Shopping for a mortgage might not be as much fun as shopping for a shiny new car, a bigger TV, or that pair of shoes you’ve been eyeing. Still, putting some time and effort into your hunt for a home loan will make the process much less painful. Here are five secrets to choosing the right loan for your Utah home.
- Decide how much you can afford:
Your home is one of the most important—and probably the biggest—purchase of your life. That’s why the first step in your loan process should be calculating what kind of home you can afford. Consider how your credit score might affect your loan. Make a budget for living expenses and savings. And don’t forget to set aside money for your down payment and closing costs!
- Consider the length of the loan:
A mortgage loan is often a long-term commitment. Most homebuyers opt for a 30-year fixed-rate mortgage because it can make monthly payments more affordable. However, shorter loan lengths are usually available if your budget allows for a bigger payment. The main benefits to a shorter loan length are a significant reduction in total interest expense and a better mortgage rate.
It’s important to consider your options for the length of the loan and decide what works best for your financial situation.
- Learn about the different types of mortgages:
Many people don’t realize that there are many different types of mortgages. For instance, there are special programs and loans available to first-time buyers, veterans, and their families, borrowers in rural areas, senior citizens, and those building their own homes. And this is just to name a few!
Because of all the options out there, it’s important to do some research and talk with a mortgage professional to find out what types of loans you may be eligible for and which mortgage will ultimately be best for you.
- Understand mortgage interest rates:
The interest rate that you will pay in order to borrow the money for your Utah home is another important consideration when looking for the right mortgage. These mortgage rates change all the time. That’s why it’s important to keep an eye on the current interest rates as you prepare to buy your home. Fluctuating interest rates also means that you’ll want to consider whether to stick with a fixed-rate mortgage, where the rate is guaranteed for the life of the loan, or an adjustable-rate mortgage, where the rate follows the market.
- Pick the best lender for the job:
We saved the most important step for last. Most mortgage companies will get you a similar rate, but do your research and find a mortgage lender best-suited to your needs. Look for a lender that has local expertise and can get you the best loan for your situation while also alleviating the stress of buying a home by answering all your questions, simplifying the process, and making sure that everything gets done as quickly as you need it to.
With so many things to consider when choosing a loan for your home, it helps to have an experienced team to walk you through things. Contact us to speak with one of our mortgage professionals and get started on finding the perfect loan for your Utah home!