How to Qualify for a Good Mortgage Rate in Utah

Utah is a place with immense property diversity to choose from — spacious ramblers on sprawling farmland, cozy cabins nestled at the foot of the Wasatch Mountains, or simple starter homes in the safest of suburbs. The possibilities are endless.

Not only does the Beehive State offer versatile scenery, but it’s also a prime place to buy a home right now due to low housing costs, low crime rates, low cost of living, plentiful job opportunities, world-class health care, excellent educational institutions, and beautiful landscapes. For this reason, Utah has become the number-four state in America for high population growth, and houses are flying off the market.

What’s more, interest rates for a conventional 30-year fixed mortgage have reached historic lows. In order to compete in this booming housing market and get Utah’s historically low rates, you’ll need to qualify — for a mortgage loan in general, and later, for a low interest rate.

How to Qualify for a Mortgage Loan in Utah

To get approved for a mortgage loan, you need to know how much you can afford to pay for a house. This is based on your income. To calculate the monthly payment you can afford, divide your gross annual income by 28%, as this is the recommended mortgage-to-income ratio among lending experts to ensure affordable payments. Utah’s median home costs vary by city and range from $145,000 in Ogden to $295,000 in Sandy. These costs will give you an idea of where to start the house hunt.

In some cases, you will also need a down payment of 20% of the total cost of the home (or more). Having a sizable down payment will give you a competitive edge that sets you apart from other bidders in Utah’s cutthroat real estate scene.

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How to Get the Best Mortgage Rates in Utah

Over the past ten years, many people have moved to Utah for its excellent educational opportunities and economic growth, which has set the state’s real estate market on fire. As of the second month of 2021, current mortgage rates in Utah still sit near their lowest on record.

It’s important to understand how your financial circumstances impact these rates, though. If you want to qualify for the best Utah mortgage rate, you may be required to provide a larger down payment and have a higher credit score. In Utah, most people purchase their first home at 31 years old for roughly $315,951 and have an average credit score of 690.

One of the best ways to secure an ultra-low interest rate is by having a high FICO score. Keep a close eye on your credit and try to avoid opening any new lines before applying for a mortgage. Keep your zero-balance accounts open and continue making your current loan and credit card payments on time.

In order to get Utah’s best rates, you also need to be sure to compare quotes from several different lenders (at least three or four) to find the best deal. Don’t make the mistake of committing to the first lender you speak with.

Refinancing Tips for Utahns

The Utah Division of Real Estate advises that, when refinancing, you shop around for the best rates, which could end up saving you thousands of dollars in the long run. Seek out reputable lenders and refinance only when it promises a real benefit to you, such as a lower interest rate and monthly payment or the elimination of insurance premiums.

Achieve the Best Outcome With Loan Remedy

If you’re on the hunt for real estate in Utah and are seeking professional guidance, Loan Remedy can help you achieve your mortgage goals. As long-time Utah residents and mortgage experts, we have the scoop on all things Utah real estate, and we are eager to help you plant your roots in the intermountain west. Give us a call today to see how we can assist you on your journey.