What to Do While Waiting for Favorable Mortgage Rates
Mortgage applications fell by 0.5 percent last week according to the Mortgage Bankers Association. Similarly, refinance applications dropped by 4 percent. These decreases came after upticks in mortgage and refinance rates in recent weeks.
You can expect even higher rates in the weeks to come. In the meantime, what should you do?
Prepare for a Mortgage
What can you do as you wait for favorable rates for a first-time mortgage here in Utah? You can practice many principles that can help you in your mortgage application and through the course of your mortgage too. You can live within your means; prepare important mortgage documents; and more.
Cut Down on Expenses
Living within your means can immensely help you get favorable mortgage terms since lender see that you manage your finances wisely. At the same time, living within your means can help you make your mortgage payments without fail.
Compile Required Documents
As you wait for better mortgage rates, you can prepare important documents and records in advance. With important documents on hand once you apply, you will have a faster and smoother mortgage application process.
You need to have a few recent tax returns, pay stubs, driver’s license, W-2’s, Social Security card, bank statements, and more.
Save Up for Down Payment
You can also save up for the 20 percent down payment recommended in mortgages. Although many today opt for lower down payments, a higher down payment means you gain lower monthly mortgage costs. You also build equity on your home much faster.
Choose Your Mortgage Type
You can start picking your type of loan as you wait too. Decide between fixed-rate and variable-rate mortgages. What works best will depend on your individual or family’s financial situation now and in the future.
The list above includes only some of what you can do while you wait for better rates. Continue to monitor rates, however, since sudden rate drops can be an opportunity for you to get a great mortgage rate.