Don’t Forget to these Questions Prior to Getting a Mortgage
For many of Utah’s residents, buying a house or continuing to rent is a big question they always ask themselves. And for many good reasons. The greatest one, however, is the simple fact that home buying and ownership comes with massive financial responsibility.
The good news is, there are some questions you can ask yourself to determine whether you’re ready to take on this challenge and reap the benefits of homeownership in Salt Lake City. So before you even start shopping around, it’s best you first answer these questions honestly.
How long do you plan on staying in the same house?
Altius Mortgage stresses the link between finding the right mortgages and the length of time buyers would live in the same house.
For most home shoppers who plan to live long-term in the same property, a fixed-rate mortgage offers the best deal. They make lower monthly payments since the lenders stretch their loans out over the chosen term or duration. On the other hand, an adjustable-rate mortgage may be more suited for you if your plans involve living in the same house for only several years and you’d like to take advantage of the introductory rates.
How big of a down payment can you make?
Today, you will find offers in the market that won’t require you to make the traditional down payment of 20%. Some will still require this, but at a reduced percentage. However, tempting it may be, you should still consider the benefits of putting down as much as you can since this ultimately leads to lower overall home buying costs. Besides, lenders will look at you more favorably, as the ability to make a big down payment indicates your good and stable financial standing.
Home buying and mortgages don’t have to strain your finances too much. With proper knowledge and the right real estate professionals on your side, you can make the transition from being a renter to a homeowner easier and less hassling.