mortgage loans Tag

Happy 20th Birthday City Creek Mortgage

Who would have guessed that a couple of kids who met in their teens would marry, build a business, and work together for over 20 years? Every statistic out there says it’s almost impossible—and they’re right! Some days, “hard” is a laughable understatement.

But as we look back over the last two decades at all the families we’ve helped, all of the teammates we worked alongside, all the loyal referral partnerships we have built, and at all the challenges we’ve faced, we are grateful to our core.

Your stories fuel us. Our mission is to help you build beautiful lives just as you have helped us build ours!

Saying THANK YOU for choosing us doesn’t begin to communicate our appreciation. But thank you nonetheless.

Real estate agents have a responsibility to do what is best for their clients. However, this doesn’t always happen. Getting a mortgage is a significant decision for a homebuyer. In many cases, the real estate agent will pressure clients to use their preferred lender. Unfortunately, a referral is often made to a lender that is financially or professionally supporting the real estate agent, rather than because it is the most cost-effective solution for the homebuyer.

The Truth Behind Mortgage Rates
One of the reasons other lenders have higher rates than we do is due to the level of compensation the loan officer is making. If a loan officer wants to make more money,
they simply sell their clients a higher interest rate. When this happens, the client pays more than they need to. Clearly, a real estate agent who wants the best for their clients would not want to add this additional financial burden to people they care about.

For example, a client recently called into City Creek Mortgage to compare the loan offer they received from their real estate agent’s preferred lender. The client was looking to borrow $350,000. When I shared with the client that there was enough income in the rate they were being quoted to purchase a brand-new Toyota Corolla, they were upset. Generally, we can save most clients between 20-50%. In this case, it was much more.

Lenders Who Serve The Agents
Most mortgage lenders market their services to real estate agents under the premise that they will help them grow their businesses. A business model that is designed to provide the benefit to the real estate agent generally comes as a cost to the homebuyer. For example, there are some mortgage companies that have several offices in a community just to provide the convenience to their real estate partners. Clearly, the agent’s convenience provides no value to the homebuyer. However, the homebuyer is the one paying the price each month in the form of a higher mortgage payment.

A Consumer-Focused Model
I believe the right business model for a mortgage company is designed with the homebuyers’ best interests in mind. At City Creek Mortgage our promises and guarantees are to our clients, not to real estate agents. We are a low-cost provider that is designed to keep more money in the pockets of hard working Utah families. For 20 years, this has kept our clients coming back and referring their family and friends to us for their mortgage needs.

If you need help evaluating the price offering of another lender, we can help you. We can estimate the amount of commission income priced into the loan and compare that
to what is priced into a loan offering with City Creek Mortgage. We do what is best for the homebuyer, with the long-term goal of squeezing out the margins in a mortgage industry and eliminate the over-compensated loan officer. As a result, we are the most feared second option by our competitors.

Help us get the word out. When you hear that your family and friends need a mortgage, have them call us. By simply having salaried loan officers and a commitment to make less off each loan, we save people a lot of money. We are Utah’s best mortgage choice and appreciate your continued support.

At City Creek Mortgage, we’re here to tell you that the actual securing of a mortgage loan is only half of the home buying process. We’re also here to help with the other half: Securing a great home based on the financial elements involved in your situation.

For some home buyers, this is the tougher end of things. Some find that they keep coming up short in what remains a seller’s market – they just keep losing out to better-qualified buyers or people with stronger offers. Luckily, there are tactics you can take to help improve your position here. Let’s look at a few.

Move Fast

Given that it’s a seller’s market, you need to be prepared to move quickly when you see a home you like. Hemming and hawing is a quick way to find yourself undercut by another buyer – the quicker you can go from escrow to closing out a deal, the better. If you’re able to pay cash rather than escrow, this will improve your situation even more. Now, be careful not to rush the escrow or mortgage process – now allowing the proper time to close can blow up the transaction.

Prep For Counters

Know that if you receive a counter-offer from a seller, this isn’t meant in an insulting way. It’s likely because the seller has multiple offers, and is looking to get the best deal.

However, be aware that the best deal doesn’t always simply mean the most money. Some sellers might be in escrow and have other concerns, or might accept a lower offer from a better-qualified or more prepared buyer. Many sellers aren’t in a position to risk their position on an iffy buyer, and will attach a lot of importance to buyer quality. This is where having an experienced team behind you can go a long way – it shows you’re prepared and well-informed.

Real Pre-Approval

One big part of becoming a better buyer is undergoing real pre-approval, including significant documentation and background checks. This step will tell you what you can afford, and will make your offer appear stronger in this market. A strong, human-underwritten mortgage commitment will help you win purchase offers over comparable applicants.

