So, you’re ready to buy a home, and now you need a mortgage? Congratulations! This is an exciting time and a big deal. At City Creek Mortgage, we know what it means to reach this milestone. You need a mortgage lender who will provide you with the best value and exceptional customer service.
At City Creek Mortgage, you’ll find a team ready to work for you! We want you to have the best information to make the best decision for you and your family. This is a long-term investment, and we want you to feel good about your choices. There are a few things you can do to make sure you’ve found the mortgage lender for you.
Clean Up Your Credit
Before you start applying for mortgages, do a quick review of your finances. If you find blemishes, take the time to fix them. Your first step is to pull your credit score and credit reports.
Once a year, you’re entitled to a free credit report from each of the three reporting bureaus – Experian, Equifax, and TransUnion. You can easily apply for this credit report online. If you have a low score, take the time to look through the statements for errors, late payments, and accounts that may be delinquent or have high balances.
The best way to improve your credit score is to make your payments on time and pay down your credit cards to below 30% of your available credit limit.
When a lender looks at your solid score, that signifies you can be trusted to pay your debts on time. This encourages a lender to do business with you and may provide you with a more favorable rate.
Look closely at your debt to income ratio. A general rule of thumb is to have a ratio below 43%. To keep this percentage low, don’t take on any more loans or make large purchases on credit for three months before you apply for a mortgage.
The higher your credit score, the better your chances of getting a good mortgage with a lower monthly payment. A low-interest rate means you’ll need to borrow less money!
Think Through Your Budget
Before selecting dream homes, it’s a good idea to think realistically about how much house you can afford. Just because you have been approved for a particular amount doesn’t mean you should spend that amount!
Think about your mortgage in terms of the monthly payment. You don’t want to stress your monthly budget so severely that you’re stressed, worried, or in a constant panic. Leave yourself enough room to continue doing some of the things you most enjoy. Be sure to plan for unexpected expenses. Always schedule a monthly payment to your savings account!
Lenders don’t always take the time to help you think about monthly expenses like prescriptions, daycare, groceries, car maintenance or utilities. You’ll need to consider all these monthly expenses before deciding on a mortgage you can afford.
This may mean you’re not quite ready for the home of your dreams; however, taking the time to think all these pieces through beforehand will save heartache and stress in the long run. Don’t sign yourself into a monthly payment you can’t afford; that’s not good for anybody.
Compare Rates from Multiple Lenders
While we want you to choose City Creek Mortgage for your loan, we also know it’s essential that you shop around. Do a little research and rate-shopping. Check with banks, credit unions, and online lenders to make sure you are getting the best deal on rates and fees and terms.
Once you’ve determined the mortgage lender that’s best for you, pat yourself on the back! Throughout this lending process, you must keep your credit clean.
Don’t make any major financial decisions until your mortgage has been signed on the dotted line! A mortgage is a real commitment – make sure you’re ready. It’s always better to wait than to jump in with both feet and feel overwhelmed and stressed.
City Creek Mortgage is the most trusted, respected, and loved mortgage company in Utah. We’ve helped our clients save thousands of dollars and guided others through big financial decisions with transparency, honesty, and top-notch customer service.
We know what it is to put your finances in someone else’s hands. We’re here to make you feel empowered, in control, and knowledgeable about all your options and what they mean. We won’t ever make you feel stupid, ashamed, or powerless. That’s just not who we are.