Few states have the number of great metro areas and the sheer diversity of Pennsylvania. One of the fastest growing towns in Pennsylvania is Hazelton. Located just north of Allentown and just west of New York City, Hazelton is a great choice for those looking to live a somewhat rural life, but who still want to have easy access to multiple major cities. If you already call the great town of Hazelton home, you might be interested in learning more about a great home equity loan or maybe even a refinance. If you are thinking about relocating to Hazelton, you might be in need of a first mortgage. Here are a few helpful tips to get you on your way.
Refinance
When you apply for a refinance to your current mortgage, one of the best parts about the whole process is that, for most people, it is simply a matter of getting the paperwork processed, getting the right forms in and waiting for an approval. The approval rate on refinances is much, much higher than the rate on first mortgages. Why? Almost everyone, once they own a home and are further along on the path of their careers, is in better financial shape now then they were when they applied for their first mortgage, therefore approval for a refinance is simply a matter of time. The real question when it comes to your refinance is the terms you will receive. One of the biggest parts of your current financial picture that helps the lender decide what terms to give you is the amount of savings and investments you have. This can be a tough spot, even for those looking to refinance who find themselves is significantly better financial shape now then they did when they applied for their first mortgage. Here is why:
It is a classic trap; which one is more important? The real answer is they all are. Try to do as much of the above while still having enough to show the bank you are covered in case of an emergency.
First Mortgage
Personal savings are a big part of getting your first mortgage, too, but if you have little to no savings to your name, do not be too concerned, the overwhelming majority of first time home buyers do not, either. That is why over half of all new homes bought in the US today end up having to get private mortgage insurance because they do not have the savings to pay the 20 percent down payment that most lenders request. While savings is always important to have, owning a home and building equity is more important. If you have the savings great, if not, do the best you can, and your lender will understand.
Home Equity Loans
Savings is important to your home equity loan, too, but in a different way. The more you have saved for your big project, the less you will have to borrow from your home’s equity. The less you borrow, the quicker you will pay it off.
If you would like more information on getting a home equity loan, a refinance or a first time mortgage, please fill out the form below and one of our experts will contact you.
