The following contribution is from another author.
If you’re considering buying a new home in Utah, then you’re probably asking yourself if you should jump in now or wait. Prices tend to rollercoaster throughout the year, so it pays to know when the best time to buy is. However, with the current trend of mortgage rates and prices, it would be better to buy now than to wait. To help make the process go more smoothly, here are ten tips to keep with you when you’re buying a house in Utah.
1) Save For A Down Payment
The most daunting part of looking at townhomes layton utah is saving enough for a down payment. With home prices constantly on the rise, it can feel like a futile effort to try and have enough and never get there. However, there are programs in place to help first-time homebuyers obtain the home of their dream. One of those programs is Utah Housing, which helps first-time buyers obtain a second mortgage to help pay for the down payment as well as closing costs. The one downside to this is that the interest rate is 2% higher than the rate of the buyer’s first mortgage, which can put a home buyer into even more debt.
Alternatively, if you’re a low-income home buyer, then you may be able to qualify for assistance from the Community Development Corporation of Utah. The bonus is that these loans are forgivable after a certain amount of time; the downside is that they are very difficult to secure.
2) Get Pre-approved For A Mortgage
Once you gain a general idea of what your down payment will be, then you should see if you can get pre-approved for a mortgage. If you can’t attain pre-approval, then there’s no reason to bother looking for a house because a seller isn’t going to take you seriously. Thankfully, it’s a pretty easy process, where you can qualify in as little as fifteen minutes so you can start the search for a new home sooner rather than later.
3) Find The Right Lender
You don’t actually have to get a mortgage with the same lender that provided you with a pre-approval. You’re free to compare all of the lenders within your area so that you can find the best rates for your budget and take out a mortgage that you can actually afford to pay off. Going with a lender that takes all these factors into account will provide you with the fastest closing time in the purchase of your new home.
4) Find A Local Real Estate Agent
There is the option to buy a new home without a realtor, but it might not be the best option. This is because Utah is a very competitive place when it comes to the housing market, so if you have an experienced real estate agent on your side, you have better chances of finding exactly what you’re looking for. A real estate agent can help you craft a suitable offer to present to the seller so that they’re more likely to take an interest in selling to you. A local agent can help you take certain considerations into account when making an offer, such as whether you should include any contingencies or if you should wait a certain amount of time to make your offer.
5) Pay Attention To Property Taxes
The property taxes in Utah are quite low; Utah homeowners typically pay a rate of 0.59 percent of the assessed value, which is considered to be one of the lowest rates in the nation. However, there are other considerations to take into account that can affect property taxes, such as school districts, water improvement, and a number of other qualifiers. Don’t be afraid to ask the seller about their past property tax bills so that you know what you’re future obligations will be.
6) Consider Dual Agency
When you decide to work with a real estate agent to help you buy a home in Utah, they may ask you to complete a form that allows them or someone within their agency to be the seller’s representative as well. This is called dual agency, which is prohibited in most states. However, Utah allows it. It can be detrimental for buyers in the sense that agents are paid based on how much the home sells for. On the other hand, dual agency can be helpful in simplifying a complex transaction so that the closing process can go smoothly.
7) Consider Climate And Weather Conditions
In addition to standard homeowners insurance, you will have to consider any additional risks that may exist in Utah, such as wildfires. Roughly 1,000 wildfires take place in Utah every year, so you should invest in a policy that provides avid protection in the event that this natural disaster ventures close to your property.
8) Get A Home Inspection And Appraisal
Once you make an offer and it has been accepted, you should do some investigative work to ensure that the property is a good investment for the future. Hire a professional home inspector to go over all the details and identify any important concerns, such as mold, electrical issues, or past leaking problems.
9) Have A Final Walkthrough
Once your offer has been accepted, you should take another walkthrough one last time to ensure that there isn’t anything that you’ve missed. You want to know that the home is in the condition that you’ve been promised.
10) Consider Closing Costs
The seller usually covers the cost of the title insurance, but you’ll still have your own fees and expenses to pay, including the separate title policy for your lender, an appraisal fee, lender fees, and other assorted costs.
If Utah is where you want to be and you’re struggling to find the perfect home, don’t be afraid to contact a reliable real estate agent in the area to help you get started. They could end up finding you the perfect home you’ve been looking for your entire life.
