Buying a home can be both an exciting and stressful experience. The excitement mostly comes from the joy and thrill of viewing houses or hunting for the right one. The stressful part, meanwhile, comes from getting your finances in order, navigating the process of getting a mortgage, finalizing the sale, and any other process that comes with the purchase.
It is easy to get overwhelmed, particularly if you don’t know where to start. There is also the risk of being ripped off or ruining your finances, especially if you encounter opportunists who might lure you into getting a loan with extremely lenient requirements, but then end up paying a lot more than what the house is actually worth.
Utah home loan lenders suggest approaching the process right by being an informed buyer. This includes doing some research, contacting reputable lenders, and finding out how much house you can comfortably afford. It also pays to be aware of a few other helpful tips that can help you find the right loan while protecting your finances.
Here are some things to keep in mind:
- Be wary of too good to true deals or loans. While you can still get a loan with poor credit score or low down payment, do take note such loans come with higher rates or monthly payments. A reliable lender should tell you about this and the other risks involved. Be cautious if the one you’re working with tells you that they can easily approve your application and give you a low rate loan despite credit problems. If the offer seems too good to be true, it probably is.
Double-check your requirements. When submitting documents for a loan application, make sure that all the information you have provided is accurate. Watch out for those who tell you that it is okay to falsify some of your documents just to qualify for a certain loan program or loan amount. Also, be sure to avoid forging any information or signing documents and agreements that you know aren’t entirely truthful.
- Find out about the prepayment penalties. Some mortgages include a prepayment penalty if you decide to pay off your loan early or before the set date. Ask your lender about this when choosing your mortgage. If possible, choose a mortgage that doesn’t come with a prepayment penalty. Know other mistakes to avoid when paying your loan early.
- Only sign complete papers and documents. Before signing anything, make sure that everything is accurate and complete. Never sign any paper or document that has incorrect dates or blank fields. The same is also for anything with incomplete or fabricated details. If your lender asks you to do any of these, better find a new loan provider.
- Understand what you are agreeing to. Make sure that you know and understand what is stated in the document before signing. If your lender gives you a written estimate, for instance, don’t accept it right away. Take the offer home and review it diligently. You can also ask your lender to explain all the costs included or get help from a credit counseling expert if you are unsure about the offer or loan terms.
Do your own homework and work with a reliable lender who can assist you in making an informed decision. Moreover, make sure to get a mortgage preapproval first before viewing homes or going house hunting.