Prepare for Your Salt Lake City Mortgage
Most people need a mortgage to buy a home. Even people who have been through the mortgage process before probably don’t do it very frequently, and can often use tips and reminders on what to expect. A little preparation may make the road to home ownership much smoother.
Get a Copy of Your Credit Report
How much a bank will lend you and the rate are very dependent on your credit score. A number of credit companies provide one free copy of your credit report a year, and getting a copy of yours is a good idea before applying for a mortgage. If you have had credit problems in the past, it makes a lot sense to work on improving your score before you try to secure financing for a home. Paying off credit card debt and any other loans can assist in bettering your score. Sometimes there are errors on credit reports that lower people’s scores, even though the information is wrong.
Do Preliminary Research on the Real Estate Market
Purchasing a home can be time consuming. In addition to all the mortgage paperwork, finding the right property may also require a significant amount of time. If the type of house you are looking for is not available in your price range, one alternative strategy is to wait and see if the market changes. In fall and winter, prices may be lower than spring and summer when there is generally more housing inventory available. People selling their home in the fall and winter may also be more motivated to accept a lower price.
Gather Financial Documentation
Most lenders require a lot financial documentation in the form of tax returns, brokerage statements and investment account information before approving a loan. It can take time to track all the needed paperwork down, so gathering it in advance may speed things up. Banks sometimes insist on additional documentation beyond the basic requirements which can slow things down. Getting it all done in advance will save you some frustration.
Getting prequalified for a mortgage will let you know exactly how much a bank is willing to lend you to purchase a house. It also lets sellers and the realtors know you are serious and can afford to buy. In real estate markets that are very competitive, being prequalified enables you to move more quickly with the purchase, and may mean the difference between getting the house you want or losing it to another buyer.
Consider Using a Mortgage Broker
Some homebuyers may want to work directly with a bank or complete the process online. Another option is to hire a mortgage broker who can help walk you through the process. Mortgage brokers also typically work with more than one lender so you have a variety of options, which may help you to get a lower rate. Working directly with a bank commits you to their terms and they may not be the most financially attractive. Mortgage brokers aren’t usually compensated for their work unless the loan closes so there is not an upfront cost for using their services.
Buying a house can be very exciting. Once you find a great property and secure a loan, Salt Lake City Movers will take care of the rest.