Frequently Asked Questions

It depends on the loan type. Conventional mortgages typically require 3-20% down. FHA loans require as little as 3.5%, and VA loans offer 0% down for eligible veterans. Pennsylvania also has first-time buyer assistance programs that can help with down payment and closing costs. A LYL Realty Group agent can connect you with trusted lenders who specialize in these programs.

From accepted offer to closing, the process typically takes 30-60 days. However, getting pre-approved, searching for a home, and making offers can add several weeks. Getting pre-approved before you start looking helps expedite the process and makes your offers more competitive in Philadelphia's market.

Most conventional lenders require a minimum score of 620, while FHA loans may accept scores as low as 580. A higher credit score generally means better interest rates and lower monthly payments. If your score needs improvement, we can recommend credit counseling resources to help you get mortgage-ready.

Closing costs typically range from 2-5% of the purchase price. They include lender fees (origination, appraisal, credit report), title insurance, attorney fees, transfer taxes, recording fees, and prepaid items like homeowner's insurance and property taxes. In Philadelphia, the buyer's share of the transfer tax is 2.075%. Your lender will provide a detailed Closing Disclosure at least three days before settlement.

A home inspection reveals hidden issues with a property's structure, systems, and safety that aren't visible during a showing. In Philadelphia's older housing stock, this step is especially critical — inspectors often uncover outdated electrical, plumbing issues, or foundation concerns. The inspection report gives you leverage to negotiate repairs or credits before you commit to the purchase.

Pre-qualification is a quick, informal estimate of what you might afford based on self-reported financial information. Pre-approval is a formal process where a lender verifies your income, assets, credit, and employment to issue a conditional commitment for a specific loan amount. In competitive markets like Philadelphia, sellers strongly prefer offers backed by a pre-approval letter.

While not legally required, having a buyer's agent is strongly recommended. Your agent represents your interests exclusively, provides market expertise, negotiates on your behalf, and guides you through inspections and closing. In most transactions, the seller pays the buyer agent's commission, so representation comes at no direct cost to you.