Utah home buying: How to shop for a mortgage

Posted by Help Now on Friday, February 12th, 2016 at 2:34pm.

Businessman signs contract behind home architectural modelConsidering buying a home in Daybreak or another Utah community? There are some things about Utah home buying you need to know before you sign the real estate purchase contract.

Although the process of Utah home buying is immensely rewarding, it can also seem a bit daunting. In this blog post, we'll walk you through the essential steps you need to take to have a smooth and enjoyable Utah home buying experience.

Step One: Get Pre-Qualified

Shop around for mortgage lenders and find out how much you are qualified to borrow—that is, how much they’re willing to lend you, based on your household income, existing debt, age, expenses and other factors. You can find online mortgage qualifier tools to get a general idea, but you should also talk with banks or other lenders in person.

This information will tell you the price range you should be targeting. Remember, though, that the purchase price is only part of the total cost. You will also have to pay closing costs, including fees charged by the mortgage lender, escrow, title insurance, your share of annual property taxes and other fees.

After you move in, your mortgage payments will not be your only costs. There are still property taxes, home owner’s insurance, utilities and maintenance—plus any upgrades or renovations you want to do.

Step Two: Find A Real Estate Agent

Most experts in Utah home buying recommend buyers work with a real estate agent who can explain all the costs and processes of buying a home and also will look out for your interests when negotiating a home purchase.

Your agent will be able to direct you to homes in your price range and will tell you about neighborhoods and features of the communities you’re looking at. Experienced in Utah home buying, agents can point out problems or issues with houses that you might miss.

An agent will ask you about your purchase strategy: Are you looking for a home to live in or to use as an investment property? If it’s going to be your home, how long do you intend to live there? Do you have children, or are you planning to have more? If it’s an investment, do you plan to flip it at a profit relatively soon, or do you plan to rent it or lease it for the long term? There are many options, and you should turn to experts for advice.

Step Three: Look Carefully At Disclosure

Look at the houses carefully when making a purchase choice. Utah home buying law requires property sellers to inform prospective buyers about any issues they know affect a property. These include structural defects, problems with heating, cooling, plumbing, sewage, electrical and other systems. Failing to disclose problems can invalidate a property sale.

Step Four: The Real Estate Purchase Contract

The purchase contract or purchasing agreement is a legally binding document between you, the buyer and the seller that details all the terms of the sale. It includes disclosure of known issues, closing costs and dates, escrow and a home inspection. You should also consult a lawyer licensed in Utah at this stage.

Step Five: Walk-Through Inspection

Before the closing date, you need to do a final walk-through inspection. Hire a licensed home inspector experienced in Utah home buying to come with you to identify any problems. Anything not disclosed before this can be a reason to walk away from the purchase or to renegotiate some of the terms of the sale.

Step Six: Title Search

Before completing the purchase, your lawyer should do a search of public records to ensure the title—the legal ownership—is free of any liens against it. These are loans on the property made to previous title-holders, or other issues that might interfere with the legal transfer of the title to you.

Step Seven: Move In!

If you’ve followed all these home buying steps, you will be able to move into your new home without any surprises.

About the Author:

Utah Dave - Neighborhood ExpertUtah Dave - Daybreak Neighboorhood Expert and Local Resident

My friends nicknamed me Utah Dave in high school because they said it didn't matter where we went in Utah, I would know how to get there and who we needed to talk to. The name sticks today as UtahDave has formed into a professional real estate network of Neighborhood Experts all across the state. I live in Daybreak with my wife and 4 amazing children. I enjoy dancing (which is how I met my wife Dawn) as well as traveling, coaching, and learning.

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