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Pros and Cons of Renting vs. Buying – Is It Better To Rent Or To Buy?

Whether to rent or buy a home remains an overwhelming question for a majority of Americans. Everyone holds an opinion when it comes to renting vs. buying. Sadly, not even experts have managed to hold back their two cents on the question of home renting or home buying.

So, what are some of the pros and the cons of renting vs. buying? Is it better to rent or own a home?

In this post, we look at the advantages and disadvantages associated with home renting vs. buying. If you are on the fence about buying a home or renting, here are some ideas to backup your argument. Let’s start with home renting:

Home Renting

A recent report shows that more people are renting their homes right now than at any point 50 years ago. In 2016 close to 37% of households lived in rental properties. This can be attributed to the larger amounts of student debt, fears from the housing crash of 2008, and a myriad of other reasons.

So, what are the pros and cons of renting properties?

Advantages of Renting a Home

Renters Pay a Lower Property Maintenance

A homeowner or landlord is typically responsible for all property maintenance and repairs. When you rent a property, you can contact your landlord when something is broken or if the home needs unexpected repairs. It’s usually the responsibility of the landlord to fix the leaky faucet and unblock the sewer line.

However, this is not always the case! When renting a house, go through your lease agreement to understand your responsibilities when it comes to property maintenance costs. If you cause damage to the rental, your deposit may be withheld for repairs after you move out.

Renters Enjoy Easy of Mobility

Renting a property means a shorter-term commitment. If you are known to wander from one city to another like in the case of changing job requirements, it could be better to rent instead of buying a property. By renting a property, it is easier to get up and relocate to a different city. If you aren’t planning to be in the home for a long time, renting might be your best choice!

Renting is Associated with Lower Upfront Costs

Buying can sometimes come with more upfront costs compared to renting. This includes your down payment and closing costs. For rental properties, you need to pay the initial month’s rent and a deposit as required by the property managers. This can be less than the upfront costs of getting a mortgage on a home.

Those are some of the advantages of renting a property. Now let us shift the attention to the disadvantages of home rentals:

Disadvantages of home rentals

Tenants not allowed remodeling or decorating the property

If you choose a home rental, know that you can’t make changes to the property. For instance, you cannot modify the features of the home without the express authority of your landlord. This gives you less freedom to make the home your own. You can’t change the paint color, update the finishes, or put holes in the walls without permission from your landlord.

Renting Means You Are Paying Someone Else’s Mortgage

When you are renting, all of your rent money goes toward paying someone else’s mortgage payment. You don’t get any return on your investment. At the end of your lease term, the only return may be getting your deposit back. If you were to buy a home, you would be paying your own mortgage and putting money into your home’s equity. You can eventually use this equity later on either during the sale of the property or if you were refinancing the home to pull cash out.

Home Buying

A report published by the Statista Research Department in 2016 showed that 68% of the respondents were homeowners. This shows that more Americans prefer home buying as opposed to home rentals.

Homeownership comes with various benefits. Let us look at some of the advantages of owning a property.

Buying a Property Comes With A Mortgage Interest Deduction

One of the best deals enjoyed by homebuyers is the deduction of 100% mortgage interest paid in that year. The money you spend on your mortgage interest is tax-deductible, possibly resulting in thousands of dollars in savings.

A Home is an Investment

When you purchase a property, it’s yours to make your own. Depending on the property type, you are free to rent it out or even sell at a profit. You can keep a home you have purchased for your lifetime.

Enjoy the Freedom to Modify or Decorate the Property

So long as you are the property owner, you have the freedom to make changes to the home. You can make additions, knock down walls, install upgrades, and whatever else suits your families needs.

Disadvantages of Home Buying

The Homeowner pays for Property Maintenance

Property maintenance can be expensive, but there is no way around it. If you want to ensure your property does not depreciate, you have to keep up with the property maintenance cost. Every few years you may have to invest in updating your home. Examples being: replacing your roof, installing a new water heater, updating your appliances, and upkeep on your landscaping.

Cope with Housing Market Uncertainty

Are you buying a property with an intention to resell in the future? There is a small risk that your property may lower in value due to economic shifts. The housing market is typically predictable, but there is always a possibility for it to fluctuate.

Renting vs. buying has been an ongoing debate for decades. If planning to rent or buy a home, refer to this article to make a better decision. If you are looking to purchase a home, we would be happy to answer any questions you may have.

How to Buy a House in Utah With a Bad Credit Score?

