As a Utah resident it should not shock anyone that I have need of a Utah mortgage broker. Much like being born, eating, and dying, sooner or later we all will need a mortgage broker to help us get a house of our own. Getting a mortgage is an intimidating process that will effect your financial future for decades to come. Most of us want to put it off, but the desire to own a house of your on is strong enough to move us to act and to conquer our fear and call a mortgage broker. If you are like me who have no idea what a mortgage broker really does or how they are paid. I didn’t even now what kind of mortgage I should get. Luckily my Utah Mortgage Broker was very patient and helpful.
Prices of Utah homes are drastically increasing and the interest rate is steadily climbing. It has never been more important to get the help of a qualified Utah mortgage broker. Your broker will explain the different types of mortgages available and help you find the one that best fits your financial situation and goals. A mortgage broker will also make sure that you are financially stable and will be able to afford the monthly payments. Let’s go over some the the very basic must knows of mortgages.
Common questions asked about mortgages are: Do I have the funds for a down payment? Do I earn enough to cover mortgage payments and living expenses? Do I have good credit? All of these are vital questions that must be honestly answered before we apply for a mortgage. A mortgage is defined as a long-term loan on a specific piece of property. Typical payments are made over periods of 15, 20, or 30 years. Banks, savings and loan associates, credit unions, and mortgage companies are the most common form of home financing.
Applying for a mortgage involves three main steps:
1. After completing the actual mortgage application, a meeting between the lender and the borrower is scheduled. The borrower presents evidence of employment, income, ownership of assets, and amounts of existing debts. At this point, most lenders charge an application fee between $100 or $300.
2. The lender obtains a credit report and verifies other aspects of the borrower's application and financial status.
3. The mortgage is either approved or denied. The decision is based on the potential borrower's credit and financial history and an evaluation of the home, including its location, condition and value. Home buyers who are denied a mortgage may seek recourse under the Equal Credit Opportunity Act of the Fair Credit Reporting Act.
*Important Note The approval application usually locks in an interest rate for 30-60 days.
To qualify for a mortgage, you must meet the criteria similar to those for other loans. The home you buy will serve as security (collateral for the mortgage. The major factors that affect the affordable of your mortgage are; your income, other debts, the current rates. Here is a basic 5-Step Mortgage Qualifying Tool:
1. Indicate your monthly income.
2. Multiply your gross income by .28 (or .36 if you have other debt).
3. Subtract the monthly debt payments and estimate monthly cost for property taxes and home owners insurance. You arrive at your affordable monthly mortgage payment(ammp).
4. Divide the ammp buy your mortgage term and rate. Multiply that by $1,000. This is the affordable mortgage amount(ama).
5. To obtain the affordable home purchasing price, divide ama by the amount being financed.
Now that you have a better idea about how the mortgage process works contact your Utah mortgage broker and let him guide you through this complicated transaction. Good Luck!
Mark Keller is an internet marketer for 10xmarketing.com. For more information about Utah mortgage brokers go to utahrealestatelocator.com
