Flying Low: Taking Advantage of Low Mortgage Rates

As of late, the American real estate market is enjoying near historically low mortgage rates thanks to the actions taken by the Federal Reserve to stimulate this result. Those who have yet to purchase a property might be wondering what exactly low mortgages mean to them. In a nutshell, low mortgage rates confer a number of benefits to buyers and existing property owners, and such boons can potentially translate into big savings.

Flexible mortgage loans will be the most affected by the reduction, since these loans usually follow the Federal Reserve’s dictated rates. Homeowners with these types of loans can expect to pay less for their monthly installments. Householders can also take advantage of the low rates and take out a home equity loan. This allows borrowers to capitalize on more lenient rates and make the most out of a large equity value.

With low mortgage rates dominating the market, it might be wise for some homeowners to consider refinancing their old loans. However, some careful thought and planning needs to be done before refinancing a mortgage. Householders should consult with either their lender or with an industry expert to determine whether or not refinancing can truly save cash in the long run.

The Crucial To-do List for First-time Home Buyers

Buying your first home seems like a daunting undertaking, but these guidelines can help you overcome the hurdles of what could be the biggest financial decision you will make in your life:

• A good credit score can give you better loan terms, and will help secure lower down and monthly payments. Lenders see favorable credit scores as an indication that the borrower is financially reliable and will be able to live up to his or her loan obligations.
• Take a good look at your financial situation and assess how much you are willing to pay for a new home. Experts say that the ideal home payment should be no more than 28% to 30% of your gross monthly income. It pays to remember that stretching your budget can lead to financial woes down the road, which can cost you your dream home.
• Before you even start shopping for a new home, start the process of getting the right financing by getting pre-approval for a mortgage. This will help you in finding a home that you know will get the right financing from lenders.
  Be prepared for down payment and closing costs. The down payment can be anywhere from 3.5% to 20% of the purchase cost, depending on your loan. Closing costs depend on your home’s location and are typically 2%-4% of the purchase price. Utah ranks 39^th among all states in closing costs, with US$2,316 on average.

• Make sure to buy a home you will be truly happy with.

Tips to Improve Your Chances of Getting a Mortgage

At some point, you’ll want to buy a house you can call your own. Once you decide to purchase property, you’ll be faced with applying for a mortgage loan. If you want to find out how you can get pre-approved for a mortgage loan with monthly payment and terms that you agree with, you’ll have to start looking at your finances as early as now. There are different ways to improve your chances at getting pre-approved by a lender; here are some useful tips.

Remortgage before you change your job. In many cases, a person’s duration of employment is very crucial and can determine whether he is eligible to get a mortgage or not. If you’ve been employed by the same company for 12 months or 12 years will factor in your loan approval.

Repay other debts. It is very important that you make it a habit to repay all of your credit cards, store cards and overdrafts, not only to save you money, but also to increase your chances of getting a mortgage. Most of the time, lenders take into account the outstanding debt that their clients have, and will assess whether you can get a mortgage.

Don't open any new cards. This one is an old advice, but became even more important now because of the high expectations that mortgage lenders have. Getting a credit card before or during the mortgage application process can affect your credit score.

Tips for First-time Homebuyers

Many first-time homebuyers are usually apprehensive about choosing a house and closing the deal. It comes as no surprise, however, as this kind of event requires a lot of discernment, planning, and of course, money. So before buying a house, understand what your long-term goals are and consider factors such as the best type of home for you and your family, as well as what features you’d want your house to have.

You should know that each type of home – be it a condo, a detached single family home or a four-unit building – has its advantages and disadvantages depending on your goals as a homeowner. If you're planning to save on purchase price, you may want to choose a fixer-upper. If you're after the amenities, you may want a home that includes complete bathroom and kitchen fixtures.

If you're concerned with mortgage, you have to know at least how much you'll be paying monthly including the interest rate once you take out a loan. Mortgage companies usually offer competitive rates to make your home purchasing project go smoothly.

Lastly, know how much you can afford. You shouldn't simply direct your focus on monthly payments; you have to see the entire picture or consider the entire amount you'll be dealing with. Ask yourself if you are capable of funding this home in the long run because you don't want to purchase something that will end up in the foreclosure bin.

Finding Affordable Mortgage Rates

Buying a home you like and can afford is not an easy task or something you can do in a day. Whether you’re buying property in Utah or somewhere else, the process requires a lot of preparation, starting with having the financial resources for it—and this may be the most crucial part.

Indeed, before you can even think of buying a home, you must know first which lenders may grant you the necessary home loan or mortgage at fair rates. The process doesn’t stop there, however, as it goes further towards asking yourself if you can afford the monthly payments proffered by the lenders, which really means determining which of them will give you the lowest mortgage rates possible.