Barely anyone wants to keep writing rent checks each month. Buying a house is the secret to breaking out of that rent cycle. A common misconception a lot of people have is that they can’t afford to pay a mortgage, which is why they choose to rent. That’s actually not true at all, there are so many options out there! There are plenty of options for low-income earners or those with a less than an ideal credit score – Which is what we’ll go over in this post, so keep reading!

1. Check Out Home Buying Programs For Borrowers with Low Credit Scores:

Borrowers who want to buy a house in Utah but have a poor credit score experience tough times finding mortgage lenders who are ready to accept their applications.

Fortunately, we have home buying programs that favor borrowers with bad credit. Here are some of the options available to home buyers with a bad credit score who are interested in buying a house in Utah.

– The FHA Loan: An option that is perfect for first-time homebuyers. The FHA home buying program is available to applicants with a minimum credit score of 580 and only requires a down payment of 3.5%.

– The VA loan: is available to veterans or surviving spouses of a veteran only. Offers benefits such as low-down payments, lower interest rates, and flexibility when it comes to a lower credit score.

– The USDA Rural Housing Loan: Although a majority of lenders will require a 640 FICO score, some will go as low as 580, making this an option for borrowers with a low credit score. This loan applies to rural areas, not big cities. Check with a loan officer to see if the home you are looking to buy can qualify for a USDA loan.

If you have been denied a conventional mortgage due to poor credit score, check for mortgage lenders authorized to lend the FHA, VA or USDA home mortgage loan types. Those home buying programs simplify the experience for those looking to purchase a property but have a poor credit score.

2. PMI & Higher Interest Rates:

Some Mortgage lenders will have to offer borrowers with a low or bad credit score higher rates as a way of protecting themselves from defaulted payments. Or if you’re not already familiar with Private Mortgage Insurance, that’s something that might have to be added onto your monthly mortgage payment. Please note that you can refinance later on down the road to get that removed and it doesn’t have to be endured forever.

3. Raise a Large Down Payment:

A large down payment is another poor credit compensating factor. Talk to your mortgage lender to find if they can consider a larger down payment as compensation to your low credit score. Some mortgage lenders may consider this option but charge you a high-interest rate, as an extra protection measure. Two things may happen when you offer a higher down payment:

– It shows the mortgage lender you are willing to take on more risk on the home loan, thus they may take the risk to lend to you.
– The lender finds a reason to believe you will pay the mortgage in full since you have invested more of your own money from the beginning.

4. Clear up Credit Score Errors:

Check your credit report for any errors. You may have a lower credit score by mistake. Request for a full record showing what led to the low credit rating. Be willing to make those phone calls and see if you can negotiate to clear up your record. It’s worth it to do everything you can to help raise your credit score.

5. Boost Your Credit Score:

If neither of the above options works, boosting your credit score could be your only alternative. In that regard, check your credit score online and come up with strategies to boost the current score. There are more than enough programs out there you can follow to help you do so.

Consider repaying all the outstanding debts, and try not to get any more loans till you can minimize what’s already on your plate. Over time, your credit score will begin to rise. You can also speak to one of our loan officers to see what is the most important items to take care of first to boost your score more quickly. This alternative requires some patience, and it is not automatic, but in the meantime, you could kill two birds with one stone and start saving for a down payment as well. Six months could make a big difference, it doesn’t have to be years and years of saving!

6. Save Diligently and Pay for the Property in Cash

Open a savings account and start putting money aside that you can use to buy a house in Utah. Note that you need to ensure a disciplined saving pattern in order to achieve the dream of buying a house in Utah. Most people will not go this route & need to be in a home sooner rather than later, but it is still an option, and worth giving it a mention.

7. Cash Out Some Assets To Buy a House in Utah

You know that set of four-wheelers you got 2 summers ago that you never ride? Or that grill you only ever use once or twice when the in-laws come over? You could sell them! There’s probably a lot of things you don’t use daily that you could make some serious cash on. This could be a quick way to raise cash to use to put toward a down payment.

Hopefully, this post has helped instill a sense of hope for your journey to becoming a homeowner in St. George, Utah. I know it can be tough to get your ducks all in a row but there are so many great opportunities and options out there available to see you get into your forever home. For any of your financing questions, you may have, feel free to reach out to any of our friendly & knowledgeable Loan Officers here at Sun American Mortgage. They would be happy to give you some solutions & options to get you into your forever home.

