If you are living in Utah, certainly you have heard of bankruptcy issues pinching the whole state. For numerous years now, Utah has held the conniving honour of ranking among the states with the highest annual bankruptcy filing rate. There is likely more than one explanation for such a phenomenon. At the very least, there is no easy answer as to why exactly numerous citizens of Utah struggle with financial issues. In fact, one might expect the opposite of Utah citizens, given the strong presence of The Church of Jesus Christ of Latter-Day Saints & the powerful admonition the president of the church, Gordon B. Hinckley, stresses to its members. President Hinckley strongly advises against incurring any unnecessary debt in addition to living beyond one’s means.
Clearly, Utah is full of citizens who understand the dangers and trappings set by debt, yet they are no better off than the rest of America. In fact, relative to the other states, Utah is in considerably worse condition. One of the problems can be explored by examining the St. George mortgage lenders. When you are looking to buy a house, many individuals will advise you to purchase as much house as you can afford. Perhaps this is good advice, as real estate prices traditionally trend upward, & the best homes command the highest appreciation. However, if this advice is taken out of context or misunderstood it can prove overwhelming.
St. George Mortgage Example
For instance, let’s assume Sam O’Dell received the same advice we just discussed. His neighbour counselled him to take advantage of low mortgage rates & buy the best house he could afford. All in all, this was sound advice. So Sam started looking around in upper-middle-class neighbourhoods exploring his dream home. After a week he stumbled across the house that was perfect. Based on his income stream, Sam had decided he could afford a $300,000 house. When Sam told the real estate agent of his dilemma, how he loved the house but it was just out of his price range, the agent responded positively. The agent seemed confident the price could be negotiated down to $365,000, and that given Sam’s steady stream of income for the past 7 years he would easily qualify for the superior Utah mortgage than he had expected. As it turns out, the real estate agent was right. The sales price of the home was talked down, the bank agreed to finance the mortgage, and Sam was able to move into his dream home.
Everything worked out just excellent for Sam, so what’s the problem? The problem is one that is so often overlooked. The amount of money you can afford to spend on a house and the amount of money the bank is willing to USDA rural housing loan Utah to you are two entirely different figures. Just because the bank is willing to loan you $365,000 for that dream house of yours does not mean you can afford the monthly payments. What you can afford should be determined by your monthly cash flow, especially taking into consideration your income as well as your debt that must be serviced. Quite frequently a bank will be willing to USDA rural housing Utah you more than you can afford. The trap is easy to fall into, especially when you have visions of that perfect house circulating in the back of your mind. Don’t let a mortgage drive you into bankruptcy. Securing your next Utah mortgage can be a pleasant experience, and remain so for the life of the loan, so long as you remember that what you can afford and what the bank will loan you are not one and the same.
Utah Mortgage – What to Expect When Buying a Home in Utah
Maybe you are buying your first home in Utah, or perhaps you are relocating to Utah from another state. Either way, it’s important that you educate yourself on Utah home loans before shopping for a home and mortgage. You will need to know before buying a home in Utah – The median price of a home in Utah is $146,100. Recently, homes in Utah have been appreciating at rates below the national average. Consequently, affordability is favourable in the state of Utah. Interest rates in Utah are below the national average, & job growth rates are the third highest in the nation.
In Utah, mortgage financing & regulation are monitored by Mortgage Lending & Servicing Act. Lenders and brokers are not allowed to charge Utah borrowers any fees while the loan is being processed. Additionally, at loan closing, the lender must supply the borrower with any information regarding the balance of an escrow account, the unpaid balance of the mortgage loan, and the date and amount of all payments credited to the borrower’s account.
Utah residents qualify for both state and federal housing programs. The state of Utah offers below-market interest rate loans to low or moderate-income residents who purchase homes in qualified rural areas.