What do first-time homebuyers need to do? What’s the best way to go about buying a house in Utah? If you’re asking those types of questions, speaking with a mortgage professional is a smart move – do that, and you’ll get expert answers tailored to your personal situation.
However, if you’re looking for tips that first-time Utah homebuyers should keep in mind, this article should be of help. Follow the suggestions below, and your experience will be an easier one.
Look at Every Home Loan Option
If you haven’t been able to save up a sizeable down payment – a common hurdle for first-time homebuyers in Utah — a USDA mortgage or VA loan could put you on the path to homeownership. If you don’t meet the requirements, a lending expert can point you toward zero-down and low-down mortgage programs. Explore all of the options, and there’s a good chance you’ll find a home loan that meets your needs.
Don’t Forget Closing Costs
You might qualify for a zero-down mortgage or a home loan with a low down payment, but whether or not that’s the case, you’ll need to save up for closing costs – and that can amount to as much as six percent of a property’s purchase price. First-time homebuyers are often surprised to hear this, but now you know to factor in this figure as you make plans to buy a home in Utah.
Get a Mortgage Pre-Approval
If you get pre-qualified for a home loan, you’ll have a general idea of how much a mortgage lender may allow you to finance. Take the next step and get pre-approved, and you’ll know the exact amount – which means you can restrict your search for the perfect starter home to properties you can actually afford to purchase. The mortgage pre-approval process takes more time, but it’s time well spent.
Be Smart in Regards to Homeowners Insurance
Homeowners insurance isn’t optional — mortgage lenders make it a requirement. Searching for the least expensive policy seems like a sensible approach, but going that route isn’t recommended. Cheap insurance generally covers less, and as a first-time homebuyer, getting ample protection should be the goal. Plus, going cheap means incurring greater out-of-pocket costs for claims, and that’s definitely not what you want.
If you’re a first-time Utah homebuyer, turn to the mortgage professionals at Intercap Lending for expert advice and assistance. A trusted Utah home loan provider for decades, our mortgage team would be happy to guide you down the road to homeownership.
For more information on Intercap Lending and our mortgage programs, or for more first-time homebuyer tips, contact our office in Orem, Utah, today.