Buying a Home in Scranton PA
If you’re looking for homes for sale in Scranton PA, chances are you’re interested in buying a home. It’s not always easy being a first-time homebuyer in this market because you have the pressure of family telling you it’s time, the nagging feeling that it’s too soon, and these factors combined can lead you into a poor deal.
Northeast PA Real Estate is booming, and there are a ton of great opportunities for first-time homebuyers. We’ve helped hundreds and hundreds of people who were wet behind the ears in the real estate market, get into their forever home, or even just a starter home.
Before you reach out to one of our exceptional agents today, take a look at these tips to familiarize yourself with the process.
Ask Yourself If You’re Really Ready to Buy
So many of us have faced this situation, and we see this happen to families every day. They come into our Christian Saunders Real Estate office or call us up, and we find that their family, in-laws, or whoever is pushing them into buying a house because they believe it’s “time.” Don’t let this happen to you.
Discuss the options with your significant other or whoever it is you plan to buy with. Be sure that you’re prepared for the responsibilities of homeownership. There are many options out there if you aren’t. Maybe you’ve outgrown the current space you’re living in?
If that’s the case, reach out, and we’ll help you find a bigger rental, and we can still discuss homeownership and help you decide if you’re ready.
The bottom line is, don’t buy just because someone is making you feel like you have to.
Figure out How Much You Can Afford
Homeownership is typically the most expensive thing a family will ever buy. Most people need a mortgage to do so. Thankfully, so many houses for sale in Scranton PA are really affordable. It’s not uncommon to find a move-in ready, three-bedroom house in the city for less than $100,000.
That said, you’re the only one who knows your income and what you can afford. We have a useful mortgage calculator to help give you a quick idea of how much house you can buy. You need to also factor in a few different things:
Down Payment
Your down payment is a big factor that will determine how much you have to pay on your mortgage each month. The higher the down payment, the less house you need to put on the loan. As a result, you have a lower payment.
The magic number with a down payment is around 15%, so in the event of that $100,000 home in Scranton, that would require a $15,000 down payment. That’s a lot of money, I know.
Keep in mind that there are no clear cut answers to anything in real estate. It’s all negotiable, and we’re always on your side. If you don’t have a 15% down payment, that’s okay. We will always work with you to make something happen. Everyone at Christian Saunders Real Estate believes that everyone deserves to own a home, regardless of your income or any other factor.
Taxes
Taxes are a hot button issue for everyone looking at homes for sale in Scranton, PA. What’s most important is that you’re aware of them and how they’ll determine how much you can afford. Many young families are buying homes in Scranton because their overall cost is low, but they forget when they escrow their taxes and how it will impact their monthly mortgage payment.
The current property tax rate in 2020 for Lackawanna County is 1.43% and the average home price is $137,100. In that case, you would pay approximately $1,954 in taxes across 12 months. If you escrow your taxes and add them on to your monthly mortgage payment, that would add $162 to your mortgage each month.
Determine What Type of House You Want
I’m not talking about deciding between a Victorian or a Contemporary, I mean between something that’s move-in ready and something that needs some work. We have a nice mixture of houses for sale in Scranton, PA.
Many investors have come in and updated some of the homes, so we see a lot more move-in ready houses in Scranton, popping up. Of course, that comes with an added cost.
In some cases, it’s more affordable and economical in the long-run to buy a house that needs a little work. I always tell the families I work with to try and find a home that needs little work in the kitchen and bathroom but more work in the bedrooms and living areas.
The most expensive repairs and updates you’ll run into come with the exterior of the home, kitchen, and bathroom. If you can find a home that needs limited work in those areas, but might have old carpet, wood paneling, and outdated features in the living room, you’re golden.
Get Pre-Approved
One of the first “real” things you’ll have to do when you decide that you’re ready to buy a home in Scranton is getting a mortgage pre-approval. The lender will run your credit, verify your income, look at your debt to income ratio, and some other factors to determine your financial readiness to take on a mortgage.
There are a few things you’ll want to do on your end to prepare yourself for this:
1. Check your credit - I’d suggest getting a free credit report from a place like CreditKarma to see where you stand. Most lenders require a minimum score of 620, but of course, the higher, the better. A low score will cause you to have to pay higher interest, which is not a good strategy in the long term.
2. Look at your history - If your credit isn’t where you hoped it would be, find out why. Look into any accounts that are past due, get caught up on credit card payments, find out if you have anything in collections, and don’t be afraid to dispute something that doesn’t look right.
3. Determine your DTI (debt-to-income-ratio) - The DTI is your percentage of income that goes to paying off debt like credit cards, car loans, etc. The lender will then factor your mortgage on top of this.
4. Get all your paperwork together - You’ll need proof of income if you are buying the house with another person they’ll need proof of income as well. It generally helps to have at least two years of continuous employment with the same employer, but there are always exceptions to the rules.
Buying Northeast PA real estate lends you a few different options in terms of lenders. You can also choose to work with a mortgage broker who will help you if you don’t have the ideal credit score, down payment, or work history. Just keep in mind that these individuals charge for their services as well.
Ensure You’re Working with the Best Agents
Christian Saunders Real Estate has some of the best agents in the area, and we all come from varying backgrounds and upbringings. The most important factor is hiring an agent who understands the area and knows what to look for. We’ve all lived here for a long time, and we’ve sold many homes in Scranton, PA.
We are NOT the type of agency that will go the extra mile to push you into a home that you don’t belong in. Our agents are here to get you into the right house. If we see something during a showing that doesn’t seem structurally sound or we think you’ll run into problems down the road, we’ll always tell you, so you don’t feel like you got a bum deal.
That’s the big difference in working with Christian Saunders Real Estate. We’re not in a hurry to sell you a house; we’re in a hurry to see you in a home.
Enough tooting my own horn, though. You get what I’m saying here. You need the right agent, and some are better with certain circumstances than others.
When I bring a new agent onto our team, I look for the following character traits:
Patience - To help you understand the process.
Experience - To ensure you find the right house.
Negotiating Skills - To guarantee you get the best deal.
Morals - To always look out for your best interest first.
See Some Homes
So, you’ve decided you want to buy; you have your pre-approval in hand, you’re ready to look at some Northeast PA real estate. Now it’s time for the fun part!
There are many homes for sale in Scranton PA to appeal to people of all different styles and desires. Don’t be afraid to see a variety of different houses. I think the best strategy is to have a set of “non-negotiables” and pair them with a few “desires.” For example:
Non-Negotiables
- Four bedrooms
- Two bathrooms
- Two car garage
Desires
- Partially finished basement
- Big back porch
When you provide your realtor with a list of things you need and some you want, it makes it easy for them to find a select number of homes with the criteria you desire. It might narrow down the options, but you’ll be able to imagine yourself in every home you see.
The Next Steps
There are so many homes for sale in Scranton, PA, and we see more and more pop up every day. There’s never been a better time to buy, and when you’re working with Christian Saunders Real Estate, we’ll always look out for your best interest.
The next steps include putting in an offer, dealing with counter-offers, finalizing the deal, starting with the mortgage paperwork. The rest of the steps are highly involved, and I’d like to do an article on each of those individually, so stay tuned for those!
If you’re even thinking about buying, give us a call today. There’s no pressure, and we’ll help you determine if now is the right time in your life to get into homeownership!