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:


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.

Why Refinancing Your Mortgage Today is a Good Move

Refinance Your Mortgage on a Card

Refinance Your Mortgage on a CardThere are instances where refinancing your mortgage becomes a viable option and in fact can bring you many benefits. So if you are looking for some additional funds for other expenses, refinancing could be the answer.

If you are a homeowner with a mortgage, you might be considering refinancing your mortgage. Many people refinance for a variety of reasons. Some want their monthly payment decreased while others want to shorten their loan term. Some others refinance to fund their home renovation project.

There are plenty of practical reasons refinancing your mortgage may be a good move for you. Read on to find out more.

Falling Interest Rates

Research shows that there is a downward trend with regards to interest rates. This situation alone is enough to convince you that refinancing at this point could be a great option. There is a big chance that your old mortgage interest rate is higher than today’s prevailing rate. If so, refinancing your mortgage will effectively lower your interest rate.

Decreased Monthly Payment

There are instances where in spite of an unchanging interest rate, you still would want to refinance your mortgage in Utah. For example, you want your monthly payment reduced because you believe it might be difficult for you in the future to keep up with the same amortization. In this situation, you could refinance your mortgage for a loan term that is longer than what remains on your present mortgage.

If one or all of these practical reasons fit your current situation, you might want to consider refinancing as a good option. Perhaps you want your mortgage to be fully paid quickly or maybe you want to lower your monthly amortization. Regardless of your purpose, refinancing can provide you with many financial benefits.

3 Must-Hire Experts When Buying a Home

Real Estate Agent in FloridaBuying a home can be a long and tedious process. Some people underestimate just how complicated it can be. That’s why they go about it without really preparing themselves for all the decisions and expenses that come along the way. If you don’t want to make the same mistakes as the unprepared buyers, you need to work with professionals to help you throughout the process.

Here are three professionals that you must work with for a smooth and faster home buying process:

Real Estate Agent

A real estate agent will always be number one on the list of experts you need when buying a home because they are responsible for guiding you from the beginning up to the end of the process. They have all the knowledge, expertise, experience, and connection to make your life easier. From giving you access to exclusive home listings to negotiating with the seller on your behalf, you won’t regret hiring one that’s credible and dependable.

Mortgage Lender

If you are part of the majority who can’t buy a house in full, then you need the help of a mortgage lender to give you the best mortgage loan based on your credit, income, and financial capabilities. As different lenders will give you different rates and terms, Primary Residential Mortgage, Inc. says that it’s best to consult with three to five before choosing which mortgage loan is the right one for you.

Home Inspector

When you’re nearing the end of the home buying process, a certified home inspector is necessary to make sure the house you’re buying doesn’t have hidden damages that you’ll be responsible for if you don’t uncover them before finalizing the deal. A home inspector will inspect every nook and cranny of the house. If there is any damage, you can renegotiate the deal or ask the seller to fix it first before you buy the property.

With the help of these three professionals, you’ll have more peace of mind throughout the whole process up until you buy the home of your dreams.

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.

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.