A Quick Guide on What to Look for in a Home

A brand new house

A brand new houseNothing is more fulfilling than having a home to call your own. But before this, you have to make sure that it’s going to be a worthy and regret-free purchase. Homebuilders in Utah share the things you should consider when looking for a home:

Location

The most basic thing to consider in a house is its location. It must coincide with your needs, responsibilities, and lifestyle. Consider your home’s proximity to your work as well as to schools and public transportation. It’s also best if your home is near or at an accessible distance to shopping malls, parks, and other places you often go.

Neighborhood

Your neighborhood is as essential as your house’s location since you’re going to be in it forever or at least for a long time. There are three sub-factors you need to consider: people, noise, and security.

Just by observing what the streets and people are like, you’ll have an idea what your life would be when you move into the neighborhood. Also, it helps to research about the place to know if it’s safe and secure.

Bedrooms and toilets

If you have quite a big family, the number of bedrooms and toilets in a house matters. This ensures everybody’s convenience and privacy are put first.

Natural lighting

The amount of natural light that illuminates a house affects its ambiance as well as electricity costs. Therefore, it’s advisable to look for a house with ample natural lighting.

Heating and cooling systems

Finally, an essential factor to consider in a house is its heating and cooling systems. It’s always less hassle to get a house with established efficient systems for heating and cooling.

With this guide, looking for the best home for you and your family can be a breeze. Just make sure to keep this mind, and you’re on your way to making your future home the most fulfilling investment you’ll ever make.

3 Essential Questions You Should Answer While Searching for a Home Loan

Toy house on top of dollar bills

Toy house on top of dollar billsThe increase of lenders and loan features on the market means that clients now have many options to choose from. That’s great news for homebuyers. As competition increases, interest rates become friendlier. Deciding which loan is perfect for you, however, as difficult as ever, particularly for first-time applicants. Here are three important questions that can help you make an informed decision:

What are your specific needs?

Before you make a final decision, Bonneville Multifamily Capital reminds that it pays to know what loan features are ideal for your preferences. Are you looking to build multi-family rental units, then you are better off taking a Freddie Mac multifamily loan that’s suited for this specific purpose. Of course, you also want to think about whether you’re comfortable with a fixed or a variable rate, as well as whether you may have the need or a repayment holiday in the future.

What’s on the inside?

Don’t let an interest rate that seems awesome fool you. At the end of the day, interest rates are designed to entice clients. It’s what on the inside that matters, so look at all terms carefully. Are there other fees that are attached to the mortgage? Take a particular interest in the mortgage comparison rate as this gives the overall figure you need to pay, not just isolated aspects.

Do you need help?

If you can’t make up your mind, don’t hesitate to ask for help. There are dozens of mortgage brokers around with a vast experience in dealing with mortgages. If you can explain to them what your needs are, they should be able to find the perfect loan for you. They can also help you get preapproved for a loan quickly, as they know the insider secrets of the trade.

While lenders have taken quick actions to meet the specific needs of modern homebuyers, it’s still your responsibility to know as much about mortgages.

 

Utah’s Mortgage Approval Rate Reaches Up to 95% in 2015

Approved Mortgage Loan Application

Approved Mortgage Loan ApplicationMortgage 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%.

High Stakes

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.

More Demand

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.

Homeownership: Is it Right for You?

Woman Giving Keys to New Homeowner

Woman Giving Keys to New HomeownerHomeownership involves more than getting a mortgage and paying for a down payment. Owning a home means getting ready for a new lifestyle. It involves preparing and planning for the long-term to deal with the financial challenges associated with buying a new house.

Before finally deciding to purchase your dream home, it is best to consider your finances and current lifestyle. Below are the signs that homeownership is right for you:

Commitment-Ready

Owning a house is a long-term financial commitment, involving 15 years or more. It is never advisable to buy a house if you only plan to own it for three to five years. This is because the transaction cost of buying and selling properties could lose you money. Buying a home is the right move if you can stay in a single location for 10 years or more.

