First-time Homebuyers Resource!

Frequently Asked Questions

Frequently Asked Questions

How do I apply for a loan?

In order to receive a home loan from a lender, you first need to pre-qualify for a loan. This will help lenders determine what kind of mortgage you can afford. Factors that play into this will be your annual income, current debt, total assets, and your credit score. We can help you get pre-qualified for a loan and take you through the entire home buying process! Fill out this free, no-obligation pre-qualification form. and we can get started on the home-buying process!

What kind of credit do I need to qualify for a loan?

Though a good credit score helps you het lower interest rates on a home loan, it is not a necessity when applying for a loan. There are many federal loan programs and home buying grants available to help you get the best possible rates. Our specialty is taking you from Step One: Getting Pre-Qualified to moving into the home of your dreams. Give Brent a call today or send us a message on the Contact page and we can help you find you credit score and even help you improve your score so you can get better interest rates on your home loan.

How do I negotiate interest rates?

Your negotiating power is determined by many factors, including the type of loan, the type of home, your credit score and your current debt-to-income ratio. In addition, how much you pay in closing costs can have an effect on the interest rate as well. As your realtor, we will negotiate all interest rates and fees associated with closing on the sale of a house, so you can rest assured you're getting the best deal possible.

Where do I find my credit score?

You can usually get a free credit report once a year from your bank, and there are many websites that allow you to check on your credit score for free. There are three credit reporting agencies:

  • Equifax
  • Experian
  • TransUnion

You can also visit our Credit Report page to get free scores from all three credit reporting agencies.

 

What are the closing fees associated with buying a home?

Your lender will help you find an appraiser, set up the appointment, and go over what the appraiser says about the property. The appraiser's job is to look at different aspects of the property to determine it's current value. The appraiser will use the following factors to determine the home's value:

  • Structure
  • Interior
  • Amenities
  • Upgrades
  • Front and Back Yards
  • Neighborhood
  • Comparable homes in your neighborhood

 

What are the different types of mortgage loans available?

There are many different types of home loans, grants, and tax credits available to homebuyers to help them purchase a house. You can find more information about the types of mortgage loans available on our Loans page. You can also find other useful websites under our Resources tab above. A few different types of mortgages available include:

  • Fixed-Rate Mortgages
  • Adjustable Rate Mortgages
  • FHA Loans
  • VA Loans
  • USDA Loans

 

What are the closing fees associated with buying a home?

As your realtor, we help you negotiate all closing costs associated with buying a home in Utah so that you don't have to pay fees out-of-pocket. Closing costs typically associated with buying a home include:

  • Lender fees include charges for loan processing, underwriting, preparation and establishing an escrow account.
  • Third-party fees include charges for insurance, title search, and other inspections such as termites.
  • Government fees include deed recording and state & local mortgage taxes.
  • Escrow and interest fees include homeowner's insurance, loan interest, real estate taxes, and occasionally private mortgage insurance.

 

Who pays the real estate agent fees?

The seller of the home is typically the one who is responsible for paying the broker fees. Selling fees will typically include:

  • Title insurance fees depend on the sales price of the home.
  • Broker's commission is a full-service fee and will cost anywhere between 5% to 7%.
  • Local property transfer tax, county transfer tax, state transfer tax, and state capital gains tax are the charges that you pay for selling your home. Credit to the buyer of unpaid real estate taxes for the prior or current year are variable and depend on when you close and when your taxes are due.
  • FHA fees and costs are all fees are now negotiable between an FHA buyer and seller.
  • Home inspections fees are in some circumstances paid for by the seller and include pest, radon and other inspections.
  • Miscellaneous fees can accrue from correcting problems noticed during the home inspection.

If you let Brent help you upgrade into a new home, he'll waive the Broker's commission and sell your house for free!

 

What about homeowner's insurance?

When you go through the process of signing a mortgage for your new home, the lender will require that you purchase homeowner's insurance or hazard insurance, which protects you and the lender from loss in the event that the house is damaged or destroyed by fire or storm. Most home buyers purchase a homeowner's package of insurance that includes:

  • Personal liability insurance - protects you in the event that you are sued by someone who is injured on your property or injured by a member of your family, except in an automobile accident
  • Coverage against fire, theft, and certain weather-related hazards - various options are available

You will want to get quotes from several companies as to what types of coverage your homeowner's policy should include and how much coverage you need. Generally the lender will require you to get only minimal coverage up to the "replacement value" of the house.

 

What is a HUD home?

HUD is The United States Department of Housing and Urban Development. A HUD home is a 1-to-4 unit residential property acquired by the HUD as a result of a foreclosure action on an FHA-insured mortgage. When a homeowner defaults on their loan or fails to make their monthly payments, the lender will foreclose on the home. Since the United States government insures FHA loans, HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

Not finding the information you need? Ask Brent any questions you have on the Contact Page.

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