Mortgage Law in Pennsylvania
Mortgages are a specific type of secured loan, where the security is the piece of property bought with the loan. In West View, Pennsylvania, most mortgages are taken out to buy houses. The seller of the house is paid by the bank, and the buyer, in exchange, agrees to pay the bank back in installments, with interest. If they refuse to make these payments, the bank can seize the house.
Taking out a mortgage and buying a house is not a decision to make lightly. Nonetheless, mortgages serve some very useful purposes. Because houses are so expensive, it's impossible for most people to buy them by paying the whole price upfront. A mortgage ensures that the seller gets paid immediately, and that the buyer is able to pay the purchase price over a long period of time, in manageable installments.
When you buy something with an interest-bearing loan, you will, of course, be paying more than the actual purchase price when all is said and done. After all, lenders are businesses, and seek to make a profit in exchange for a service they provide. They present financing for the purchase of the home, and, in return, they are repaid the purchase price, plus interest.
Nonetheless, to many people, this extra cost is worth it. After all, without mortgages, few people would ever be able to buy homes, if paying out of pocket is the only alternative.
Getting a Mortgage in West View, Pennsylvania
When trying to get a mortgage in West View, Pennsylvania, it's important that you have a good credit history dating back as far as possible. The better your past record of paying back loans, the more likely a bank is to assume the risk of loaning you hundreds of thousands (or more) dollars to buy a house.
The vast majority of lenders will require a down-payment before issuing a loan. This is some up-front payment that represents a percentage of the purchase price. You should confirm that you have enough money saved up to cover the down payment on a house, if you are considering buying one. This will keep the down payment from straining your finances too much.
It's also important to be realistic about your financial situation when calculating monthly payments. Obviously, a more expensive house will result in higher mortgage payments. While buying a house on credit may tempt you to get something more expensive than you can really afford, you should resist this temptation. Having a big, expensive home won't count for much if you can't make the payments, and it gets foreclosed. You should make a reasonable accounting of the expenses associated with home ownership. This includes mortgage payments, property taxes, and others.
When you have researched the issues completely, the time to finalize the mortgage agreement. When this happens, the deal is pretty much final, and cannot be undone. Therefore, you should make sure you know exactly what you're getting into before you reach this point.
Can a West View, Pennsylvania Real Estate Attorney help?
Buying a home is a very, very important decision, and will probably have lifelong consequences. For most home-buyers, these consequences are positive. If you want to fall into that category, as well, you should not hesitate to hire a reputable West View, Pennsylvania lawyer if you have any questions or misgivings.