When applying for a mortgage loan in Utah, it’s in your best interest that you get the best possible terms on the market. Utah is of the hottest real estate market in the US, and the prices have gone up 14 percent since 2018. Experts project that they will rise a further 8 percent by 2020.
That means you’ll be paying upwards of a quarter of a million dollars to realize the dream of owning a home. If you’re to raise the recommended 20 percent deposit, you would have to finance up to $200,000.
1. Don’t rush through the process.
Failing to prepare for the home owning process is just about the worst possible mistake you can make when looking to transition into a homeowner. It means you’re likely to grab the first mortgage offer that comes your way. You need to know that qualifying for a home loan doesn’t hinge on luck.
Therefore, you shouldn’t be surprised or flattered to find out that you qualify for a loan. The state of your finances dictates your eligibility for one and the total amount that you can borrow. As such, it’s vital that you take a moment to understand how the mortgage process works.
Deep insights into the factors that influence mortgage eligibility, loan amount, and interest rates are crucial when applying for one. You need to know the various mortgage plan available and how each one affects the final home price. That might seem like overkill, but you can never be too careful when large sums of money are at stake.
2. Whip your finances into shape.
The first step when looking to buy a home is to pull your credit report. The credit score is a three-digit figure that ranges from 300 to 850 that is indicative of your financial strength. Scores of 700 and above are good, but anything over 800 is excellent. Most score hover between 600 and 750.
Your credit report details your credit history including your old and current debt as well as the history of payment. Sometimes these reports are laden with errors, and this leads to a lower credit score. Asking for one gives you a chance to identify and correct the mistakes — the easiest way to boost your credit score.
Given that having a good or excellent score is crucial to getting the best mortgage terms, it’s vital that you consider raising yours if it’s on the lower side. In most cases, it would mean lowering the amount of debt you’re carrying as well as reducing the income to debt ratio. Lenders are skittish lending to people struggling with huge debts.
Getting approved for a mortgage doesn’t hinge on luck or chance. It all boils to the state of your finances, a factor that is firmly within your control. Therefore, you have the power to determine the terms you get when applying for a home loan. With the right strategy, you can whip up your finances into shape and get the best possible terms during your mortgage application.