Utah is home to some of the most technologically driven and innovation-based companies in the world. The robust business scene is one of the reasons that people choose to move to this prosperous state. Aside from the abundance of employment opportunities, the relatively low cost of living makes Utah an attractive place to settle down and raise a family.
For first-time home buyers, the work doesn’t end after finding the perfect house. The next step is to choose a firm from among the credible mortgage companies in Utah to provide financing. There are a lot of things that should be considered before taking out a loan from a mortgage company. The decision should be based on the type of loans that the institutions offer. The following are the three most common types of loans offered by mortgage companies.
Federally insured loans are backed by a federal agency. Examples of such loans are Federal Housing Administration (FHA) loans and Department of Veterans Affairs (VA) loans. Insured mortgages require lower down payments. However, they can be more restrictive when it comes to what types of homes qualify for a loan.
Conventional mortgages are loans that are not government-insured. Typically, these loans have a higher interest rate compared with government-insured ones. Down payments for this type of loan are usually 20 percent of the cost of the home.
Compared with government-insured loans, conventional mortgages offer more flexible terms. There are little to no restrictions about the type and cost of houses that qualify for a loan. In addition, such loans are also processed more quickly because they don’t need the approval of government agencies.
Insured Conventional Loans
Some conventional loans can also be insured with a private mortgage insurance policy. This is typical of loans that ask for down payments that are less than 20 percent. Insured conventional loans are very similar to government-insured loans. The only difference is that the insurer is private.
You can choose mortgage lenders in Utah that do not only act as a lender. They should also be good financial planners like the Altius Mortgage Group. These companies provide quality service by analyzing the client’s total financial situation, and finding a mortgage that will help him meet his goals.