Seven Mistakes Most People Make When Finding a Mortgage Lender in St. George

Are you planning to purchasing a property in St George Utah?

Do you want to find the best ST George Mortgage Lenders? 

Purchasing a house is one of those most expensive investments in life. Therefore, taking a mortgage can be a quick way out as you are left making repayments.

It is important to know that mortgage is a huge debt that you will ever carry. In that regard, it is important you make the right decisions!

In this post, we feature seven mistakes that most people make when finding a mortgage lender in St. George. Before you have closed the mortgage and signs the forms, here are mistakes you should avoid. 

1. You fail to check the credit score before beginning the process of mortgage shopping

It is unbelievable that many prospective homebuyers fail to check their credit score before starting the mortgage application process. In the end, they are surprised when the mortgage lenders tell them that they cannot qualify for the amount they intend to borrow. 

Before you start shopping for the best St. George mortgage lenders, visit the credit bureaus and inquire your credit score. 

If your credit score is high and attractive to lenders, they can even consider lower mortgage charges and lower interest rates.

2. The debt to income ratio matters too!

For home mortgage pre approval, the home mortgage lenders will look at your debt to income ratio.  This informs them of your ability to afford the home mortgage repayments. 

Therefore, you want to make sure that the ratio is attractive to the lender. With attractive debt to income ratio, the mortgage borrowers will offer attractive terms. 

The debt to income ratio matters when applying for a home mortgage low down payment. 

Tip:Avoid taking additional debts and focus on settling the existing debts.

3. Not shopping around

St. George mortgage lenders are competing to attract as many borrowers as possible. 

While chasing their goal,  they provide different mortgage terms to the borrowers. To land yourself the most affordable mortgage, shop around to find out what the mortgage lenders are offering. 

Note that, if you go inquiring the mortgage rates from different lenders this is not going to affect the chances of being approved for a mortgage. 

If you have a good credit score and the debt to income ratio is attractive, you are assured that the mortgage lenders will somehow compete to have you. 

Do not trust your loan officer, without following up their advice with some research. Do some homework by yourself! You will be surprised to find out that the loan officer did not share as much information.

4. You do not consider the overall cost of credit

Unfortunately, a good number of first time borrowers think that the interest rate is the only factor when shopping for a mortgage. 

They fail to understand the other underlying mortgage costs. 

The interest rate alone, should not inform you the best St George mortgage lender. 

Therefore, consider the additional cost of credit so that you will be in a position to choose the cheapest home mortgage. You may find that a conventional loan costs more than Utah FHA refinance. 

5. Not considering the low down payment home mortgage

FHA mortgage 3.5 down payment allows you to own a property easily compared to 20% conventional loan. 

While comparing the different mortgage lenders and what they are offering, inquire whether you qualify for the FHA mortgage, as it is a low down payment mortgage.

6. Allowing mortgage lenders to drive you into house poor state

Some home mortgage lenders will pre approve you for more amounts than what you actually need to purchase the property. 

If this is the case, you end up spending all the monthly earnings on mortgage repayments. A good number of borrowers have ended up not able to pay for housing related costs since very little money is left after they have borrowed to purchase a property. 

Only confine yourself to what you need. Avoid being attracted to mortgage loans that you do not really need. 

This is a tacky way as it turns home buying into a regrettable mistake rather than lifetime jubilation. 

Remember that home mortgage low down payment option leaves the borrower with some cash at hand in order to finance the house keep up after closing a home purchase.

7. Not understanding different interest rates terms

Mortgage lenders will ask you to choose between variable and fixed interest rates. The variable interest rates start with lower interest rates compared to the fixed interest rates. 

However, as the name suggests, the variable interest rates will increase overtime depending on market forces. 

The fixed interest rates will remain the same no matter the prevailing market conditions. If you are planning to live in the home for more than five years, get the fixed rate mortgage.

At Staples Group, we provide different home mortgage products. Check out the portfolio of mortgage products available and contact us for the best rates.

THE IDEA THAT PEOPLE CAN’T BUY A HOME WITH A LOW DOWN PAYMENT IS AN ABSOLUTE LIE!

According to recent statistics, the average price of a house in the U.S as at the end of 2018 was $318,600. As crazy as it may sound, this projection may have skyrocketed by about 20% in 2019, making home buying a huge deal as if it isn’t already.

I don’t say this to discourage your hopes to buy a home in the slightest. I hope to restore some hope. Sure, homes these days are pretty expensive, but there are so many options to still help families get into homes without killing their financial wellbeing.