Tips for Buying a House with Low Down Payment in St. George, Utah

The prospect of raising a 20% down payment has become a major hurdle. In fact, raising the down payment could delay the dream of home ownership by quite a few years, and I understand many families don’t want to, or simply can’t put those dreams on hold that long. As a result, many people are forced to continue paying monthly rent because they cannot afford a huge down payment on a home.

Don’t be discouraged! There are low down payment home loan options. If you are getting ready to purchase a property, you may be considering the no down payment or low down payment options.

The good news is that there are mortgage lenders requiring little or no money down to finance your dream of owning a home. Low to down payment mortgage allows first-time home buyers and repeat homebuyers to own a property by only covering the closing costs and possibly a small down payment.

Here are some of the options you may want to consider to make the homeownership dream a reality:

1. The US Department of Agriculture Home Loans:

Available at as little as 0% down, the USDA home loan provides up to 100% financing on home mortgages.

The USDA home loan is also referred to as the Rural Housing Loan. As the name depicts, the USDA home loan is available to those willing to purchase a property in suburban neighborhoods.

The objective of the USDA home loan is to reach the low to moderate-income homebuyers by providing a mortgage at 0% down.

To qualify for the USDA home loan, the borrower’s income needs to meet various guidelines. As well as the property to be purchased should be located within an eligible rural area as determined by the US Department of Agriculture.

Advantages of USDA Home Loans include:
 – Requires as little as low percent down payment.
 – USDA home mortgages are available at interest rates lower than what the market offers.
 – Features a lower monthly private mortgage insurance.
 – Flexible credit guidelines.

2. The VA Home Loans:

The VA loan is another option available to first-time buyers at a low percent down! However, only members of the US military and their spouses are eligible to borrow under the VA loan.

The United States Department of Veteran Affairs guarantees the VA loan. If you are a retired veteran or a surviving spouse planning on buying a house in St. George, you can apply for a loan under the VA program. Unlike the USDA home loan, the borrower is not restricted to the areas where to buy a property.

The VA loans provide loan sizes of up to $765,600 for those buying properties in high-cost areas.

The VA loan and the USDA home loans are great for 0% down options.

Now, let’s go over some low down payment options:

3. The FHA Home Loan:

One of the low down payment options is the FHA home mortgage. Guaranteed by the Federal Housing Administration, the FHA home loan is available to borrowers at only 3.5% down payment.

You will still need to fulfill a set of requirements though, which are:
– Borrowers must provide a valid social security number and show they are lawful residents in the US.
– The FHA home loan is available for primary residence occupancy only. Not ideal for commercial, or rental usage of the property.
– The borrower should have a minimum credit score of 580 and a down payment of 3.5%.

4. The Conventional 97 Program:

Available from Fannie Mae and Freddie Mac, this is a 3% down payment program. It’s a great option for first-time homebuyers or low-income earners. The Conventional 97 mortgage is a less expensive option compared to the FHA loan that requires a 3.5% down payment.

The borrower also has the option of using gifted funds to pay the down payment for this particular loan.

For years FHA Loans have been first time home buyers only option, and though it has many wonderful benefits, Conventional 97 offers a better reality. It has no upfront mortgage insurance fees, & has cancellable monthly PMI.

5. The HomeReady™ Mortgage:

Created in December 2015, the HomeReady™ is backed by the US Government & Fannie Mae and available through a majority of lenders. The HomeReady loan comes from a line of Conventional loans that have been reduced to help aid low-income earners to buy or refinance.

The HomeReady™ permits income pooling from all household members, making it a very good option for helping those looking to purchase a property but cannot raise the high down payment required through a regular conventional mortgage.

Hopefully exploring your options & seeing that there’s the hope of homeownership, I hope you’re looking forward to finding & buying your dream home in St. George, Utah! The high down payment requirements should not stop you. Take advantage of the low down payment or low down payment options we offer here at Sun American Mortgage, where one of our amazing loan officers can help finance the dream!

Six ways to break the renting cycle and become a homeowner!

Recent statistics show that the national homeownership is at more than 64 percent. This is enough proof that Americans are realizing the perks that come with homeownership instead of renting.

Owning a home means you accumulate equity, on a monthly basis. Stop paying someone else’s mortgage! Here are six ways to get out of the rent cycle and into homeownership.

1. Start Saving For a Deposit

A major hurdle when trying to get your home loan approved is raising a down payment. Saving a down payment requires discipline and budgeting. Most lenders believe that a borrower who has raised the 20% down payment is less likely to default on the mortgage.

