Mortgage loan applications in Utah has an up to 95% chance of gaining approval, as the state the second highest number of applicants per 1,000 people in 2015, according to an analysis of data from the Home Mortgage Disclosure Act.
The state’s approval rate has placed it on a comfortable spot against the nationwide average of 88.2% during that year. Those living in Florida, however, had the lowest percentage of approved mortgage applications at 82.9%.
Competitive mortgage rates in Utah and the huge demand for homes in the state are only some of the factors that reflect the number of applications. The analysis showed that there were 17 applicants per 1,000 residents in 2015, the second highest number for that year.
Colorado ranked first in terms of mortgage applications with 18.2 people per 1,000 applicants that sought to get a loan, while New York had the lowest number at six applications per 1,000 New Yorkers.
Home sales and prices are expected to increase further in 2017 partly due to a strong momentum in the previous year, according to an industry report by Jim Wood, a University of Utah’s Kem C. Garner Policy Institute economist. Sales of existing single-family homes rose 1.3% to 13,600 units in 2016, which represented the biggest sales figure for such properties.
The increase, however, does not paint an entirely bright picture. Wood said that if home builders fail to deploy more homes to meet an excessive demand, there is a possibility for a housing shortage to become a sociopolitical issue.
Applying for a mortgage in Utah has become much easier thanks to increasing competition among lending companies. These loan providers are finding ways to attract clients by offering compelling rates and improved services, so it’s up to you to decide which package works best for your home purchase.
Buying a home is probably the single biggest investment you will make in your lifetime. Thus, it is important that it is worth every penny you spend. Following are some tips on finding the right home loan that will make your home purchase cost-effective.
Altius Mortgage Group recommends shopping around for the best home loans Utah lenders offer. There are at least a thousand listed lenders and brokers in the state, and diligently doing your homework may save you thousands of dollars that you may otherwise spend for loans with high-interest rates and/or fees.
Never go for brokers that will encourage you to lie or commit fraud by making you obtain a loan purportedly for business purposes when it is, in fact, a loan for family, household, or personal use. Some companies do this to work around the rescission period where you can cancel a loan you obtained secured by your primary residence. The scheme is also used to avoid the requirement for disclosing important information.
Be Wary of Misleading Statements
You may see some lenders using the phrase “no cost to you.” This means there are no out of pocket expenses that you have to cover at closing. However, they will add the closing costs to the total balance of your loan. Before signing up, make sure that you understand all the fees you will need to shoulder whether or not it is added to the loan balance. It is up to you to make sure that you are not getting a raw deal.
Beware of Pre-Payment Penalties
If your credit rating is good, you do not have to go for a loan containing any significant pre-payment penalty. While the contract may stipulate that you can pre-pay the loan at any time you wish, you may be required to pay the lender several months’ worth of interest.
These are only a few tips you can use when selecting from among home loans Utah lenders offer. The key is to carefully weigh your options and choose the ones that will be most beneficial for you in the long run.