Buying a new home in Utah can be one of the most exciting chapters and life experiences!
To make your dream of owning a home in Utah come true, start by applying for a Utah home mortgage. For some first time buyers, they may lack the proper guidance on how to qualify for home loans in Utah quickly.
In this post, we will reveal our top secrets when looking for a home mortgage in Utah!
1. Know Your Credit Score
If your credit score is on the lower side of the scale, you may not qualify for conventional Utah home loans (but it doesn’t mean it’s impossible!) If you have a low credit score, here are some strategies to help you improve your score:
- Make sure all bills are paid on time
- Keep tabs on your credit utilization rate
- Leave old debts on your report
- Take advantage of score-boosting programs
- Careful timing with application
- Be patient
- Monitor your credit
The tactics highlighted here will help raise your credit score over time so you can qualify for a home mortgage in Utah.
2. Never Change Your Employment Status
Mortgage companies in Utah prefer borrowers who have a stable source of income. To prove that, you’ll need a stable income source and employment status.
Therefore, if you are considering quitting your current employment, at least wait until your mortgage has been approved.
A slight alteration on employment status can result in reversing the whole mortgage application. Therefore, make sure you have timed the application perfectly at a time when there is no planned shakeup at your place of employment.
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3. Pay off Your Debts and Increase Alternative Sources of Income
The mortgage lenders in Utah will assess your debt to income ratio when you apply for a mortgage.
If your debts seem to take up all your income, the chances of qualifying for a mortgage are slightly lower (but don’t get discouraged because we can help you!), and it may be a lesser amount than what you might anticipate. Therefore, to improve the debt to income ratio, consider the following tips:
- Increase the amount paid toward the debt to lower the debts significantly
- Avoid taking more debt, and postpone any loans
- Avoid large purchases to ensure you are using less credit
- Recalculate the debt to income ratio monthly to ensure you are in the right track
By doing so, you will be able to lower the debt to income ratio. Alternatively, you can choose to raise the income by finding alternative sources of income.
If the income cannot be declared, use this income to pay off the outstanding debts so that you lower the overall amount.
4. Save! Save! Save!
Growing your savings account helps you to qualify for a home loan. This is because you can use the saved amount to clear the closing costs or even the down payment. To improve your savings, consider the following tips:
- Saving should be a habit
- Ensure you only spend what you have budgeted
- Automate your savings
- Find ways to earn extra income
Therefore, you will find it easy growing your savings account, which attracts the eyes of the lender, when you are applying for St George home loans.
5. Only Borrow What You Can Afford to Repay
No lender will give you a loan that you cannot afford to repay. Therefore, before filling the amounts section, calculate how much you can comfortably afford when it’s time to repay. Remember that you will be paying home maintenance fee and home insurance, among other expenses. Therefore, factor them too when calculating the amounts that you can afford as repayments.
Now you know the top secrets that you need when applying for a home mortgage in Utah. Remember that your credit score, debt to income ratio and stable income are the major factors the mortgage companies in Utah will look at when you apply for a mortgage.