Having a larger down payment will improve your chances of qualifying for a mortgage. There are loan programs that require as little as 3.5% down on your home to qualify. You don’t always have to have 20% down to get a mortgage. Of course, saving for a down payment can be the toughest hurdle when it comes to buying a home. Don’t let this deter you from looking into buying a home!

Here are tips to save for mortgage down payment:

  • Transfer money into a separate savings account monthly
  • Skip vacations for a while and save
  • Lower your overall expenses
  • Reduce high-interest rate debts (credit cards, student loans, etc.)
  • Borrow money from friends and relatives
  • Borrowing from a retirement plan
  • Sell some investments and save the money
  • Get a second job

2. Focus on Improving your Credit Score

Having a down payment is a great start to getting pre-approved for a loan, but you also need to make sure your credit is in good shape. Your credit score helps the mortgage lenders to determine your likelihood of repaying a mortgage. The better your credit score, the more likely you are to be approved for a new line of credit like a mortgage, credit card, or car loan.

You can check the credit score online regularly. To ensure you maintain a positive credit score, consider the following tips:

  • Make sure your bills paid on time
  • Keep the credit card debt low
  • Ask for high credit limits on your credit cards
  • Check for credit report errors and dispute any mistakes
  • Don’t have your credit pulled to often

3. Research Loan Programs Aimed at First-Time Buyers

First-time homebuyer programs are out there to help you get into a home more easily. Luckily, different mortgage companies provide easy access to homeownership programs with low or no down payment options. Here is a list of the homeownership programs available to first-time homebuyers:

Check if you qualify for either of the above first-time buyer programs and apply. Various mortgage lenders provide easy qualification requirements, helping new home-buyers get out of the rent cycle. We can explore all of your loan options with you over the phone or in-person.

4. Buy a home with a friend

Did you know that you could collaborate with friends or colleagues and purchase a home? This is an easy way to pull your resources together and become homeowners together. Raise the down payment together and do home shopping. Split the mortgage payments to save money!

5. Spend Less on Rent

Save by renting in a smaller place for a while. You can downsize into a smaller, less expensive rental to save money for your down payment and closing costs. You’ll be amazed how fast you can save when you are living in a smaller rental for a bit. It might be a little cramped, but you will be able to buy your own home faster!

6. Speak With a Pro

For a majority who prefer home rentals, it is not because they are happier paying rent. It is just that they are not aware of the different options available to them. Speaking to a pro will help you skip rent cycles, and move into homeownership. Look to an experienced loan officer who will help you through the different homeownership programs.

Homeownership remains everyone’s dream. Unfortunately, many people do not know how they can move from home rentals into home ownerships. Are you looking for ways to move out of the rent cycles trap? We have looked at six tips meant to assist you. Talk to our experienced mortgage loan officer for further assistance.

7 Must-Read Secrets to Winning a Home Loan Application in Utah – #3 is our Favorite!

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 more!

1. Work on getting the credit score in shape

What really matters when applying for different St. George mortgage options is your credit score. Before you can even start evaluating the lenders, evaluating your credit score is critical. Consider that lenders of conventional St. George mortgages will check your credit score before issuing the pre-approval letter. If you do not meet the minimum credit score to qualify, they will not be able to approve 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? 

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 pre-approved.

3. Get your home mortgage pre-approval letter

This is another important stage when applying for a home mortgage! The mortgage pre-approval letter is important before you start looking at houses available for sale. In fact, with a mortgage pre-approval letter, you gain a competitive edge when bidding for the property. Sellers feel more confident in buyers who already have a pre-approval. This is because it is already evident that a home mortgage lender has already looked at your finances and felt that you can afford the home. We recommend getting a pre-approval letter before shopping for a home.  This will save you time and will help  you to motivate the seller to accept your offer. 


For pre-approval 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 can compete to attract borrowers. Their interest rates can vary, so it’s good to get a quote from a few mortgage lenders. It’s good that you shop around inquiring for the best rates they can offer 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. Do your best to find a loan with reasonable 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. 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. 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 home loan. At Sun American Mortgage, we provide access to different home mortgage programs. We are happy to help you find the best home loan option for you and your family.