Reliable Income

Getting a mortgage to finance a house means entering into a financial commitment. Econ Mortgage and other mortgage companies in Utah suggest that it is important to be confident in affording monthly payment 10 or 20 years from now. Having a stable income and a good employment history are essential to keep up with the monthly mortgage payments.

Down Payment Savings

You’ll need significant savings to pay for down payment and other moving expenses. While some lenders accept payments for as low as 3%, it is best to pay 20% to avoid private mortgage insurance (PMI). PMI protects the lender in case you default on the loan, which can cost about 0.5 to 1% of the total mortgage amount annually.

Good Credit History

Many loan companies require applicants to have a good credit score. This only means that having a poor score indicates paying a high-interest rate over the life of the mortgage. It’s always best to have a good credit history or improve your score to qualify for better loan deals.

Homeownership is a big financial responsibility that requires time and money. This makes it even more important to assess your finances and commitment readiness. Be sure that you are both financially and emotionally ready before taking the plunge.

Be Worry-Free: Retiring Mortgage-Free

Mortgage Lending in Baltimore

Mortgage Lending in BaltimoreIt’s always ideal to retire without the financial burden of a mortgage. This is because its means spending your extra money or vacations or in having fun with families or friends. While some retirees don’t mind paying for their home loan, it’s great to have peace of mind and exit the career land mortgage-free.

Here are some ways to retire without a mortgage to pay:

Make Extra Payments

Mortgage lenders in Baltimore note that extra payments can go a long way in paying your mortgage off faster. You can cut on other household expenses and apply the savings to your mortgage. An extra $100 every month can save you thousands of money on interest and pay off the entire loan several years earlier.

Refinance the Mortgage

Paying off a mortgage earlier is possible if you want to switch to a shorter-term. It’s a good idea to refinance a 30-year mortgage to a 15-year loan, especially if you still have more than 20 years left on the mortgage. Your monthly payments will be higher, but you can be loan-free 10 years earlier.

Take on a Roommate

If you got a spare bedroom, consider getting a roommate. The rent from a roommate can help you make extra mortgage payments and pay off the loan more than a decade earlier. Your rental income can also be beneficial in paying utilities such as electricity, phone, cable, and gas.

Consider Downsizing

Retirement is better if you decide to keep things simpler. This means downsizing to a smaller home in the neighborhood where family and friends reside in. The truth is, you don’t need a 4-bedroom house to have a good retirement. A smaller home is more manageable, as you’ll have fewer expenses to deal with.

Whether you’re in your late 20s or mid-30s, retiring without a mortgage sounds like a good goal. You’ll get to have peace of mind and more fun in your golden years. Be sure, however, not to take in more debt just to pay the mortgage faster.

Home Loans Are Many Things, Except These Myths

Home Loan in Minnesota

Home Loan in MinnesotaMinnesotans love mortgage tales, only everyone has polar versions. Two persons could talk about a particular home loan topic but usually end up on a different page. Stories get passed down from one generation to another. Before long, everyone thinks they speak of the truth about interest rates and second mortgages without realizing what they know nothing but tall tales.

But the cycle breaks now

Such misconceptions stick around because people keep talking about them — and believing them. Today, though, you land on this page for a reason — to either validate your reservations or shed light on the most puzzling concepts of home loan.

Whatever your reason, separate facts from these fallacies:

Cash-Out Refi is Free Money

Yes, you can receive hard cash from a refinance, but it comes with a price. Cash-out refinancing is all about replacing your current loan with a new mortgage and tapping your home equity to get greenbacks all in one transaction.

This move allows you to get a lower interest rate and convert a portion of your current home equity into cash for any purchase you want, like a remodel or a purchase of a beautiful home for sale in Plymouth, MN. Not all borrowers, however, can take advantage of this option; you would need first to meet certain requirements the lender set.

ARMs Always Trump Fixed-Rate Loans

False. Both have pros and cons, and they involve a certain level of risk. An adjustable-rate mortgage can be advantageous if you moving in a foreseeable future, as you can enjoy a low initial rate early in your loan term. A fixed-rate loan, on the other hand, offers you stability throughout your term, thus giving you peace of mind your rate wouldn’t increase whatever happens.

