Buying a home is exciting but also stressful. It requires research, patience, and time to find that perfect home you’ve been dreaming of. What most people do not understand are the many options they can choose from when it comes to their mortgage loan. Did you know there are just as many options for a mortgage loan as the houses you will be looking at? Here are 5 mortgage shopping tips you should consider before settling on your mortgage payment:
1. Talk to a mortgage professional
A mortgage professional can help you find the right price for the right home. Here at Utah Community Credit Union, our mortgage loan officers will determine your price range and see if your credit score is ready for a mortgage and if not, we can help you improve your score and get you in the house that is right for you. Sure, online payment calculators are convenient, but do they tell the whole story? Often times they leave out property taxes, homeowner’s insurance, HOA fees and other missing expenses. At UCCU we have home buying experts at all 18 of our branches around Utah, Wasatch, and Juab counties ready to assist and answer all of your home buying questions. So please come and visit us–it’s a quick and painless process!
2. Find which type of loan is best for you
There are dozens of different mortgage loan options to choose from. That’s why our mortgage professionals are available to help you find the right loan for you. The three most common types of mortgage loans are:
- Fixed Rate- Conventional
A fixed rate is exactly what it sounds like – a set interest rate that will not change over the life of the loan, which is usually 15, 20, or – most commonly – 30 years.
- Adjustable-Rate (ARM) or Variable Rate:
Usually offers a lower initial interest rate that will fluctuate over the life of the loan, rising as interest rates rise. Hybrid adjustable-rate programs include fixed rate features (i.e. 3/1, 5/1, etc).
- Federal Housing
Insured by the federal government, FHA loans often qualify buyers more flexibly than traditional fixed loans and only require a 3.5% down payment. Mortgage Insurance is required for all FHA loans.
3. Looking for the right home
Many questions arise when looking for the right home. Do I need a real estate agent? What kind of home am I looking for? Single family home? Condominium? Townhouse? Having the right information is essential when purchasing your new home. That’s why at UCCU we can answer all of your questions and get you the help you need.
4. Avoid timing the market
You have finally found the right home, at the right price, in the right location. Don’t hesitate, go for it! Many people often feel they need to chase a mortgage rate that is just a little better. Mortgage rates are unpredictable, so if it’s the right place at the right time, why wait?
5. Closing your loan
So you have finally found the right home at the right price with the right loan. Great! The last step is closing your loan. Gathering all of your loan documents for final approval can be overwhelming, but don’t worry, our home buying experts will be there every step of the way. Our experts will guide you through everything from ordering a home appraisal, to locking your interest rate, and getting final approval for your underwriter.
Now you are ready to buy a home, congratulations! It may seem like a complicated process, but at Utah Community Credit Union we can help you relax.
Visit our website UCCUrelax.com for videos, mortgage information, and steps to follow for the ideal home buying experience.