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Getting a loan isn't as easy as it used to be. It takes a lot of ore meditated steps to get into the home of your dreams. But the good news is that if you make the right moves, you can own a gorgeous home for a fraction of what it would have cost you several years ago. So, with the mortgage industry where it is now, where do you start? The process of home ownership begins well before you even decide which house you want to buy. After all, if you can't get the loan, what good is finding the house? Your first step should be to consider your own credit worthiness. Order your free annual credit report and pick out anything that is inaccurate or flat out wrong. Since this report will often determine your fate for you, you need to know what the lenders will be looking for on it. The first vital info will be wether or bot you have any judgements or bankruptcies. If you have filed for bankruptcy in the last 2 years, you most likely will need to wait a bit before you attempt to buy a house. If this is your scenario, keep reading because there are many things that you still need to do to make sure that you qualify in the future. Open lines of credit need to be under half of the original debt. So if you have maxed out credit cards, that is going to hurt you. Work on keeping the balance at half of your credit limit. The same goes for car loans or personal loans. If you just bought a brand new car, that debt is going to count against you, and thus limit the amount of mortgage that you can qualify for, plus high debt lowers credit scores, so work on paying extra towards loans to bring the balances down. Make it a goal to have at least 3 but now more than 5 perfect lines of credit open. That means no late payments in the last year and with balances below half. Anything more than that doesn't look very good. So if you have 8 or 9 credit cards, you may want to consider getting rid of a few and just keeping the ones with the lowest interest rates. The next factor in qualifying for a loan is you savings account. You can expect to have to come up with anywhere from 3.5 to 5% cash for your down payment and closing costs. While you can sometimes get the seller to pay for your closing costs, many times they just can't, leaving you to either walk away from the deal or pay for closing costs yourself. And although FHA loans will allow the down payment to be gifted from a relative, this isn't as easy as it seems. Lenders know that 'gifts' can actually be loans and so they frequently require letters stating that he money will not be repaid and also requiring bank statements from the donor to prove where the money came from. Obviously, this gets tricky if the 'gift' isn't legit. So its to your advantage to do your best to save on your own, plus, the money is still yours if you accidentally save too much! Before you chose a loan officer, you should check out what past clients have to say about their experiences with a Utah mortgage loan. After you are convinced that the lender can get the job done, then find out what a Utah lender can do for you!
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Utah mortgage loans, Utah home loan,
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