One of the first steps in getting your Utah home loan is getting pre-qualified for that loan. Before you ever look at a house you should be pre-qualified with your lender so you know what your budget is and how much you can afford to spend on a home. You can’t begin to talk to someone about buying a home without pre-qualification, and with good reason. If you are way out of your price range when looking at homes, you are not only wasting your time, but you are wasting the realtor’s time as well. If you do start looking at homes without pre-qualification and you happen to have some questions, the realtor or whoever is selling the home is going to want to know some figures from you. You probably won’t have these figures together until you have been pre-qualified for a mortgage. So what is the first thing you need to do to get your pre-qualification moving forward? First, you need to get all of your financial statements together. This will include all of your sources of income and all of your monthly bills. You will need proof of your income and it will need to go back for some time. Paystubs will work and probably so will bank statements. It is recommended that you probably keep two years worth of these statements to give to your lender for helping them make their decision. The lender is trying to make sure that you are financially able to buy a home and that you have some constancy in your life. If you have happened to move a lot or changed jobs a few times, you should write up a document specifying why this was so the lender can have trust that you aren’t flaky. Make sure you have all your tax statements together.
If you are not applying for the loan by yourself, then you will need to have all that information for every party involved. The lender will want to have everything in order before they move forward with your application. Remember that the lender will run on a credit check on you and everyone that is on the loan application. If you have time before hand to make sure that everyone is sporting a respectable credit score, ideally as high as seven hundred, but possibly passable if you are in the low six hundreds, then you should. You will not be able to get a Utah home loan if your credit score is terrible. You have hope otherwise. If you happen to give the lender the wrong information, you can set your application process back by who knows how long. This is why double checking your information and your applications is such a good idea. It doesn’t cost you anything and it protects you from future failure. When you are figuring out your financials, you need to remember to put whether you pay or receive child support. It will count against you if you do and your income goes below a certain threshold, but if you make plenty of money, this should not be a concern. If you are receiving child support, the lender will usually want to see multiple years of stable payments before they will consider the child support to be income. Your lender will take all of these figures and put them together to determine what and how much you should pre-qualify for. This figure might be disheartening to you, but you have to remember that it is an honest reflection of your financial worth at the present time. If you are able to save more money or make more money, you could change this figure in the future.
After you have given your information to the lender and you know what amount your Utah home loan will be for, you can start looking for homes. The pre-qualification period is to help you learn what kind of home you can afford and this will need to be adhered to. The Utah loan programs available have taken all your pertinent information together and decided how much you can afford to pay for a house. Don’t go over this number or you will probably regret it in the end. You may have questions concerning your qualification. Make sure you go over all questions you may have concerning your loan. If you don’t like anything, make sure your lender goes over it with you so that you know what you are getting yourself into. After you sign all of your paperwork with your loan officer and all the other pertinent parties, then you will be legally obligated to fulfill your end of that contract. With this in mind you shouldn’t be signing anything until you are sure that you are comfortable with all the terminology and everything that is in the contracts. This will be your debt and your home so you need to make sure that you understand everything in the contracts. Your Utah mortgage loan will be with you for the duration of your home ownership. Make sure you understand it and that everything is kosher. If you feel like you must, it is not a bad idea to have your lawyer look over the paperwork in the case that you do not understand all the jargon that you will encounter throughout the long and wordy contract. Enjoy your new home!
About the Author
Primary Residential Mortgage, Inc. is one of the premier lenders in the mortgage industry. Our goal is to provide borrowers with the best possible financing options available in today's mortgage lending environment. Call us at 1-888-808-8227 for more information or visit us at http://www.primaryresidentialus.com
Take the Right Steps for Your Loan Pre-Qualification