While interest rates on mortgages have been so low for years, shopping for a loan is still a tricky process, especially if you’re a first-time home buyer. But don’t fret. The following tips will help you navigate the rough waters of mortgage shopping, and they will save you money and time.
1. Determine what you can afford.
Review your budget to determine what you can afford to pay for a house, including the home mortgage loan, insurance, property taxes, and utilities. In general, your total debt payments should not be more than about 36 percent of your income.
2. Compare loans from lenders.
You can get a home loan in Utah from mortgage brokers or lenders. Brokers arrange home mortgage loans with lenders rather than lend money directly to consumers. Brokers and lenders offer different fees and interest rates to different consumers for mortgages.
3. Fill out a loan application.
A mortgage application helps the lender decide whether to lend money to the consumer. The home loan application form asks for information about you and the property you want to purchase and requires documentation about your finances.
4. Get advice from an attorney.
A house is one of the biggest investments you will ever make. Don’t be afraid to ask for help. Speak with an experienced real estate attorney before you sign any paperwork. Buying a home involves the law of real property, which raises issues not present in other transactions. Real estate attorneys are trained to deal with these issues.
5. Obtain a copy of your credit report.
Check your credit report to make sure there aren’t any errors. If there are errors on your credit report, you could be missing out on several points that will make a difference when you apply for a mortgage. Your credit rating is one of the most important factors in determining if you will get approved for a mortgage, as well as what kind of rates you qualify for.
The mortgage process can be incredibly intimidating, especially for first-time home buyers, but it doesn’t have to be. It is far less complicated if you take the right steps in advance. Search for a broker or lender in your area to get started on your new home adventure.