Has the mortgage process left your brain feeling fuzzy? To help clear out the fuzz around mortgages, this mortgage company in Salt Lake City has simplified the process to eight easy steps. 

Learn these, and you can focus less on your mortgage and more on your dream home!

Fill out a 1003 mortgage application (form). Your loan officer looks at your:

Your loan officer runs your credit report with three major credit bureaus using the middle score and throwing out the low and high score.

Your loan officer will review with you all available loan programs and help you decide what is best for your situation. Programs include conventional, the Federal Housing Administration, Tennessee Housing Development Agency, Veterans Affairs, US Department of Agriculture, and Jumbo Loans.

Say you want to buy a home and need a loan for 150,000 USD. You're receiving your credit report back, and it is 680. After reviewing your options, you've decided to go with an FHA loan program and a 30-year fixed rate. Your PAR rate is 3.75%, which would make your monthly payment (which is principal + interest)  694.67 USD. Sometimes it could be better for you to increase your PAR rate.

For example, you can increase your par rate from 3.75% to 4% to make your monthly payments 716.12 USD. 

You'll be paying an additional 21.45 USD a month, but you're trading that extra cost to receive 1500 USD to put towards closing costs. Why do that?

It takes five years and ten months to recoup one point. If you think you might move in under six years, it makes financial sense to increase your rate use to 1500 toward closing and save your money for expenses like a lawn mower or furniture.

However, as you continue to pay the high monthly payment past the five years and ten months, it's not quite as good a deal.

Over the life of the loan, the higher rate will cost an additional seven thousand seven hundred and twenty-two dollars in interest. But remember as of now the interest is tax deductible. This process can be reversed as well—you can pay money upfront to decrease your rate. This reduces your monthly payment. Once you find your home and work through your scenario by plugging in your actual numbers, you can move on to the next step.

You will need to provide identification bank statements paycheck stubs w-2's tax returns and more depending on the loan situation.

Processors will verify your documentation.

Underwriters may seem like wizards, but indeed they just verify that your loan meets all loan program guidelines and may ask for additional documentation as needed. 

This takes place at a title company or attorney's office. You will sign closing documents. These include the notes for the buyer’s promise to pay back the loan and the deed of trust confirming that if the buyer does not follow through on the terms of the loan, the lender can foreclose.

If you're looking into buying a house in Utah, consider CLG. Community Lending Group is a mortgage company from Utah whose mission is to fulfill the American dream. Get your dream house today.