Dana J. Laricks Little
Associate Broker, GRI, e-PRO
Prudential Homesale
Services Group
3435 Market Street
Camp Hill, PA 17011

Phone - (717) 761-7900
Direct line - (717) 307-3149
dana@danalittle.com

Buying a House

Pre-Qualify for a Loan

The first step in the home buying process is pre-qualifying for a loan. If you would like to pre-qualify for a loan or would like more information about mortgage financing, contact me. I’ll help you get started!

Find a Home

Create the Offer to Purchase

Before you make an offer to purchase a home, it is very important that you have been at least pre-qualified or pre-approved by a lender. This is one of the best negotiating tools a buyer can have. It shows the seller that you are financially able to purchase their home. After you have found the right home, it is time to make an offer. In Pennsylvania, the offer to purchase is an eight page Standard Agreement for the Sale of Real Estate. This agreement covers all aspects of the purchase process, including:

purchase price
amount and type of earnest money
any contingencies (financing, inspection, etc.)
personal items you wish the seller to include (washer/dryer, etc.)
closing date
time limit after which the offer will expire
responsibilities of both buyer and seller

Once you make the offer, I will present it to the Seller and their Agent. The Seller may accept it, prepare a counter offer, or reject the offer all together. Once the offer is accepted and signed, it is a legally binding contract.

Negotiate with the Seller

Negotiation begins before we get started looking. Getting pre-qualified for a mortgage enhances your position. Better yet making the effort to become pre-approved will maximize your ability to make a deal that is most favorable to you.

When we find the right home, I will:

search for prices of similar homes sold in the last six months
help you compare it to any other homes you've looked at
evaluate its condition and assess the amount of work it needs
determine how long it's been on the market and attempt to discover why the Seller is selling, and if the price has been reduced
help you make an offer including price and terms that are beneficial to you.

I will draw from my years of experience in negotiating real estate transactions with your best interests in mind.

Whether it's starting with your best offer, saving room to maneuver, compromising, or making concessions to the seller's counter offer, I will provide you with the objectivity to help you make a wise decision.

Home Inspection

I recommend a home inspection for every transaction.

The home inspector checks the condition of the major systems of the house including the structure's exterior, windows, foundation, roof, garage, electrical, plumbing, heating/air conditioner, attic and basement or crawlspace. A pest or dry rot inspection is usually available at an additional charge.

If any major problems with the structure or systems of the house are uncovered, you will have the right to void the sales agreement or to renegotiate the terms of the purchase.

It is recommended that the buyer attend the home inspection. It usually lasts between two to three hours. This will allow you to ask questions about repairs and maintenance of the home. Usually within 48 hours you will receive a written report.

A home inspection usually costs between $200 and $400 and is some of the best money you will ever spend.

I have the experience with the inspection community to recommend a list of accredited inspectors for your use.

Appraisal

Your lender will order an appraisal of the home and coordinate with your agent to schedule a time for the appraiser to see the home. The appraisal determines the fair market value of the home and insures the home is worth the price you are paying in order to secure the loan. The appraisal also helps insure the house meets certain standards regarding its condition. The average cost is $400 for an appraisal.

If the home does not appraise for the sales price, negotiations will begin with the Seller to adjust the price.

Removing Contingencies

A contingency is the dependence upon a stated event that must occur before a contract is binding.

I will work with my clients to carefully consider all aspects of the situation before the contingency is removed as a part of the transaction. Communication and understanding is the key.

The following are some common contingencies:

Buyer obtaining loan approval
Home Inspection
Sale of Buyer's home

Escrow Process

What is an Escrow?

An escrow is the deposit of documents and funds with a neutral third party with specific instructions as to how they should be disbursed.

Escrow acts as the clearinghouse for the exchange and distribution of those documents and funds in connection with transfer or financing of real property.

The escrow officer, an employee of the title insurance company will, acting as a neutral 3rd party, explain the documents and have you sign them. The officer will then assure completion of transaction by delivering to the lender for verification and document recheck and deliver to county for recordation of your deed.

Why is escrow important to me?

The services of a qualified escrow agent assures all interested parties that the rules and regulations governing real property transfers will be strictly observed by a neutral third party with an objective interest in completing the transaction.

An escrow agent represents neither the seller nor the buyer. The escrow agent can act only on each party's behalf according to their written instructions.

What escrow services does the title company provide?

The basic definition of an escrow agent's responsibility is to accept and hold a deed from the seller in exchange for funds from the buyer. The escrow agent will concurrently, when all mutually agreed terms have been satisfied, release the funds to the seller and deed to the new buyer.

In most sale transactions, this “simple” process requires the escrow agent to perform the following functions:

Order a title report on the subject property and obtain all the necessary information to clear all title defects and satisfy existing liens and encumbrances against the property or the principals involved in the sale;
Work with the buyer's lender to insure instructions from the seller, buyer, and lender are coordinated;
Prepare many of the documents necessary for the transaction and review all others to make certain they conform to the parties' demands;
Figure tax and interest prorates and prepare closing instructions and statements for both buyer and seller;
Arrange closing appointments for all parties to sign the necessary documents;
After taking final signatures, the escrow agent has responsibility to complete the transaction by checking all documents for completeness, compliance and accuracy;
Return copies of all loan documents to the lender for approval to record;
Record all necessary documents in the county where the property is located. This is when the transaction is closed;
Disburse all funds out of the escrow account according to the signed, written instructions. These funds could include the seller's net proceeds, the Broker's real estate commission, and other payments required for loan approval or to satisfy other terms of the agreement; and,
Prepare and distribute final closing statements to all interested parties.