Tag Archives: mortgage

4 Factors That Will Affect Your Mortgage Application

a mortgage loan agreement application and a keySeveral factors can affect your mortgage application. Neglecting any of those factors may get your application a denial. Hiring mortgage brokers in Salt Lake City such as altiusmortgage.com can effectively help you out with your loan application.

But to increase the chances of getting your loan approved, here are some factors that you might want to consider when applying for a mortgage.

Credit Score

Your credit score plays a huge role in your mortgage application. Inadequate credit score may mean fewer chances of getting your loan approved. Normally, minor credit problems won’t affect your mortgage application, but these credit issues may reduce your credit score, which can cause your interest rate to be higher.

It’s important to request a copy of your credit score and see if there are any errors with it.

Employment Status

Your employment status will help the mortgage company determine the amount of the loan that will suit your budget. Most mortgage companies prefer a borrower who’s employed and receive monthly salary or steady hourly pay.

Lenders also offer mortgages to self-employed borrowers or those who receive other types of non-employment financial benefits. However, lenders will have to review if there are any satisfactory archives of stable income before it gets approved.

Debt-to-Income Ratio

Banks will also calculate the borrower’s entire monthly salary. They will total the debts indicated on your credit history report with any financial obligation you must pay and add it to the recommended lease payment.

The sum will then be divided into the borrower’s gross monthly salary to determine the DTI ratio.

Assets

Some mortgage plans require the borrower to have savings in the bank after the down payment and all closing costs have been settled. The banker will ask you to submit any documents stating your assets or where you received the funds to pay the fees.

Applying for a mortgage is a tedious process. Following these tips can help you with your loan application and even increase the chances of getting it approved.

3 Useful Wisdoms to Help You Secure the Most Favorable Mortgage Deal

The Best Mortgage Rate in Salt Lake City

The Best Mortgage Rate in Salt Lake CityAnyone who wishes to buy a house wants, of course, to get the most favorable deal possible. It doesn’t necessarily have to be the cheapest or the shortest, but a mortgage that you believe is just right for your current and foreseeable situation in the future.

There’s a myriad of deals out there, and it’s quite overwhelming to decisively choose which one is really “the one”. Whether it’s your first time to look for a mortgage or not, it pays to keep these nuggets in mind when you shop around:

The Lowest isn’t Always the Best

As AltiusMortgage.com says, the best mortgage rate in Salt Lake City is not all about the interest rate. A home loan involves a long list of fees, which affect the final amount you have to pay. Interest rates usually include points, plus many other additional charges imposed by the lender that may increase your average percentage rate, or APR.

You must dig deeper, and find out what other fees come to the rate you’re eyeing to get a clearer picture of what you’re going to owe.

Leave No Loan Officer Unturned

While shopping around for loans, you will come across different companies you might deal with to make your desirable mortgage agreement possible. Don’t be too quick to trust, though; do a little investigation on how trustworthy these entities are first.

Even if you’re not from the CIA, a few clues could attest to a particular company’s credibility. For example, the BBB seal is a classic testament of how companies live by ethical business practices. Memberships to different respected organizations can also be a testimony to a business’s compliance with industry standards. In some states, certain certifications help guide consumers in their decision-making. In Utah, for instance, Bill Gephard’s stamp of approval is a thumbs-up sign to trust a particular company.

Lock It or It Didn’t Happen

Finding a great deal is one thing; making it official is another. A quoted rate means nothing unless you have it in writing. In addition, loans are only real when funded. If the lender doesn’t provide you the funds, that’s not technically financing.

Everything in mortgage is negotiable. While advertised deals are usually the best-case scenario, you have plenty of wiggle room to secure what’s best for your interests.

Don’t Hesitate: Ask the Mortgage Lender these Questions

Mortgage loan

Mortgage loanA mortgage is one of the biggest debts you may ever be faced with, so it makes complete sense to keep it as little as possible. Your choice in a mortgage lender can either make you a successful home owner, or one who is at high risk of foreclosure.

So before getting into any home loan contract, make sure you get these questions answered.

What mortgage type is best for me?

The answer to this would greatly depend on who you are: as a borrower, your financial status, and your personal circumstances. A reputable mortgage lender like Altius Mortgage will show you a portfolio comprised of loan programs they offer and discuss with you why a certain mortgage is most appropriate for you.

Why do you think that mortgage suits me best?

Whether you are buying for the first time or you have already done so in the past, there are several factors influencing the kind of mortgage you can get. One is how long you plan on living in that home. Another is how much you can afford to shell out as a down payment. Your lender will use these details to match you with a suitable mortgage.

In other words, the local lender should take the time to get to know you first before making any kind of offer.

What are the fees you will charge me with?

Interest rates should not be your sole basis when choosing a mortgage. There are many other associated costs to borrowing, including loan charges, closing costs, third-party fees, and penalties. The lender you will work with should give you a detailed outline of all these, and explain them to you in layman’s term.

How about insurance and taxes?

Being a home owner is a great financial responsibility, and more so when you take out a mortgage. Aside from the initial costs of purchasing, your expenses are also comprised of homeowners insurance and property taxes. Make a down payment of less than 20%, and you would need to get mortgage insurance. Add these and you are looking at potentially thousands of dollars in addition to your monthly mortgage payments.

Do your homework, get recommendations, and consider local companies and your chances of getting the best mortgage will go up.