This is where getting a Mortgage can be a lifesaving option. Many Mortgage companies offer Low Down options, meaning instead of saving the industry standard of 20% to put down, they have as low as 3% down & even ZERO % down options.

What is a Down Payment?

A down payment refers to the cash you pay before getting into a home. Down payments can crush the hopes of any hopeful homebuyers because most of them tend to be highly-priced. Like I mentioned above, it’s typical to save 20%. 

What if I Cannot Raise the 20% Down?

Even though we have mortgage bankers that are willing to negotiate with you for the best price, most people are still skeptical. The idea that low-down loans will be costly over the long haul is so deeply rooted in our minds and a lot of people probably think the higher the down payment the better. This isn’t necessarily true today but might have been the standard 20 years ago. The real estate industry is very flexible, ever-changing and accommodative. Not every homebuyer can live up to 20% down rule, mortgage bankers are aware of that & are creating more room to accommodate them.

Why take up a low downpayment mortgage?

Most homebuyers tend to shun away from low down payment loans because of additional costs, like mortgage insurance. This shouldn’t stop you from getting your dream house though, because low down payments can still be a good option if you know how to finesse the best situation out of one. 

Some advantages of a low down include:

  • Mortgage lenders that offer low down loans also tend to have minimum credit score requirements, making them ideal for most first-time homebuyers.
  • Making a smaller down payment will help reduce the chances of hurting your financial wellbeing. What if the 20% down payment is all you have in terms of savings? What happens if your child gets sick, or if the heater fails? Big down payments often leave buyers financially drained for months and for this reason, most people are considering low-down loans to avoid that stress & belt-tightening.
  • A low-down loan will help you get into a house sooner than later since you don’t have to save up for as long if you were trying to put 20% down. The problem with waiting to save the 20 % is that it could take years & longer you wait, there’s no guarantee what the housing market will look like & it could be more expensive to go this route in the long run.  

The nature of your local real estate market can sometimes be favorable for making a low-down-payment on a house. With mortgage creditors such as Staples Mortgages, you can get a great rate and still get a low down loan for your mortgage. 

We have a plethora of options when it comes to landing mortgage loans with low down payments. One option is the Federal Housing Authority loan (FHA).

Being a state-sponsored program (Not backed by the Government), they can offer lower interest rates at only 3.5% although this means that you will have to pay for mortgage insurance. The sole purpose of this insurance is to protect the mortgage lender if a foreclosure occurs, which makes sense. They are taking more of a risk to Lend to you, so homebuyers shouldn’t detest it. Though, pro tip. If you get a low-down loan, wait 6 months to a year & then refinance to get rid of the Mortgage Insurance. Having to pay Mortgage Insurance isn’t a permanent problem, so I wouldn’t worry about it too much.

Conventional mortgages also offer low down options. They are also not backed by the government. You do need to have a better credit score for a Conventional though. Definitely look into a Conventional too for a Low-down option. 

Check out Staples Group Mortgage if you are looking for other Low Down loans, & other loan types too! You’ll find lots of resourceful knowledge & Info to aid you through the process for home buying. Good look house hunting!

  • Mortgage lenders that offer low down payments also tend to have minimum credit requirements, making them suitable for first-time homebuyers.
  • Making a smaller down payment will help reduce the chances of becoming house poor. What if the 20% down payment is all you have in terms of savings? What happens if your child falls ill, or if the heaters fail? Big down payments often leave buyers financially drained and for this reason, most people are shifting their focus to the variations that low down payments provide. 
  • Mortgage loans with low down payments will enable you to take a shorter time to make your dent into the real estate market. Saving for a down payment can take years, and keep in mind that the prices of homes are always rising so the longer you wait, the costlier it will turn out.

The nature of your local real estate market can sometimes be favorable for making smaller down payments. With mortgage creditors such as Staples Mortgages, you can acquire home mortgages at affordable interest rates and still get to pay low down payments for your mortgages.  We have mortgage loans that warrant down payments of as low as 5% to 6% and homebuyers are giving them a green light.

We have a plethora of options when it comes to landing mortgage loans with low down payments. One prolific option is the Federal Housing Authority loan (FHA). Being a state-sponsored program, they lower interest rates to about 0.8% annually and this is divided into 12 monthly installments. The down payment stands at only 3.5% although this means that you will have to pay for mortgage insurance.  The sole purpose of this insurance is to protect the mortgage creditor if a foreclosure occurs, hence homebuyers shouldn’t really detest it.

