Buying your first house: Getting Qualified for a Utah Home Loan
A lot of people wonder if they can purchase a house. They know real estate is a good investment, and are tired of paying rent, but they don't know where to start. They want to know, " How do I buy a house?"
The first and often most challenging aspect of home buying in Utah is being able to qualify for a mortgage loan. To qualify for a home loan you need to have:
- Decent Credit - Your credit doesn't have to be great, but it can't be bad. You may be able get a bette rate with Excellent Credit.
- Confirmable Work History - Lenders like to know that you can work and will continue to have a job. They like to see a minimum of two years work experience in the same field you are now in. Your education, does count towards that work experience.
- Verifiable income that supports that you can afford to buy a house.
Notice how a sufficient down payment was not metioned. Many first time buyers don't think they can afford to purchase a house because they don't have money saved up to put down. There are several programs set up where you can buy a house with no money down. Your monthly payment will be less if you can put a down payment down, but it is not required. There are actually special government subsidized programs to help youngsters make the plunge into homeownership. Some of the best home loans for first time buyers are FHA mortgage loans.
To find out if you really can qualify for a home loan, you actually need to speak with a mortgage lender. You can get several quality lenders to contact you and give you mortgage quotes by clicking the banner below.
How to Find Houses for Sale
Once you have been prequalified for a home loan. You can begin your home search. With today's technology it is easy to browse homes for sale online. You can search Utah Homes for Sale online right here, right now.
Hire a Realtor - Many first time home buyers don't have a lot of money and want to save a few bucks by not hiring a Realtor. What they don't know is that it is FREE to hire a realtor as a buyers agent. Hiring a good Realtor will save you money, time, and protect you and your earnest money and legal rights. This link can help you select quality Utah Buyers Agents:
Planning to Buy a Home? Compare REALTORS® First. It's Fast and Free!
Utah First Time Home Buyer Programs
Utah has several programs designed specifically to help first time buyers afford home buying. Many different communities have their own organizations and community programs as well. Here are a few of the programs state wide.
Utah Housing Loan
The Utah Housing Loan is designed specifically for first time home buyers who meet certain income requirements. The loan is subsidized and is usually about half a point less than anything else you can get. It will likely be the most affordable 100% financing loan you can get. The Utah Housing Loan also allows you to use 100% financing, and get your closing costs paid for you.
There are two different Utah Housing loan priducts: FirstHome and FirstHome Plus programs offer a below-market, 30 year fixed rate mortgage loans to qualifying low and moderate income homebuyers. The loans are originated through Participating Mortgage Lenders anywhere in Utah. These loans are generally only available through banks. FirstHome interest rates change from time to time but they can save you a lot over traditional loans, especially when there is little or no down payment.
Home Start
The Home Start Program is designed to help first time buyers "save" for their down payment. It is a partnership between local lending institutions and the federal government. Locally Zions Bank and Bank of Utah participate in this program. The HSP is designed to help you accumulate funds for your downpayment and closing costs by matching every $1 you save (or are gifted) with $3, up to a maximum of $3,000 to $5,000 toward the purchase of your first home. For every year that you live in the home 1/5 of the HSP Grant is forgiven.
Utah Housing Corporation
HUD programs for first time Home Buyers in Utah
Many First time home buyers are interested in purchasing Foreclosures and HUD Homes. Foreclosures can be excellent investments for first time buyers who are willing to put in a little work to improve a beat up property. Purchasing investment properties as a first time home buyer can be tricky as some FTB home loan programs won't allow you to buy a property "as is."
HUD has special programs where only buyers looking for a primary residence are allowed to purchase the foreclosed property for the first few weeks it is listed. Scrappy first time home buyers can really take advantage of these HUD homes to get great deals. You will need the help of a Realtor to purchase any HUD house.
