Tips for Getting a Mortgage on Your Second Home in the Poconos
Are you 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?
Maybe 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 investment?
Sometimes getting a mortgage on your second home can be a challenge.
Generally, a 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 Mortgage Banks – Featured Poconos Banks for Mortgages
Local Savings Associations and Banks who typically do not sell their mortgages.
ESSA 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
Peoples 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 Mortgage specialist.
First 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
What Most People Don’t Know About Mortgages on Their Pocono Mountains Home
When 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 home buyers 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.
Here are a few of the important things that many people don’t know about mortgages and how they work:
Mortgage Rates Can Vary Depending on the Day
Did 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 â€“ take your time to shop around .
The Biggest the Down Payment, the Better
Don’t 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.
Lender Fees Are Open to Negotiation
When 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.
Pre-Qualified Doesn’t Guarantee Financing
You 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.
These 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.