BUYING a Home?

A home purchase is a big decision and should not be taken lightly.

Your situation and needs are unique, and choosing the right mortgage loan program is important. Working with a Utah mortgage broker, such as Advanced Funding Home Mortgage Loans will make the loan process simple and smooth.

At Advanced Funding Home Mortgage Loans, we’re ready to find the right mortgage loan solution for your new home. Our staff of house purchase experts will help you evaluate your mortgage needs and draft a purchase plan with your situation in mind. As mortgage brokers, we will search several mortgage lenders to find the best mortgage rate available for your purchase mortgage needs.

Buying a house is a big commitment, often one of the biggest purchases you will make, so before you start shopping for a home and comparing mortgage rates, take some time and ask yourself the following questions:

• Do you have a stable source of income?

• Do you have a down payment saved?

• How long do you plan on owning the new home?

• Have you budgeted for home maintenance and improvements?

• What does the future hold in store for you, like a growing family or changing jobs?

Utah home purchase mortgages have several key elements that need to be considered when choosing a loan program. Understanding how these key pieces work will help so that we can structure a mortgage loan program that is suited for your situation.

• FHA Loans are usually the easiest to qualify for. They require a low down payment and allow for lower credit scores. Utah FHA loans are insured by the Federal Housing Administration (FHA), this protects the mortgage lender against loss if you were to default on the loan. FHA mortgages are for use with owner-occupied properties only.

• Conventional Loans are a bit more difficult to qualify for, but they can cost less over time than an FHA loan. With a Utah conventional loan, you can avoid paying private mortgage insurance (PMI) by putting a down payment of at least 20%, which can save you hundreds of dollars per month in your mortgage payment.

• VA Loans are exclusively for veterans, active-duty service members, and eligible surviving spouses. Utah VA mortgage loans offer a great benefit to buying a home with no down payment or mortgage insurance.

• Jumbo Loans are mortgages that exceed the conventional loan limit set by the Federal Housing Finance Agency (FHFA)

There are two kinds of mortgage rates – fixed rates and adjustable mortgage rates.

• Fixed rates stay the same, or fixed, for the life of your loan. A Utah fixed-rate mortgage will keep your mortgage payment consistent each month. This is a great option for homeowners who ease of mind, payment to budget around, and to lock in a low rate for the length of the loan.

• Adjustable rates mortgages (ARMs) usually stay fixed for the first 5, 7 or 10 years of the loan. Then, your rate adjusts up or down once to twice per year depending on market conditions. An adjustable rate mortgage offers the opportunity to get the lowest rate possible and is a good choice for homeowners who plan on moving or refinancing after the initial fixed rate period ends. Learn more about adjustable rate mortgages.

The mortgage loan term is the length of the loan. Most common fixed rate mortgages are either a 30 year fixed rate or 15 year fixed rate, although you can choose any term between five and 30 years with Advanced Funding's Pick Your Term Mortgage. Adjustable rate mortgages in Salt Lake City typically have a 30 year loan term.