Seven secrets of the First Time Home Buyer Programs in Utah

The first time home buyer programs in Utah are meant to allow the low to medium-income earners an ability to achieve the American dream of owning a home. Thus, if you are a first-time homebuyer and qualify for the Utah housing first-time homebuyer programs, you can achieve your dream of owning a home much faster and under less stringent requirements. In other words, being a first time home buyer comes with its perks, and these can be realized through the different home buying programs.

However, first-time homebuyers need to know certain guidelines in order to qualify for the home buying programs in Utah.  In this post, we share seven secrets for those applying for first time home buying programs.

1.  Do your Research Well

It is unfortunate that a majority of first-time homebuyers seem not to be aware of the different options when it comes to home buying programs.

The moment you have determined that it is time to start the journey of homeownership; it is necessary that you begin researching the available options. This requires that you research the different home buying programs meant to assist first-time homebuyers.

Here are the different first-time homebuyer programs you need to know about:

  • FHA Home loan
  • VA Home Loan
  • USDA home loan
  • Freddie Mae and Home Possible Loan
  • Fannie Mae HomeReady Loan
  • Conventional 97 Home loan

These home buying programs come with different requirements. However, compared with the conventional home loan, they have friendlier loan requirements. Thus, they make it easier for first time home buyers who do not qualify for the conventional home loan. Research these options to find out which option is best suited for your situation.

2.  You Still Need To check your Credit Score

Credit Score is as important when applying for the Utah FHA refinance and other Utah housing down payment assistance programs. Thus, it is important that home buyers keep checking the credit score before beginning the process of applying for either of the home buying programs.

If the credit score is not impressible, you may not qualify for certain assistance programs. Check whether there could be any errors updating your credit score and apply for corrections to be done.

3.  Explore the Down Payment and Mortgage Options

As illustrated above, the different Utah housing first time homebuyer programs come with different requirements when it comes to down payments. When evaluating the best home buyer program to pursue, be sure to explore the down payment options. Consider that some low down payment mortgage options will require you to pay the monthly insurance premium. For some borrowers, this may seem to be much costlier in the long run, and hence prefer the alternatives. To lower the monthly insurance premium, you may opt on increasing the down payment.

4.  Determine How Much You Can Afford to Repay

Just like any other loan, you are expected to repay the amount lend under the home buying programs for first-time homebuyers. Thus, before you begin the application process, be sure to verify that you will be able to repay the loan. You may want to evaluate your monthly income, and reduce the monthly expenses to ensure a smooth mortgage repayment.

5.  Compare Mortgage Lenders

The first time homebuyer programs Utah are available from different mortgage lenders. While different departments back these home buying programs, the mortgage lenders have the privilege of determining the eligibility conditions. Thus, you may find that a certain mortgage lender requires a higher credit score compared to what the other lenders are asking. It is the responsibility of the borrow to shop around and choose mortgage lenders with the most favorable terms.

6.  Save For Closing Costs

To purchase a home, you need to raise enough money to cater for the closing costs. Thus, along with the cost of mortgage application and down payment, you have to set aside a budget that will be used to pay the closing cost. Calculate the closing cost and start saving the required amounts.

7.  Apply for Mortgage Preapproval

Now that you are confident you have the required amount to pay for the closing cost, you need to apply for mortgage preapproval. The mortgage preapproval requires that you submit all the documents as required by the mortgage lenders. This is important so that they can calculate the amount they can lend to you. Moreover, you need the mortgage preapproval letter to showcase that you are able to purchase the property. This helps during the negotiation process, as home sellers tend to be attracted to the buyer who already has the mortgage preapproval letter.

Those are the important tips you need to bear in mind when it comes to applying for a mortgage. The low down payment mortgage and zero down payment mortgages are meant homebuyers who cannot pay the 20% down payment.