27 Jul 5 Things You Need to Know About Mortgages
If you are new to the idea of homeownership and the thought of a mortgage feels intimidating, then we’re glad you’re here. Homeownership shouldn’t feel scary!
At City Creek Mortgage, the first thing we want to do is explain the process clearly and easily. We want to be sure you understand exactly what options are available to you. Then, we want to make sure all your questions are answered.
Before You Borrow
At City Creek Mortgage, we want to ensure that when you’re ready, you can sign your mortgage papers with confidence. We don’t ever want your mortgage to overextend your budget, deplete your cash reserves, or cause anxiety about your payment.
We aim to have an open and honest conversation with you about your financial health so that you know what to expect at the beginning, during, and throughout the mortgage process. It’s important to us that we help you:
- address any credit challenges to improve your credit score
- determine a deposit without depleting your cash savings
- analyze your cash flow and monthly budget to determine healthy opportunities
Once we’ve determined the appropriate course of action, we can help you realize your dream of homeownership.
For obvious reasons, it’s important to know basic mortgage terminology. However, if there’s ever anything you don’t understand, please ask. Answering questions and ensuring that you feel confident about the process from beginning to end is essential to us. Some basic terms you’ll likely hear during the process are:
- Mortgage. A mortgage is a financial transaction, a legal commitment that exists as a piece of paper that you will repay a lender for the monies you’ve borrowed to purchase your home.
- Rates. In its most basic sense, mortgage rates are the interest charged on a mortgage loan. Rates can change based on market conditions. In straightforward terms, the lower your rate, the less expensive your loan.
- APR. Annual Percentage Rate is calculated differently from your interest rate. The APR includes the overall cost of a mortgage, including the interest, closing costs, and other associated fees over the lifetime of the loan. You are entitled by law to know your APR.
- Closing Costs. These are all the costs you will pay at the signing of your mortgage. This includes origination charges, appraisal fees, credit report costs, title insurance fees, and other fees required as a part of the mortgage transaction. Lenders must provide you with a list of these costs in your loan estimate.
Qualifying for a Mortgage
No matter what – don’t be intimidated. Qualifying for a mortgage is easier than you may think. Low credit scores, no down payment, and other barriers to homeownership can often be overcome with financial planning and assistance from professionals like ours.
The best way to start the mortgage process is by having a conversation with one of our City Creek Mortgage team members.
There are a variety of mortgage options available. At City Creek, we want to be sure you’re getting the right mortgage for your unique circumstance. Some terms with which you may already be familiar are:
- Conventional. One of the most common types of mortgages, this mortgage follows conforming guidelines and isn’t guaranteed or insured by a government organization. Individual lenders are available to provide conventional home loans.
- VA. VA mortgage loans are insured by the Department of Veterans Affairs (VA) and are offered to active duty military or veteran service members, depending on how long they served. The VA doesn’t lend money. It just guarantees the loan and protects the lender if the borrower fails to pay.
- Fixed-Rate. These mortgages offer a fixed payment over time and usually come with 15- or 30-year loan terms. With a fixed-rate loan, you can count on your monthly payment to remain relatively unchanged for the life of the mortgage.
No matter which type of loan you decide on, you should enter into a mortgage only if you completely understand the terms and payment expectations. Not every loan will be right for you, and that’s all right. City Creek Mortgage team members are here to help and walk you through every step of the process.
The City Creek Mortgage Difference
City Creek Mortgage isn’t your typical mortgage company. Our small, family-owned, local business is a safe place for our clients to make big decisions.
From the very beginning in 1998, owners Mike and Tobi Roberts set out to provide a mortgage company that did right by their clients, took personal responsibility for their company, and provided quality service and an excellent product.
For Mike and Tobi, it’s always been personal. Not only do they care about their clients, they care about their employees. When you work with us, you will notice a difference from the very beginning of your mortgage process. We want to be the most trusted, respected, and loved mortgage company in Utah.