Philadelphia & South Jersey Home Buyer FAQ

Your readiness matters more than trying to time the market. Stable income, adequate savings, and a clear understanding of your goals are often more important than predicting market conditions. We'll help you evaluate current inventory, pricing trends, and neighborhoods so you can decide when the time is right for you.

A pre qualification is an estimate based on information you provide to a lender. A pre approval means a lender has verified your income, assets, and credit, making your offer much stronger in a competitive market.

Conventional loans generally require a credit score of 620 or higher. FHA loans may allow scores as low as 580 with 3.5% down and, in some cases, 500 with at least 10% down. A higher credit score may also qualify you for a lower interest rate.

Most buyers put down between 3% and 20%, depending on the loan program. FHA loans require as little as 3.5% down, many conventional loans allow 3% to 5% down, and eligible veterans may qualify for VA financing with no down payment.

A down payment is the portion of the purchase price you pay toward the home itself. Closing costs are the fees associated with completing the transaction, including lender fees, title insurance, appraisal fees, prepaid taxes, homeowners insurance, and other settlement related expenses.

In Philadelphia, buyers should generally budget 5% to 7% of the purchase price. In most Pennsylvania counties and South Jersey, buyers typically spend 3% to 5% of the purchase price on closing costs.

Earnest money is a good faith deposit that shows the seller you're serious about purchasing the home. It is typically 1% to 3% of the purchase price and is applied toward your down payment and closing costs at settlement.

A buyer's agent compensation is negotiated between a buyer and their agent, but sometimes the seller may offer compensation towards the buyer agent’s commission. Before touring homes, buyers are required to sign a Buyer Agency Agreement. This agreement explains your agent's responsibilities, how they are compensated, and confirms they represent your interests. Separately, many brokerages also charge a flat conveyancing fee at closing to cover the administrative work of processing the transaction, this is typically a set dollar amount rather than a percentage, and is separate from agent commission.

Every buyer's journey is different. Some buyers purchase the first home they see, while others tour many homes before finding the right one. We'll help you identify your must haves and nice to haves so your search stays focused.

After a contract is signed in New Jersey, there is a three business day Attorney Review period. During this time, either party may hire an attorney to review the contract and recommend revisions before it becomes binding.

While not legally required, home inspections are strongly recommended, especially for older homes. A general inspection typically costs $300 to $600, and additional inspections such as radon, termite, sewer, well, or septic may also be recommended depending on the property.

If the home is in New Jersey and has a private well, state law (the Private Well Testing Act) requires the well water to be tested before closing — by default this falls on the seller, though cost can be negotiated between both parties. Pennsylvania has no similar statewide requirement, so well testing there is typically driven by the buyer's lender or agreement of sale rather than law.

Septic systems work similarly in both states: neither PA nor NJ requires a seller-provided inspection by state law, so it's usually up to the buyer to order a septic inspection as part of their due diligence, with the seller typically responsible for providing access and covering pumping costs. Local townships and counties can add their own requirements, so it's always worth checking with your agent about what applies to the specific property.

Older homes should be carefully evaluated for roof, plumbing, electrical systems, structural components, and possible knob and tube wiring. We also recommend checking for any current or previous Licenses & Inspections (L&I) violations.

The home search can take anywhere from days to months, depending on your goals and the market. Once your offer is accepted, most financed purchases close within 30 to 45 days, while cash purchases often close within two to three weeks.

You'll complete a final walkthrough, sign your loan and closing documents, pay any remaining funds due, and once the transaction is recorded, you'll receive the keys to your new home. Most settlements take about 45 minutes to an hour.

The Homestead Exemption reduces the taxable assessed value of an owner occupied primary residence, lowering your annual property tax bill. You'll apply directly with the City of Philadelphia after closing.

South Jersey generally offers larger lots, township school districts, and higher property taxes. Philadelphia offers a more urban lifestyle, a city wage tax, and programs such as the Homestead Exemption. We'll help you compare communities and find the location that best fits your lifestyle and goals.