Mortgage rate refers to the interest charged on the mortgage and this depends on a lot of factors, including your credit standing. Mortgage rates can also be either fixed (remain the same for the period of the mortgage) or adjustable (vary with a benchmark interest rate). The amount of the loan, the down payment, and the length of the term also determine the mortgage rates.

The good news is that if you're a potential homebuyer, you can compute for the range of possible mortgage rates through online mortgage calculators. In this manner, you can cut through the some of the selection process while avoiding surprises that could delay your home-buying efforts even further.

Calculating Monthly Mortgage Payments

Buying your first home in Utah or anywhere around the country would require getting your finances in order first—and yes, you may need to take out the good ol' calculator from your drawer for this.

The first step is to figure out how much you can afford to pay for mortgage. To calculate this, you need to consider your gross household income, i.e., your own plus that of your partner or spouse (if any), along with any other income you may have, either from a part-time job or a small business on the side, and consider this as Figure A. Afterward, compute for your household expenses by adding together how much you spend for groceries and gas and your monthly bills--utility, credit cards, mobile phones, car loans, student loans, and others; consider this as Figure B.

Typically, the result of subtracting Figure B from Figure A will give you an idea of how much you can still spare to pay for your mortgage. However, keep in mind that you also need to allot funds for health emergencies, household repairs, and baby things, so you need to factor all of these as well. Once you have worked them all into the equation, you'll have a good idea of a manageable monthly mortgage payment for yourself.

Salt Lake City is Named After the Great Salt Lake

Living in Salt Lake City, Utah's state capital and largest city is like living in a dream. Not only do the Wasatch Mountains provide a beautiful backdrop to the eastern side of the city, it also provides a wonderful venue for outdoor activities that many big cities located in other parts of the United States lack.

With a metropolitan area population of just above 1 million, settling in Salt Lake City feels just like how living in a big city should feel—the conveniences of urban living, the nearness of places where you have to be, the vibrant life—with crowds not as large as in in major cities like Chicago and Los Angeles.

Of course, Salt Lake City is named after the Great Salt Lake and it is a must for everyone who's coming over to the city to visit the Great Salt Lake Park and Marina, a state-run park where boating can be experienced all year round. Despite the cold winters Salt Lake City experiences, water in the Great Salt Lake Marina never freezes.

Since very few power boats set sail in the lake, hanging out along its banks is a sight to behold. To catch site of the city's large pelican colony, check out Antelope Island within Great Salt Lake.

Three Tips for First-time Home Buyers

Now that you've saved enough money for a house to call your own, you must be itching to spend them all and occupy a charming home in a posh neighborhood. However, you must exercise restraint; after all, buying a home for the first time should be given due thought. If you don't want to have any regrets after purchasing a property, read on for some tips for first-time home buyers:

Research

Don't just settle for one or two options when looking for a prospective home. Scour the Internet or approach real estate agents and get as much information about properties up for grabs. Who knows, you might see a domicile with the same features as your original choice yet more reasonably priced.

Allocate

Don't fork over all your cash for a new but empty house. Keep in mind that you'll have to set aside money for additional furniture, repairs (if any), and your everyday needs once you're done moving. Decide on just how much you're willing to spend for a new home sans the aforementioned concerns.

Look Ahead

Do you see yourself in the same house five or more years from now? If so, then find a property that you can easily alter as your lifestyle changes and the number of household members increases. If you're kind of nomadic, then you can also consider renting instead of buying a home.

Fixer Upper Homes—Some Purchase Considerations

Buying a fixer-upper can go two ways: it can be an utter nightmare punctuated by countless unforeseen disasters, or it can be one huge whale of a deal. The direction your purchase goes will depend on choosing the right fixer upper home to buy. For this, you'll need the help of a host of specialized home inspectors.

Fixer upper benefits

One of the best characteristics of a fixer upper is that the price is often independent of the conditions of the real estate market. Any time is a good time to buy these types of homes, especially if they go for way less than other homes around. The advantages are pretty standard: lower price, less competition, and a lucrative resale profit.

The ideal fixer upper to buy

The ideal fixer upper is one whose imperfections are easy to overlook. Most first-time homebuyers aren't able to see past the disarray, and this is something you should take advantage of. What one may think of as a major facelift may be a walk in the park for another, and knowing the distinction is what separates the smart homebuyer from the rest of the pack.

Inspections for fixer upper homes

You need to consider many types of inspections before buying a fixer upper, some of which include roof certification, engineering reports, pest inspections, sewer line inspections, and the like. Always get home inspection done by a qualified home inspector before you commit to the sale.

Rudimentary Information on Dealing with Mortgage

Not everybody has the resources to get themselves a home; however, the mere lack of money isn't a detriment that should stop individuals from aiming to inhabit their own. With home loans or mortgages, it's now possible to secure residential properties even if one's budget doesn't match the structure's price tag. All he has to do is apply for the loan and abide by the rules governing the process.

