Do You Need a Mortgage on a Home in Pleasant Grove Utah?
Buying real estate in Pleasant Grove Utah is much easier when you are
pre-qualified for a loan. Fortunately, there are a variety of lenders
and financing options to choose from in Utah County. Do you need a
lender to get a mortgage on a home in Pleasant Grove Utah?
Mortage Brokers in Pleasant Grove, Utah
A lender works as a middle-person. The lender is responsible
for finding lenders for borrowers or borrowers for lenders. They
are the people you need to talk to if you need a mortgage on a home in
Pleasant Grove Utah. Mortgage brokers usually have many different
working relationships with many different lenders. It
is important to ask about the actual services being offered by a
lender because these will greatly vary from broker to broker
since they usually work for different lenders. They will also have
various prices, interest rates and terms. Get a good faith estimate from
any mortgage broker you are considering hiring.
Private Individuals
Any private individual with enough money saved can be a source for a
real estate loan. Of course, a private individual will have to comply with all of
the necessary laws regarding such transactions which usually include
such things as interest rates, service fees, and all additional charges.
A private lender will have to provide the disclosures that are
legally required for such a transaction. A private loan on a home
is very uncommon in Utah County. I have seen some people loan
money at a higher interest rate for a short duration. This is a
little like a bridge loan for a few months or a few years. I have also seen
some wealthier family members loan money on homes for their relatives.
Credit Unions in Utah County
Credit Unions in Utah County have some advantages over the other
lending institutions such as never having to pay federal taxes and other
tax related expenses. This allows credit unions to offer very
attractive interest rates and loan terms that are better than the other
loan sources. The catch though is that you have to become a member
of the credit union before you can get a loan with a credit union. Every
credit union follows a unique set of qualifications required for
membership. We have many good credit unions in Utah County. I have
seen many buyers get loans on homes thru credit unions over the years.
Online Internet Lenders
You can also find internet loan sources if you need a mortgage on a
home in Pleasant Grove Utah. You will have to be extra diligent if
this is the option you choose though because there are many scams
online. Furthermore, the process of acquiring loans from such
sources is usually more stringent than the other available options. I
would steer clear of online internet lenders and work with a local
lender that you can meet face to face. I have closes several loans with
online internet lenders. Some have worked out fine while a higher
percentage have been a nightmare.
If you still have trouble figuring out how to finance a home in
Pleasant Grove Utah, you can call Team Teasdale Realty to ask for their
professional opinion on how to finance that new home you’re planning to
buy. Paul Teasdale has been selling homes in Pleasant Grove since 1995
and has a degree in finance from Brigham Young University.
Saving for a Down Payment on a Home
One of the biggest problems in buying a new home in Pleasant Grove,
Utah is finding the down payment necessary to make the purchase.
In the good old days Banks used to require as much as 50% of the total
price as down payment before they would lend the rest of the money as a
mortgage. Can you imaging if that rule still applied today. It
would be very difficult to buy or sell a home. Unfortunately, many
buyers use their home as a equity ATM machine which drives them more
into debt.
Today, the down payment required by banks in Pleasant Grove is closer
to around 3% but that is still a big amount of money that a lot of
people struggle to come up with some cash. Your average person does not
save money. Are you saving for a down payment on a home in Pleasant
Grove, Utah?
If you are buying an investment property in Pleasant Grove the banks
will require around 20%. If you are buying land and not getting a
construction loan at the same time you will need around 50% down unless
you wrap it into a construction loan. If you are planning to buy a
home in Pleasant Grove Utah, here are some tips you can use to help you
when saving for a Down Payment on a Home in Pleasant Grove, Utah.
Save your extra money for a home in Pleasant Grove, Utah
Saving is the first thing you can do to come up with the money you
need to buy your new home in Pleasant Grove, UT. The easiest way
to do this is to decide how much of your total income you are willing to
save for your home and stash that away regularly every payday or every
month. For example, if you decide you could save $500 dollars a
month, you could save $6,000 dollars a year. Place this money in a
separate bank account and do not touch it. Build a cash reserve before
shopping for a home.
Ask the Seller to Pay Your Closing Costs
Home sellers in Pleasant Grove, Utah can be very helpful to home
buyers. This is especially true if you come to terms with the
seller and buy it as his asking price. Some may pay closing costs
while some may pay for repairs. We find most sellers will pay the
buyers closing costs in Utah County. If a seller pays your closing costs
this will decrease the amount of money you will need to bring to closing
when buying a home in Pleasant Grove, Utah.
Coming up with a down payment may be hard. Once you have a down
payment start shopping for a home. If you are planning to
buy a home in Pleasant Grove Utah,
consider calling Team Teasdale Realty. Paul Teasdale can help you find a
good mortgage broker that can help you get a loan.
