A mortgage is your key to owning a home in Utah, and yet getting one is never guaranteed, even if you’ve got your finances in order.

With that in mind, here are some tips to make it more likely you’ll be approved for a home loan, as well as some missteps that you need to be aware of so you can avoid them.

Tip: Get Pre-Approved

Getting pre-approved for a mortgage is an important first step if you are considering buying a home in Utah.

Pre-approval means that your lender has reviewed your financial information and determined how much they are willing to lend you. That way, when it's time to start looking at homes, you know exactly what size loan and budget you have available.

Being pre-approved also gives sellers confidence in the potential buyer, since it shows that the necessary funds have been verified by a third party lender. It can even help speed up closing times, as some of the paperwork requirements may already be taken care of prior to making an offer on a property.

Tip: Shop Around for the Best Rates and Fees

When you are shopping around for a mortgage in Utah, it is important to compare rates and fees from a variety of lenders.

The interest rate is one of the most crucial factors when deciding on which loan best suits your needs, as this will determine how much money you pay over time. You should do this before you start researching neighborhoods, or looking into particular properties.

Additionally, look out for lender origination fees or other administrative charges that may be included in the overall cost of your loan. This can dramatically alter how much you pay to get your mortgage off the ground, and what costs you’ll incur when it’s time to renew your arrangement, or if you leave the deal early.

Make sure to do some research online, and contact multiple lenders before committing so that you can get the best deal possible.

A good tip is also to ask each lender about any potential discounts or incentives they offer, such as reduced closing costs for qualified buyers with active military service, or first-time homebuyers programs available in certain areas throughout Utah.

Tip: Know How Much Mortgage You Can Afford

Getting a sense of what’s affordable in terms of mortgage repayments is an important step when considering a home loan in Utah.

Put together a budget which covers your monthly income, expenses, and debts to establish what size loan repayment you will be able to handle.

You should also take into account any extra funds that may need to go towards other costs associated with owning a home, such as taxes or insurance.

It's important not to overextend yourself financially, as this could lead to having difficulty making payments each month, which in turn would damage your credit score over time. Using a mortgage calculator is a great way to quickly and easily see what you can afford in this context.

Mistake: Not Understanding Loan Terms or Borrowing Too Much Money

Overlooking key parts of your loan agreement, or not being able to negotiate better rates, can result in extra costs down the line.

Additionally, borrowing too much money for your home purchase could also lead to trouble if you are unable to make payments each month due to financial hardship.

Take time before signing any documents, and ask questions about fees, interest rates, repayment options and other details, so that you know what all of your legal obligations will be when taking out a mortgage in Utah.

Mistake: Neglecting to Research Your Credit Score Prior To Applying

Your credit score will be one of the primary criteria lenders use when deciding whether or not they want to offer you a loan and at what rate.

Knowing this information ahead of time can help you adjust any budgeting changes that may need to happen before submitting an application, as well as giving you insight into what parts of your credit history are holding you back right now.

It's wise to review reports from all three major credit agencies (TransUnion, Experian, Equifax) before making any decisions on which lender and mortgage package best suits your needs.

Mistake: Skipping Professional Advice When Looking for a Home Loan

Getting advice from a professional will ensure you make an informed decision on your search for a mortgage, and also help you to avoid any potential costly mistakes along the way.

A good mortgage broker can provide guidance on interest rates, repayment options, fees and other factors that may be connected with getting a mortgage in Utah, so that you are able to choose the most appropriate option available to suit your needs.

Better yet, they will also have access to exclusive deals that you might not be able to unlock on your own, so it’s worth speaking with a pro whether or not you’re quite ready to apply.