A mortgage is simply a long-term loan, designed to be gradually cleared through certain repayment conditions. Applicants are usually given the power to choose how long it will take for them to pay off their dues, a period that can last for as long as 30 years. In the unfortunate event that the applicant fails to adhere to the mortgage terms, lenders may opt to take his home away.

The amount of the home loan is determined by the original price of the structure plus the interest as dictated by the loan provider. At first, repayments largely consist of interest, which will eventually drop once the principal or the amount borrowed has been significantly reduced. Aside from the loan interest, lenders also need applicants to pay for the loan establishment fee and other charges that may arise in the course of the application.

There's no need for despair if you find yourself short of what you need for that charming abode. There's always home loans to make your dream a reality. Just make sure you understand how mortgage works.

Skip the Rent, Buy a House

You know you've made it in life, when you can purchase a house and be confident that you can make payments every month. This is, after all, ultimately better than paying rent because when you simply rent, an angry landlord can make you homeless in a snap of a finger. This is why you should greatly consider buying your own home, even if you have to take a loan for it.

The country's economy is one built on credit, where people drive cars and live in homes that they don't technically own yet. There is nothing wrong with this, and as long as you work hard, you will eventually be able to pay off a loan and legitimately be a property owner. It takes time, but when you play your cards right, you can look forward to your own happy ending.

When you have your own house, you can say goodbye to irresponsible and horrible landlords and ladies. When you have your own house, you can sleep at night without worrying that a neighbor's dog will pee in your hallway. When you have your own home, you can rest easy knowing that you have a good environment you can raise your children in.

Being a homeowner is a good life; it's getting there that's the tough part. Still, if you choose the right lender who understands the woes of the common man, you'll definitely get there sooner or later.

Paperless Mortgage: The Future of Utah Home Loans?

Freddie Mac says that a person applying for mortgage signs at least nine documents, which automatically amounts to a heap of pages. Mortgage has been like this ever since it was conceived, but that's about to change soon. Since its introduction more than a year ago, paperless mortgage has become a blessing to would-be applicants. Every document necessary is stored in a thumb drive for the mortgage holder to take home and review.

Although paperless mortgage is still a minor trend (where less than a tenth of lenders have it), many in Utah have since benefited from it. The digital signature in every document, which can be done once instead of multiple times, verifies their authenticity and legality. Meetings with mortgage lenders are cut short due to the quick and easy process. However, paperless mortgage faces the challenge of security, now that the documents aren't totally “in writing.”

Furthermore, experts claim that notarization is what's keeping paperless mortgage technology from truly taking off. Under federal law, mortgage documents must be signed in the presence of a notarized witness. As the short meeting is usually done by phone or online, some raise concerns on how safe the system is for future use. Many people aren't complaining about having too many papers to sign; but signing page after page may leave their hands numb.

How Mortgage Brokers Help First-time Home-buyers

With the Utah housing market on an upward trend, now is a good time to start hunting for mortgages with good rates. Several banks offer competitive rates on mortgages, as do several mortgage institutions that let you apply directly. However, if this is your first time to apply, it is best to consider getting help from mortgage brokers.

Mortgage brokers know much about the mortgage industry, and they can guide you to the financial institutions that are offering special rates, discounts, and deals that are not offered on the open market. They know exactly which mortgage product will work best for you in spite of your financial situation. If you have a low credit rating and apply for a loan directly from a bank, it will be challenging to get approved for a mortgage. Fortunately, mortgage brokers can help you find ways.

Applying for a mortgage also involves a lot of paperwork, something you may not be prepared to handle as a first-time home-buyer. Thankfully, mortgage brokers can step in and handle all the paperwork for you, including the negotiations with the lenders. If you decide to employ the services of a mortgage broker, make sure that you both agree on the amount you have to pay as broker's fee. 

Buying Your Dream House Sans Nightmares

Owning a house is still an American dream despite the state of the national economy. A house symbolizes the stability and security that many people aspire for throughout their lives. For them, nothing comes quite close to the feeling of fulfillment that they experience in having a house they can call their own.

However, like most everything else in this world, nothing comes free. You can't have your dream house if you don't have the financial capability—and that requires a lot of moolah. Fortunately, you can borrow the resources to make your dream come true. There are enough reputable companies that are willing to lend you the money to buy the house you've been hoping for.

Although you can borrow money to buy a house, you also have to pay for it. Hence, make sure that you can afford the monthly installment throughout the period of the loan. Otherwise, you might be enjoying your house for only a few months or years. If forced to give it up, you'd have wasted the investment you've initially made.

Buying your dream house can be very fulfilling, but it can also prove to be a disappointment later. Avoid making it into a nightmare by securing no more than a reasonable home mortgage.