First-Time Homebuyers Guide to Allentown PA

This article originally appeared on statusborn.com

Allentown is a nice and lively city that is becoming quite popular with first-time buyers. It has a rich history, cultural diversity and a well-developed real estate sector. This city has transformed from its tree-lined neighborhoods to a growing arts community making it a desirable location for those who wish to settle down in the suburbs while still enjoying the conveniences of the city.

From government institutions to schools, shopping, and entertainment, Allentown offers everything that one would expect to find in an urban center without high costs. Once you make the decision to look into Allentown PA real estate, you should take the time to research the area and the market, as well as the procedure for buying a home.

In this article, you will find the various factors you need to take into account, as well as a few helpful hints for buying your first house in the Queen City.

Why Choose Allentown?

Allentown is part of the Lehigh Valley, which is the third largest metropolitan center of Pennsylvania. It abounds with a variety of different lifestyles, urban or suburban. Travel to big cities like Philadelphia and New York City is also quite convenient as they are both only a two hour drive. But aside from these benefits, here are a few good reasons why first-time homebuyers should consider Allentown:

Prominent Community Environments

Families often flock to Allentown because it functions as a Center City with a number of family-oriented suburbs. Residents have beautiful parks, great schools, and a variety of social activities.

Growing Economy

The city has experienced great regeneration in the last few years which has consequently, created more job opportunities, a better economy, and the need for more housing.

Variety of Cultures

The cultural character of the city is exhibited through the food, local activities, and civic events. Allentown offers several historical places, numerous museums and theaters, and a vigorous local arts scene.

Understanding the Allentown Real Estate Market

It is recommended that anyone looking at Allentown PA real estate first studies the dynamics of this particular market to understand the current prevailing trends. The reasonable price of property here makes this market favorable for first time home buyers.

Average Home Prices

Recent information suggests that the average home price in Allentown is about $250,000. However, those figures can fluctuate depending on the exact area and style of home you are interested in.

Popular Neighborhoods

Among the most desired neighborhoods in the region are West-End, Old Allentown, and East Side, along with many others. Each offer a number of different and unique amenities to homebuyers, so interested buyers have a lot of options to weigh.

Competitive Market

Right now, Allentown’s housing market trends are competitive, and properties change hand at a fast pace. It is not uncommon for houses to receive multiple bids. Working on getting the financing pre-approved and securing the services of an experienced local realtor is highly beneficial.

Financing Your First Home in Allentown

For first time home buyers, looking for a strategy to finance their home is fundamental. There are numerous types of loans and programs offered in the state of Pennsylvania to those who are buying their first home:

Conventional Loans

These are the standard loans offered by traditional lending institutions. A decent credit score is often a plus, as is a down payment to the range of 5% to 20%.

FHA Loans

Administered by the Federal Housing Administration, it is possible for first time buyers to obtain these loans with lower down payment (3.5%).

VA Loans

VA loans are available to veterans and active-duty military members for lower down payments and mortgages without PMI.

USDA Loans

These loans are geared towards people buying houses in rural areas and could be applicable for those that are interested in property on the outskirts of Allentown.

Pennsylvania Housing Finance Agency (PHFA) Programs

PHFA has a number of programs set aside specifically for first-time homebuyers, including down payment assistance, closing cost assistance, etc. The Keystone Home Loan Program, in particular, is highly beneficial to qualifying individuals.

Steps to Buying a Home in Allentown

Purchasing a property can be a daunting experience. However, breaking it down into small, simple steps goes a long way in reducing stress and streamlining the entire process:

Determine Your Budget

The very first thing to do before viewing Allentown PA real estate is to put your finances in order. This includes evaluating your earnings, current obligations, and how much money you can use for a down payment. A mortgage calculator can help with exact figures.

Get Pre-Approved for a Mortgage

A pre-approval for a home loan is beneficial in that it shows a seller that you mean business, increasing your chances in cut-throat markets. It consists of checking your finances with a lender and then issuing a letter detailing the amount you have been approved to borrow.

Find a Local Real Estate Agent

If you are planning to purchase a home in Allentown, it is wise to work with an experienced agent who is familiar with the area. They provide assistance during the different phases, help you find the right neighborhood, and advocate for your interests with sellers.

Start House Hunting

The next step is to initiate the search process by outlining your essential and optional features of the prospective property. Such factors may include distance to your workplace, school districts, or the resale value in the future.

Make an Offer

Once you locate a property you both like and can afford, it’s time to negotiate a reasonable offer. Due to the competitive market of Allentown, it is recommended that you quickly move and, when necessary, be flexible during negotiations.

Home Inspection

Once your offer has been accepted, the next step is to schedule a home inspection, which will alert you to any red flags. It is a critical step as it will help you avoid unnecessary repair costs later on.

Closing

Assuming that everything else is in order, the final step is the closing. This is where you will sign all the required papers, make the closing payments, and finally get the keys to your new house!

Is Allentown PA Real Estate Right for You?

Owning your first property in a place like Allentown, PA is a thrilling endeavor. Provided that you prepare properly and understand the market, you can find a place that both meets your expectation and fits your budget.