Conventional home mortgages also have an inclination towards offering low down payments. These are mortgage loans, which are not backed or guaranteed by the government but are catered for by private insurers. These types of mortgages are a common thread among borrowers. Besides the reasonable down payment options, these lenders also avail of flexible interest rates, although this typically depends on one’s credit score. 

Generally, the real estate realm has witnesses flaring prices of houses, and this often discourages most people from making the leap. However, there exist mortgage creditors that acknowledge the tough economic times, hence, they are willing to offer homebuyers affordable down payments.  You can check out Sun American Mortgage if you are looking for a home mortgage for building a home. 

Five Proven Techniques to Get the Best Home Mortgage in St. George Quickly

If you are planning to purchase a new home in St George, chances are that you are looking for the best ST George Mortgage. While there are different St George home loan lenders, it is not obvious that they all provide best home mortgage in St George.

If you are looking for the best St. George mortgage, you are in the right place. In this article, I am going to take you through some of the proven techniques to get the best home mortgage in St George Quickly. Keep reading to find out the tricks.

1. Work on getting the credit score in shape

In the first place, what really matters when applying for different St George mortgages is the credit score. 

Before you can even start evaluating the lenders when you need a mortgage for building a home, evaluating your credit score is critical. 

Consider that lenders of conventional St George mortgage will check your credit score before issuing the pre approval note. 

Therefore, if you do not meet the minimum credit score to assure the mortgage lenders you can repay the loan, they will not consider your home mortgage application. 

You can get the credit score report from the major credit bureaus in St George. 

2. Understand what various mortgage lenders are offering

To get the best St. George mortgage for building a home, you need to understand the lending landscape. 

So, what are the various mortgage lenders offering you? 

This information is meant to help you as the lender, in  navigating the already overcrowded lending field. 

To find out this information, begin with an online search. 

In your search, you will be evaluating what the registered mortgage lenders in St George, offer

The different home mortgage programs available in St George include:

The home mortgage programs feature different requirements that you have to meet in order to be preapproved.

3. Get your home mortgage pre approval

This is another important stage when applying for a home mortgage!

The mortgage pre approval letter is important before you start looking at the different houses available for sale. 

In fact, with a mortgage pre approval letter, you gain a competitive edge when bidding for the property of your dreams. The home sellers acknowledge that buyers who already have a preapproval are serious buyers. This is because it is already evident that a home mortgage lender has already looked at your finances and felt that you can afford repaying the home loan. Therefore, getting preapproved is a huge step and one that helps in saving time. 

For preapproval application, the mortgage lender requires particular financial information. This includes:

  • Your social security number
  • The bank account statements
  • Outstanding debt obligations if any
  • Your current payslip if employed
  • Tax return slips if in business
  • Employers letter to prove you are indeed in their payroll

You can seek pre approval from more than one home mortgage lender. This also lets you compare the different loan estimates from each one of the lenders. 

4. Compare the lending rates offered by different mortgage lenders

The mortgage lenders will compete to attract borrowers. Therefore, not all of them charge the same interest rates! 

Note that some will have a high interest rate, but overall the home mortgage is cheaper, compared to what others are charging. 

Therefore, it is good that you shop around inquiring for the best rates they can afford you as the borrower. 

Find out the total cost of the loan and the lender fee that you need to pay at the time of closing. Do not forget to go through the lenders terms and conditions regarding the repayments. The objective is to go for a loan with attractive interest rates. 

5. Ask around to find out others’ experiences dealing with different lenders

You will be surprised with the amount of resourceful information you get from friends and relatives. 

Unfortunately, new homebuyers want to treat home loan shopping as a private affair. Therefore, they keep the loan application to themselves. 

Find three to five trusted colleagues of friends and inquire about their experiences. This is particularly if they ever applied for a mortgage for building a home. Take note of how they were treated while applying for a home mortgage, and throughout the repayment period. This gives you an idea of what to expect. 

The tricks covered here will help you get the best home mortgage in St George Quickly. This is whether you are applying for the mortgage loans with low down payment or the conventional loan. 

With your credit score in a good rating and a clear understanding of what different lenders offer, you can qualify for a mortgage loan. At Sun American Mortgage Company, we provide different home mortgage programs. Therefore, if you need a mortgage for building a home, give us a call today to find out how much you qualify to apply.