In the end, the right choice depends on your financial situation and future plans, says an expert from MN Property Group.

No-Cost Loans are Interest-Free

This is true — if you’re dreaming. But in the reality, the “no-cost” in no-cost loans refer to the closing fees. If you take this type of mortgage, your loan would be free from any closing cost in exchange for paying a marginally higher interest rate. If your budget permits your would-be monthly repayments, you might save a considerable amount when your loan matures and reduce your upfront expenses.

Financial products change over time, so mixing up some details is sometimes inevitable unintentionally. Nevertheless, it’s never an excuse to stay financially ignorant and not help yourself separate truths from tales.

For Millenials: Mortgage Hacks for Your New Home

Mortgage Loan in UtahWhile purchasing and owning a home isn’t something that should be taken lightly, this does not mean that younger buyers or millennials should be reluctant to pursue the great American dream. If you’re gainfully employed, have a solid credit rating, and are thinking of buying your first home, here are some practical hacks.

Loans with Low Down Payments

There are some loans that allow borrowers a down payment of between 3% and 5%. For instance, an FHA or Federal Housing Administration loan only requires 3.5% down payment. However, note that these kinds of loans typically require a funding fee or mortgage insurance that could be financed.

Check and Verify Your Credit Rating

Secure copies of your updated credit reports from known credit authorities like Equifax, TransUnion, and Experian and then review them thoroughly. If you see some errors, report it as soon as possible so the credit bureaus can correct them. To ensure that your credit rating is always on point, pay all your monthly bills on time. This will also help you qualify for mortgages with reduced interest rates, explains a home loan officer in Utah.

Document Your Finances

In order to be eligible for a home loan, you’ll have to establish that you earn sufficient income and that you can make your monthly payments on time. So collect your income tax returns, bank statements, W-2s, and other relevant documents so that they’re ready to go when the lender asks for them.

Save Up for Closing Costs

You can try negotiating with the seller of the house you’re purchasing to pay a fraction of the closing costs, or add the costs to your loan by agreeing to a relatively higher interest rate. Regardless, be ready to pay off some upfront and closing costs.

Manage or Settle Your Student Loan

Lenders utilize the DTI or debt-to-income calculation when determining if you can qualify for a mortgage. This DTI is based on your monthly debt payments and income. So you should manage your student loans and pay your monthly debt payments on time to ensure that you’ll be eligible for a home loan.

Keep these things in mind to avoid costly mistakes, as you navigate your way to hassle-free home ownership. Make sure to do your own research and only accept loans that you know you can comfortably pay off for the years to come.

People are Choosing Personal Loans over Banks

Personal LoanTaking out a loan is always a nerve-wracking process. Feverishly scrambling through your credit history, preparing all the necessary documents and putting on your best business suit — all of these are part of the tedious loan process of banks.

Banking loans require long, complex processes and even then, not everyone is eligible. Your credit history affects the bank’s decision on whether they will grant the loan or not. As such, many people are turning to personal loans from online lenders.

It is not that online lenders do not enquire into a borrower’s circumstances. Groups like Rapid Loans, for example, like banks, will look into a borrower’s background before approving a loan.

Nevertheless, it is still a simpler process than taking out a bank loan. Online lenders are generally less discriminating than banks and are willing to service a larger group of people.

Advantages of Personal Loans over Banks

One of the major advantages of personal loans over banks is the convenience. Online lenders can approve a loan online and the turnaround time is faster. You don’t have to wait for a long time only to have your loan rejected in the end. Most of the time, it’s just a matter of filling out a form and sending it to the lender.

Personal loans also allow for interest rates that are more competitive. Many people take out a personal loan for debt consolidation, which allows them to save money down the line. Instead of multiple debts at varying interest rates, an online loan allows you to combine them all, usually paying with a lower interest rate.

Fewer Risks

Personal loans have to be paid off more quickly than other types of loans. This is because personal loans are usually unsecured. Banks usually ask for secured loans. Mortgages and car loans are secured loans, and the bank has the right to seize your assets if you do not make your payments.

