Buying a Home in Pennsylvania & Maryland

Buying a home is one of life's biggest milestones, and whether you're purchasing your first home or planning your next move, it's natural to have questions along the way.

At Orrstown Bank, we believe homebuyers deserve a mortgage partner who takes the time to listen, answer questions, and help them understand their options. That's why our mortgage officers work closely with homebuyers throughout Pennsylvania and Maryland to provide guidance at every stage of the journey.

From preparing your finances and getting pre-approved to navigating closing day, this guide walks through the key steps of the homebuying process and highlights how our team can help along the way.

1. Determine Your Budget

Before you begin looking at homes, it's important to understand how much home may fit comfortably within your budget.

In addition to your mortgage payment, homeownership costs may include:

• Property taxes
• Homeowners insurance
• Utilities
• Maintenance and repairs
• Homeowner association fees, if applicable

Taking a close look at your income, expenses, savings, and financial goals can help you determine a comfortable price range before you begin your home search.

An Orrstown Bank Mortgage Officer can help you estimate potential monthly housing costs and discuss financing options that align with your goals.

2. Prepare for the Mortgage Application Process

Lenders review several factors when evaluating a mortgage application.

Common areas reviewed include:

• Credit history
• Income and employment
• Assets and savings
• Existing debts
• Overall financial profile

Before applying, consider:

• Reviewing your credit report for accuracy
• Paying bills on time
• Limiting new credit applications
• Reducing debt when possible
• Gathering financial documents

Preparing early may help make the mortgage process smoother and give you a better understanding of your options.

3. Get Pre-Approved

A mortgage pre-approval is often one of the first steps in the homebuying process.

Pre-approval can help you:

• Understand your potential homebuying budget
• Focus your home search
• Demonstrate to sellers that you're a serious buyer

When applying for pre-approval, you'll typically provide information about your income, employment, assets, and liabilities.

At Orrstown Bank, our Mortgage Officers take the time to answer questions, explain available mortgage options, and guide you through the pre-approval process.

Please note: A pre-approval is not a commitment to lend. Final loan approval is subject to underwriting, verification of information, and satisfaction of all conditions and requirements.

4. Explore Your Mortgage Options

Not all mortgage programs are the same. The financing option that may be appropriate for you depends on your financial situation, homeownership goals, and individual circumstances.

Depending on your qualifications, available mortgage options may include:

• Conventional Mortgages – Traditional home financing options available for eligible borrowers purchasing or refinancing a home.
• Construction-to-Permanent Mortgages – Finance the construction of a new home and transition to permanent mortgage financing upon completion.
• First-Time Homebuyer Mortgage Program – Mortgage solutions designed to help eligible first-time homebuyers navigate the homeownership process.
• CRA Mortgage Program – Financing available for eligible borrowers and properties located within Orrstown Bank's CRA Assessment Area.
• USDA Loans – Government-backed mortgage programs for eligible borrowers purchasing homes in qualifying rural and suburban areas.
• FHA Loans – Mortgage programs insured by the Federal Housing Administration that offer financing options for qualified borrowers.
• VA Loans – Mortgage programs available to eligible veterans, active-duty service members, and certain surviving spouses.
• Orrstown Bank Portfolio Loans – Financing solutions for eligible borrowers and properties that may fall outside standard conventional mortgage guidelines.
• Medical Doctor, Dentist & Veterinarian Loan Program – Specialized financing options designed for eligible medical professionals at various stages of their careers.

An Orrstown Bank Mortgage Officer can help you understand available loan programs, review eligibility requirements, and discuss financing options that align with your homeownership goals.

5. Start Your Home Search

Once you understand your budget and obtain pre-approval, you're ready to begin looking for a home.

As you compare properties, consider factors such as:

• Location
• Home size
• Property condition
• Features and amenities
• Commute preferences
• Future needs

Creating a list of must-have and nice-to-have features can help you stay focused throughout your search.

6. Make an Offer

When you find a home you'd like to purchase, your real estate agent can help you prepare an offer.

Several factors may influence the offer process, including:

• Market conditions
• Comparable home sales
• Property condition
• Financing terms
• Seller preferences

Once an offer is accepted, the mortgage process moves into the next stage.

7. Complete Processing, Underwriting, Appraisals & Inspections

After your offer is accepted, your lender will continue reviewing information needed to finalize your loan.

This stage may include:

• Verification of financial information
• Property appraisal
• Additional documentation requests
• Underwriting review
• Home inspection, if applicable

An appraisal helps determine the property's value, while an inspection can help identify potential concerns regarding the property's condition.

Common inspection areas may include:

• Roofing
• Plumbing
• Electrical systems
• Heating and cooling systems
• Structural components

Your Orrstown Bank Mortgage Officer can help explain each step and keep you informed throughout the process.

8. Close on Your New Home

Closing is the final step before becoming a homeowner.

Before closing, you may:

• Review your Closing Disclosure
• Complete a final walkthrough
• Provide funds required for closing
• Sign loan and ownership documents

Closing costs and timelines vary based on the loan program, property, and transaction details.

Once the transaction is completed and ownership is transferred, you'll officially become a homeowner.