12 Proven Tips for First Time Home Buyers in Utah

Buying your first home in Utah can feel exciting. But I know that it’s such an overwhelming experience at the same time! This is because of the many decisions you’ll be faced with, particularly financial decisions. For instance, choosing the right Real Estate Agent, or Mortgage Lender is not as easy as it may seem to be. With that being said, it’s important first-time homebuyers in Utah to understand these tips to help them to make the right decisions.

Here are 12 tips for first-time homebuyers in Utah:

1. Start Saving for a down payment

Some first-time homebuyer programs in Utah require that you pay a certain percentage as the down payment. No matter how small this percentage may seem, you ought to have started saving for a down payment like yesterday! Don’t wait until it is too late. You can set up automatic withdraws from every paycheck and put it into a down payment savings account. 

2. Explore your options

 Unfortunately, some first-time home buyers tend to go with the first option that they come across without finding out what other Lenders are offering. You’d be surprised to find out how much money you could have saved if you had taken the time to study the different lenders and loan programs, they might be able to offer you! Do your homework before deciding.

3. Local Assistance Programs

Apart from the state-level down payment assistance programs, there are several different local assistance programs you could choose from. For first time buyers, these first-time home buyers’ programs feature different perks. Some include down payment assistance, closing cost assistance, tax credit assistance, and discounted interest rates. These assistance programs feature significant savings for first-time homebuyer. Hop on online & see what some of your local options are!

4. Find out how much you can afford

Home buying is exciting, especially when you have so many options and benefits to choose from to help you get into your dream home. Before the emotions carry you away, it would be smart to determine how much you can afford. What amount can you safely afford to repay? Don’t forget that if you don’t repay the full amount, you may lose the property to the lenders. Speak to a loan officer to find out more about how much home you can afford.

5. Take the time to improve your credit scores

When you are applying for a mortgage loan, your credit score is one of the key factors the lender will use to determine if you’re going to honor your loan terms. Now knowing this, I’d recommend you take the time to work on improving your score before submitting a loan application. Maybe loan programs require a minimum credit score to qualify. You can get one free credit report a year from annualcreditreport.com to explore the health of your credit score.

6. Minimize your debts

At this time, you are preparing to borrow a large sum of money to finance a major investment, which is your home. Therefore, it is not the best time to start borrowing to finance other things. Pay down your balances on your credit cards and loans to lower your debts. Lenders take a look at all of your ongoing monthly expenses to determine if you can afford the mortgage. Do your best to minimize your expenses to qualify for more house.

7. Compare your mortgage options

Don’t just assume the first Lender is going to give you the best loan. Search it out, do your homework. Google is your friend. I recommend reading the reviews & ratings. You can always call lenders and ask questions if you are unsure of who to trust. It’s a big investment. Make sure you find the best value and the best service around.

8. Get Pre-Approved for a loan

After you’ve chosen a lender, they’ll request some of your financial documents. Things like Bank Statements, Tax Returns, Paystubs, & a Government Issued ID. They’ll also run a Credit check & use that to help determine how much you can afford. Once they’ve looked through all that information, they’ll write a letter of pre-approval saying how much you can spend. Then you & your Realtor are good to go house hunting!  

9. Minimize Existing Debts

It’s not the best time to start borrowing to finance other projects that can wait. For instance, if you need to purchase a car, this is not the time to withdraw your savings to finance car purchases. Delay other investments and don’t finance or charge anything until after you have closed and funded on your home.

10. Compare Mortgage Rates

Don’t just assume the first Lender is going to give you the best deal. Search it out and do your homework. Compare a few lenders and pricing options. Google is your friend, we recommend reading the reviews & ratings.

11. Get Pre-Approved

After you’ve chosen a lender, they’ll request some of your financial documents. Things like bank statements, tax returns, paystubs, & a government issued ID. They’ll also run a credit check & use that to help determine how much you can afford. Once they’ve looked through all that information, they’ll write a letter of pre-approval saying how much you can spend. Then you & your realtor are good to go house hunting!  

12. Make an offer and prepare for closing

The offer should be based on the amount you qualified for, and on the first-time homebuyer programs in Utah, you so cleverly found and applied for. I’d make sure you have a good realtor to help with the closing part, as there are a lot of important & confusing documents that can go over your head! They’ll know how to negotiate & navigate these waters. If you have a good agent, it’ll be smooth sailing & you won’t need to worry!


With the above tips in mind, you’re ready to get your house hunt on! Especially with the best deals for first time home buyers in Utah. Remember there are different Utah housing down payment assistance programs, so even if you’re not in the best financial position, there are options for you! As well as others to just help save money. Good luck out there, & remember… Have fun! House shopping Is an exciting time in your life.