With personal loans, you do not lose your assets. Of course, you will still have to pay off your debts, but there is less risk involved.

A Series of Dealbreakers: Mortgage Loan Mistakes to Avoid

Mortgage LoanNot many have the patience to work for a long time to buy their dream houses. That’s why mortgage loans, as a means to advance this process, are very successful.

But, often, achieving a mortgage-infested house is not a comfortable feeling at all, especially when there’s always the possibility of foreclosure the moment you fail to pay up. So, even before talking yourself into applying for a mortgage loan, it’s important to know the ins and outs of this business.

SGReliableMoneyLender.com shares some mortgage loan mistakes you should avoid at all cost.

Becoming a House Rut

It doesn’t matter if you’re the first among your friends to have a brand-new house if all your monthly income only works to pay up your loan. Chances arer, the longer you lose control over the ability to spend your money normally, the faster you will commit the grave mistake of skipping up a payment period. Don’t apply for a mortgage loan if you have no savings to support your other everyday expenses.

Skinny Dipping on the True Cost of Home Ownership

Owning a house always sounds like an incredible accomplishment, but if you loaned your way to one, then it’s a different story altogether. Rush homebuyers who loan often skip out on the real value involved in owning a house. This is why many folks quickly find themselves drowning in the costs they didn’t know existed before. Again, don’t rush.

Picking Up What’s Already Available

Not exploring your loan options is just the same as asking for trouble. While there are a lot of loans that promise the best rate imaginable, it’s still better to manually talk to each and every bank or lender you can think of. Learn to compare and measure your options well. If you can bargain, then bargain for your advantage.

Narrowly Focusing Only to the Interest Rate Cost

Like any loan, interest rates are only a part of the larger creation. For mortgage loans, you should also consider looking into the annual percentage rates (APR), which is actually the place where most of the cost kicks in. An APR can show you the exact amount you have to pay.

When you consider the many pitfalls of mortgage loans, it makes waiting for your dream houses a little more bearable.

3 Biggest Mortgage Lies Unbelievably Believed Until Today

Mortgage in Salt Lake CityFor Utahns outside not in the business of home loan lending, the mortgage industry can be mysterious topic to handle. One, the financial products is downright overwhelming. Two, the number of fees associated with a single loan is impossible to learn in a single sitting. And last, the many policies and requirements among lenders make it daunting to know which credentials are generally deemed “ideal.”

This reality makes mortgage shopping difficult. Without being savvy enough, you might regret this single bad decision forever — at least for several years. For starters, forget about these lies if you want to make a sound choice:

The Lower the Down Payment, The Better

Altius Mortgage Group and other lending companies noted that most mortgages in Salt Lake City, Provo, and Orem require a certain amount of down payment. Remember that simply because you’re allowed to pay 5% of the sale price doesn’t mean it’s a boon. Well, it could be since you could buy the property within a shorter period, but it might not build enough equity on it.

If the real estate market in the area turns sour down the road, you might wish to go back in time and pay a larger down payment to have more equity on the property to begin with.

A No-Cost Mortgage Is a Scam

Any lender promising that you wouldn’t be paying for closing fees if you go for a no-cost mortgage is telling a tall tale. This type of arrangement technically removes all out-of-pocket expenses at closing, but do you honestly believe anyone would generously pay such costly fees on your behalf? Of course not. The removal of closing costs definitely comes with a price. In exchange, it would slightly increase your interest rate. Which bargain makes more sense to you? If for you to do the math, and decide.

Refinancing Is An Automatic Money-Saver

If a refinancing guarantees savings to any homeowner no matter what, then all Utahns should’ve jumped on the bandwagon. It can be disadvantageous in some situations, however. Before you refinance, consider three things: until when is the breakeven period, the amount of rate reduction, and even your future life plans. If you are planning to move out of your house in three years and refinanced it with a vaguely lower, fixed mortgage, your efforts might be rewarded with thousands of savings.

The mortgage landscape in the United States is ever changing, and it’s nearly impossible to master its ins and outs even in a lifetime. It’s always in your best interest to work with an experienced broker to assist you every step of the way.