for Getting a Mortgage on Your Second Home in the Poconos
buying a Poconos Vacation property as your second home? Perhaps
you are looking for a small cottage or apartment where you
can escape to for your vacations, or maybe you want to have
another home closer to your relatives?
you want to rent out your Poconos second home and
make a steady income from your investment. Whatever the reason,
a second piece of real estate can be a fantastic
a mortgage on your second home can be a challenge.
mortgage lender will have tougher standards for second home loans
than primary home loans. This is because usually when you are buying
a second home your finances will be stretched thinner and you will
have less money to spare because you are already paying a mortgage
on your primary home. This will mean that your second home mortgage
can be harder to get and might have a higher interest rate.
Here are some
tips to keep in mind that will help you to get the best mortgage
on your second property:
Build up a decent amount of savings. Your mortgage lender will want
to be able to see that you have a large amount of savings so that
you will have enough to pay for the mortgage even if you were to
lose your job.
Pay off any credit card debt . Many lenders will
be hesitant to approve your second home mortgage if they see that
you have a lot of debt on your credit card. They will want to see
that you have a low debt to income ratio so that you will be able
to pay back the loan.
Use the first mortgage as a good reference. If you have always made
your payments on time and you are most of the way through paying
off your first house, you could ask someone from your current mortgage
company to vouch for you. The lender for your second mortgage will
be reassured that you are a reliable person to loan money to.
These are just
a few tips to keep in mind in order to make getting a mortgage for
your second property as easy as possible. To find out more about
investing in Pocono property, contact me at USARealty@USARealty.net
or phone me at 570-517-2428.
Poconos Banks for Mortgages
Savings Associations and Banks who typically do not sell their
Bank & Trust (ESSA) - 744 Main Street, Stroudsburg
and South 8th Street Stroudsburg, PA 18360. Nine branches:
Brodheadsville, Bushkill, East Stroudsburg, Marshalls Creek,
Mt. Pocono, Tannersville, Brodheadsville (Mr. Z's), Eagle
Valley, Rt. 611 (Stroudsbsurg), Blakeslee and in a Mr. Zs
supermarket in Pen Argyl. 570-421-0531
Security Bank - Penn Security offers fixed or adjustable
loans at extremely competitive rates. With private mortgage
banking officers dedicated to helping you with the right mortgage
for your situation, Penn Security is your friendly Poconos
Keystone Community Bank - Main Street, Stroudsburg.
Checking, savings and business banking. Local hometown service
and in-depth knowledge of the local business market. 570-424-9700
it comes to buying a home in the Poconos Mountains of PA, many people
are unaware of the basic facts of how their mortgage works. A survey
by Zillow indicated that more than one third of potential first
time homebuyers don't understand the most fundamental details about
their mortgages. This lack of understanding could cost you thousands
of dollars, so make sure that you understand your mortgage before
you make a serious financial commitment.
are a few of the important things that many people don't know about
mortgages and how they work:
Rates Can Vary Depending on the Day
you know that mortgage rates can change daily? Simply by monitoring
the changes in these rates, you could enjoy the benefit of saving
a lot of money. Even a small percentage of difference could add
up to thousands of dollars that you end up saving per year. This
is why you shouldn't choose the first rate you see ā€“ take your
time to shop around .
Biggest the Down Payment, the Better
think you need to save up a lot of money on a down payment? The
truth is that the more you can save up for a down payment
, the better you will be in the long run. You will own
a larger stake in your home, you can take out a smaller mortgage,
your monthly payments will be smaller and you will end up paying
less interest over the life of the mortgage.
Fees Are Open to Negotiation
you apply for a loan, you will need to pay lender fees. However,
most people don't realize that they have the ability to negotiate
their lender fees . The fees are different from one lender
to the next and they are always open to negotiation so don't be
afraid to bargain.
Doesn't Guarantee Financing
might be pre-qualified¯ for a loan, but this doesn't mean that you
have secured financing on your home. Many people think it does,
but it only means that the lender has calculated approximately what
you can afford. You will not have secured your financing until the
lender has officially approved your loan.
are just a few examples of important mortgage info that most people
might not know. If you are looking to purchase a Pocono Mountain
Home, contact us for more information at USARealty@USARealty.net
or call us at 570-517-2428.