Steps In The Home Loan Process For Purchasing PA Real Estate

There are many steps in the real estate purchase process, and many relate to obtaining financing. It may be complicated for both new and repeat home buyers. This blog offers important information about steps in the home loan process for purchasing PA real estate and covers what you may want to know before starting the process.

Steps In The Home Loan Process For Purchasing PA Real Estate


A pre-approval is an introductory review of your finances and credit score to estimate what you may be able to obtain for a loan. It ensures that you meet the most basic criteria for financing. Pre-approvals do not guarantee that you will ultimately receive financing, but is a typical first step in the mortgage process.

Formal Application

An application takes place normally after you have an accepted offer on a property. You may be required to provide additional personal information. The specifics on the property are also reviewed by the lender. They will require a copy of the Purchase and Sales contract in order to continue. Your contract may specify that you complete an application within a specified time frame.

Home Appraisal

An appraisal is ordered by a lender (although buyers are typically required to cover the cost) to determine the current market value of the property. Appraisers will compare your property to others that recently closed in the area within a certain time period. An exact dollar amount is provided. Ultimately, the value of the real estate must satisfy the mortgage amount.

Mortgage Commitment

After your financial information and the details on the property are reviewed, the mortgage company prepares a commitment letter. This confirms that no major issues are present and that the lender is fairly certain that the loan will obtain final approval. There will be outstanding conditions noted in the letter such as an employment verification and final credit check. It is therefore critical not to complete major purchases or alter your financial situation even after a commitment is issued as it may cause a loan to fall thru.

Clear to Close

A clear to close is essentially the final approval of a loan. It affirms that all requirements have been satisfied and that the mortgage company will release the information to the closing agent. This may take place within days or hours before the anticipated closing date.


The settlement involves signing of documentation and filing of documents into public record. Be sure to bring official identification and a money order or certified check for any monies you are paying. Personal checks or cash are ordinarily not acceptable. The transfer of funds takes place at or shortly after and the real estate will be officially yours!

A Few Final Notes

Deadlines are an important facet of any real estate transfer, so make sure that you know the deadlines and what you must provide to comply with each condition. Working with a experienced mortgage professional and real estate agent is very important. They can offer guidance and support, monitor deadlines, and ensure a more positive experience. Contact me, Pedro Teixeira (FIT Credit) for further information on this and related topics. I may be reached at 215-613-8130 or