Tips for Affordable Mortgage Rates in Salt Lake City
Home prices have begun to stabilize in several areas of the country, and SLC has emerged as a leading real estate market.
Real estate information solutions provider DataQuick released its latest Property Intelligence Report, which reveals Salt Lake City experienced year-over-year home price increase of 6.4 percent, as well as a 60 percent decline in foreclosures. Separately, a Brookings Mountain West Mountain Monitor analysis found that the strengthening housing market of areas such as Salt Lake City is being fueled by employment and labor gains.
Current favorable market conditions have prompted some to explore local real estate options in the Utah metropolitan area. Below are four tips to consider when searching for your affordable mortgage rate.
Build Better Credit
Prior to speaking with a lender, check your credit report for any errors, avoid late or missed payments, chip away at credit card debt, and keep applications for new credit lines low.
Start Saving for a Down Payment
Ideally a mortgage shopper will save money for their down payment. Some mortgage products are designed to require a minimum a down payment, such as for a first time home buyer. However, a larger down payment generally translates to a smaller principal loan balance combined with a lower monthly mortgage payment.
Organize Your Documents
Mortgage rates may fluctuate based on the market and a delay in the mortgage process can be caused by failing to provide sufficient paperwork, which may lead to a less favorable mortgage rate. Know what documents your lender needs to process your application, and start gathering them sooner rather than later.
Discuss Your Loan Options
Fixed rate mortgage loans have predictable monthly payments for the life of the loan. Adjustable rate mortgage loans allow a period where the initial interest rate is fixed for a certain amount of time and then the interest rate adjusts and will continue to adjust for the life of the loan. If it’s in your budget, opt for a shorter-term loan, such as a 15- or 20-year term loan and pay off your mortgage sooner.
These tips may be the start to helping you be better positioned when you decide to start looking for your affordable mortgage rate.