For more information on improving your buying position, or for any of our other mortgage services, speak to the brokers at City Creek Mortgage today.

There are a number of factors to consider when deciding on a mortgage for a new home or a home refinance. Everything from credit score to money down to equity can be an important consideration, and as they say, the devil is in the details.

One of the broader choices people are often faced with during these situations is this: Adjustable-rate mortgage or fixed-rate mortgage? These two opposites are really only separated by one major line, but that one element is often the most important factor in determining whether your mortgage ends up being a good investment or a bad one.

At City Creek Mortgage, our expert brokers are dedicated to providing you all the information necessary to make the right mortgage decision – and this is one of the first boxes to check. What makes adjustable-rate mortgages more attractive for some people than fixed-rate mortgages?

Basics of Adjustable-Rate Mortgages

Interest rates are at the crux of every mortgage-related decision, and the first big call you’ll make is whether your interest rate stays the same through the entire life of the loan, or whether it’s open to change based on market factors. If you choose the latter, this is an adjustable-rate loan.

Most adjustable-rate loans actually start out as fixed-rate loans, with mortgage rates that remain constant for anywhere from five to ten years. After that, though, your rates are open to change based on market dynamics. There are limits to how much your rate can go up – never more than 5 percent above your original figure, and always between 2 and 5 percent per adjustment period.

Low Interest Rates

The “adjustable” part of these loans means that you’re making a small sacrifice in some situations – if interest rates go way up during your adjustable period, you’re stuck paying the higher rate even if you started out at a much more favorable number. This wouldn’t be the case with fixed-rate loans, but the trade-off usually comes in the form of a much lower initial rate in the first place. Adjustable-rate loans will start at a way lower point than most fixed-rate loans, and as we noted above, they’ll stay fixed for the first several years before there’s any possibility of a raise.

Perfect for Refinancing

That buffer period where rates remain very low for the first few years makes many adjustable-rate loans perfect for people looking to refinance a home. You can typically refinance up to 95 percent of your home’s value using those low-rate loans, and the long grace period also means people looking to quickly flip a home for profit could be in for a great return. It’s this sort of flexibility that makes adjustable-rate loans attractive to many people, even if they absorb the risk of interest rates which may rise slightly in later years.

Want to learn more about loan types, or any other part of our mortgage service? City Creek Mortgage brokers are standing by.

The process of purchasing a new home doesn’t usually begin with open houses and touring available properties—instead it begins in the office of a mortgage lender. These lenders determine whether you can get approved for a loan, what your interest rate will be, and how much money you can borrow for your home. For that reason it’s important to find the best lender—and you can narrow the list by asking these questions as you’re comparing and researching.

What home loan options do you offer?

Home loan options vary in the amount you can borrow, the interest rates you can qualify for, how much of a down payment is required, and the length of the loan term—and not all lenders offer the same loans. You want to make sure your lender can offer the one that will be best for you, such as:

  • Federal Housing Authority (FHA) mortgages
  • Veterans Affairs (VA) mortgages
  • Fixed-rate mortgages
  • Adjustable-rate mortgage (ARMs)
  • Low-down-payment mortgages
  • Interest-only mortgages
  • Jumbo loans (for homes over $510,400 in most places)

If they don’t offer a loan that works for you, find a new lender.

What are all the costs of getting a mortgage?

Lenders should provide you with what is called a “good faith estimate” (GFE) of all the fees and costs associated with getting your loan. It should include details of each line item. They are estimates, but in most cases the final costs should be very close to the estimate, so you can use the GFE to compare lenders.

How long will it take to process the loan application?

Assuming you provide all the necessary documentation in a timely manner, most loans will take anywhere from a few weeks to a couple of months to complete. If your lender says it might take a lot longer, make sure that delay won’t impact your ability to get the home that you want.

How can we make sure we don’t slow down the process?

Utah mortgage lenders do their best to process your loan as quickly as possible, but sometimes the speed with which they can do their job depends on you. To avoid slowing down your loan approval:

  • Start getting your paperwork in order right now
  • Complete all applications and documents quickly and in full
  • Answer phone calls or email questions quickly
  • Review your credit report well in advance so you can correct any errors before beginning the mortgage loan process
  • Don’t get a new job, take on new debt, or make significant changes to your financial situation during the home loan process

To speed up the process, have all your documents, such as proof of income and assets (pay stubs, bank statements, W-2s, two years’ worth of tax returns), identification, and credit history information available from the beginning. You may also need to show proof that you can make the down payment.

Be sure to ask plenty of questions before you commit to a lender. Your home loan will have a significant impact on your future, so it’s important to work with the right company.