affects your credit score. You want
to keep an active beneficial credit history on your record. If you really want to do these things, do it after you close
your mortgage loan.

DON’T RAISE RED FLAGS

Don’t co-sign on another person’s loan or change your name and address. The less activity that occurs while your
loan is in process, the smoother the process will be.

DON’T CHANGE JOBS

Employment stability is a big factor in the underwriting process. Quitting, changing jobs or even changing posi-
tions in same company can greatly impact your loan approval. Inform us immediately of any changes to your job,
position or income.

Brought to you by:

At West Penn Financial, we have the knowledge and
resources for a smooth move. From securing the financing that best
fits your client’s lifestyle, to handing over the keys, our experts listen
to your client’s needs. Bringing all the pieces together for a stress-
free transaction – that’s what we do best.
For more information,
call us at 412-391-3200 or visit West Penn Financial pledges fast, friendly and professional service.
It’s our mission and our greatest success. Let us make it happen for
www.WestPennFinancial.com you.
Estimated Monthly Repayments Monthly Payment Estimate

The chart below shows the estimated monthly mortgage repayment amounts based upon a 30 year
loan.
INTEREST RATE
LOAN AMOUNT

Payments are based on a 30-year loan term and are rounded up to the nearest whole dollar.
Payments do not include insurance, property taxes, homeowner association dues and private mortgage insurance, if applicable.
Offer to Sale Process
After the Sale
After a Purchase Agreement is accepted, there are
a myriad of details involved until the time of closing.
This infographic shows the steps that are typically
taken.
 Moving Checklist

Before the Move After the Move

c Arrange for movers c Clean your new home

c Notify your utility services at both your current c Change the locks to outside doors
and future residence
c Check smoke detectors and replace batteries, if
c Research and contact service providers at your needed
new residence (e.g. Internet, Cable, Phone)
c Be sure that all utility services are turned on and
c Complete change-of-addres form at the post in your name (Electric, Gas, Water, Basin and
office Drainage, Garbage, etc.)

c Start using up items that cannot be moved, such c Arrange times for cable and internet providers
as frozen food, bleach and aerosols to come and install

c Begin packing items you don’t use often c Change your address on your bank accounts,
credit cards, driver’s license, vehicle registration,
c Arrange for home insurance voter’s registration, etc.

c Store important documents such as birth c Notify your employer of your new address and
certificates, medical records, legal/financial papers new local tax ID
in a safe place that will not get lost in the move
c Store all of your home’s closing documents in a
c Donate or sell items that you do not wish to safe place
move
c Find and store manuals for the home’s
c Pack an essentials bag appliances and systems

c Measure furniture and come up with a plan on c Store important documents such as birth certif-
where you want everything in the new home icates, medical records, legal/financial papers in a
safe place that will not get lost after the move
c Empty and defrost refrigerator
c Meet your neighbors
c Clean your current living space
c Unpack and enjoy your new home!
c Give your landlord your new address in case he/
she needs to forward stray mail