A Guide on How to hire best mortgage lenders in Utah

Whether you are planning to buy a home or build a rental apartment in Utah, it’s going to be in your best interest to find a Mortgage Lender that’s going to get you the best bang for your buck. Making choosing the best mortgage lenders in Utah an Important decision.

When you’re finally ready to buy a home, or an investment property, don’t base the decision merely on interest rates like many mortgage borrowers have done in the past. You’d be surprised by how much more goes into it then just rates alone.

In this post, we take a look at some of the best tips for finding the best mortgage lenders in Utah. Here are some of those important tips to help you in choose your mortgage lender:

1. Tighten your finances

Mortgage lenders in Utah will consider various aspects regarding your personal finances in order to decide whether you can afford to pay off the loan or not. Before you start to approach Mortgage lenders, start by working on your personal finances. Here is a breakdown of the aspects you need to put into consideration regarding your personal finances.

Check your credit score:

The credit score informs the lenders how quick you are with paying your bills. They want to know you’re going to honor your commitment & pay them back. With this being said, I’d strongly recommend having a healthy credit score before going in & applying for loans. It’ll just be all the more reason why they should approve you for a loan!

Pay off other debts: 

Do you have outstanding expensive debts? If yes, I’d strongly recommend you pay off those debts to decrease your debt to income ratio. It’s not impossible to get a loan if you’re in debt already, so don’t be discouraged! There are so many different loan types out there for all kinds of situations, it just greatly helps if you have little to no debt to work with.

Start building your savings account:

Most people know by now that it’s industry standard to put 20% down when it comes to home buying. There are loans that only require as little as 3% down, but then factor in closing costs & appraisal of the home & things start to add up real fast. I’d recommend putting some cash away so you can be prepared for that!

By working on the above tips, your personal finances should improve. Now let’s look at some other tips that’ll help you get into your dream home!

2. Understand the different mortgage loan types

When it comes to choosing a mortgage lender in Utah, you need to consider the different kinds of loans they offer. Here’s an overview of the different loans offered by the best mortgage lenders in Utah:

  • Conventional Mortgage: this is a loan that is backed by either Fannie Mae or Freddie Mac. The conventional home mortgage can be used to finance residential or commercial properties.
  • The FHA Loan: This loan is backed by the Federal Housing Administration, & features more flexible terms. It’s a great option for first time home buyers or those who can only afford a low-down payment.
  • Reverse Home Mortgage: If you’re 62 or older, and you have home equity built up in a home, the bank can pay you! The reverse home mortgage requires no monthly repayments, & let’s you deplete the equity in your home so long as you remain in the property till you pass away or move. It’s an excellent option for seniors who need to supplement some Retirement money.
  • USDA Home Loans: Also, a great low-down payment loan option. The USDA home loan is a federal program that is designed to encourage investments in the low populated towns.
  • The VA Loans: This is a Veterans Administration Insured loan and it is available to the members of the Armed Forces. This mortgage loan allows up to 103% financing to the veterans.

With a better understanding of the above mortgage types, you can choose the mortgage lenders that offer the specific mortgage type you are looking to apply for. Remember that each of the loan types feature some advantages or attractive terms making it an ideal product for you but may also have some catches or things you simply just need to plan for before getting that loan type. Quick Example, for an FHA loan that only requires a 3% down payment, you will have to pay Private Mortgage Insurance in your monthly bill to insure the Mortgage Lenders get paid, BUT, you can always refinance 6 to 9 months down the road once a little equity is built up to get rid of that Private Mortgage Insurance. Just some things to keep in mind!

3. Compare the interest rates

Avoid the temptation of choosing the first mortgage lender you come across. Instead, find out what other mortgage lenders offer and come up with a list of the interest rates that they are charging. Go ahead and shop around for mortgage lenders offering the lowest interest rates. While considering the interest rates, don’t forget that different mortgage types come with different terms and interest rates. For instance, a VA loan has a lower interest rate compared to the conventional home mortgage.

4. Get Competing Pre-Approvals

For each mortgage lender that you investigate, try to get pre-approved by them so you can compare which lender will give you the most bang for your buck. The pre-approval involves performing a credit check and running various financial information to see if your debt to income ratio is “healthy” or safe enough to lend on.

By gathering all this information, you should now be in a great position to choose the best mortgage lenders in Utah!


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.