Scranton Home Loans

Making a decision to buy a piece of property, whether it is landed property or an apartment, is a big one. It is also the beginning of exciting times as you plan the use of the different parts of your home and shop for all the relevant furniture and fittings that will make your home yours. But it is also useful to remember that the acquisition of a home is laden with financial responsibility. This will need some careful planning and structuring in order to ensure that you are able to take on this responsibility effectively without unnecessary burdens.

Exploring home loan options
With the financial services sector being so competitive, the opportunity to obtain a great home loan at competitive rates is very high. Market driven and customer-centric, most financial institutions now go out of their way to assist potential borrowers in terms of making the application, preparing the relevant documentation and selecting the best home loan to fit the borrower’s requirements.

Before making a decision to commit to any one financial institution, it is always useful to explore different options. You can do this either with direct reference to your own bank, or, if you are feeling a little more adventurous, you can look at the different options available on the internet. This will allow you the opportunity to see what is available in the marketplace without necessarily having to deal with one persistent representative from any one bank in the first instance.

Once you have a working knowledge of what is available on the market, in terms of loan amounts, types of home loans and current rates of interest, it is useful to then explore what your financial commitments already are, and whether taking a home loan, and the amount and duration of the loan, is going to negatively impact on this.

If you are currently renting premises, for example, you will want to consider the option of buying, simply because the payments that you currently make in monthly rentals go toward enriching another person’s life, and allowing that person to acquire property at a minimum cost, since he is able to use the rental amounts that you diligently pay to finance his home loan installments! Use that money instead as part of your monthly installments for the acquisition of your own home, as ultimately the property, which is an asset, will belong to you.

Factors to consider when deciding on a home loan
There are a variety of factors that will influence your decision about which type of home loan to use. If you are employed full time and have a fixed monthly income, then you should factor about 20 to 25 percent of your income as money that will be used to repay a home loan. What this means in real terms is that you should, therefore, consider the value of the property you are planning to purchase, determine the amount that you can lay down as the initial deposit for the acquisition of this property, and convert the remaining amount into a home loan. The higher the deposit that you pay, the lower the home loan amount and the less interest you will end up paying for the loan in the longer-term.

In addition, you will need to find out about your creditworthiness. If you have good credit standing, this will benefit you, as you will be able to access home loans at the standard market rates. If, however, you have no credit standing (not having taken loans before) or have poor credit standing (because you have not been able to meet those earlier financial obligations in a timely manner), then the rates of interest that may be charged will be slightly higher.

Other financial obligations that may arise in the course of home acquisition
There are also other ancillary financial obligations that may arise in the course of purchasing property. If you are opting to purchase a brand new home, then you will need to factor in expenses for fittings. The alternative of course is to purchase a pre-loved home. These will normally come with all these things sorted out in the first instance, and you can then take your time to adjust these as and when the cash is available.

Other costs include legal fees and miscellaneous administrative fees that the financial institution may charge as part of its service. Don’t forget the costs of moving. But once you are safely ensconced in your perfect little nook, don’t forget to pop the champagne and have a little celebration comprising of love, laughter and pride at your first property acquisition.