At Direct Mortgage, we specialize in providing you with personalized service and direct rates across the state of Utah. With a variety of home equity and financing loans available to you, our dedicated professionals are ready to assist and help you meet your home mortgage needs.
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30 Yr Fixed Conforming
15 Yr Fixed Conforming
5/1 Yr ARM
Utah Housing was established by the Utah Legislature in 1975 to provide decent, safe, and sanitary housing for low and moderate income families of the state. There are 4 loan options within Utah Housing:
Learn about the Utah Housing Corporation Loan Program Guidelines and easily compare the four different loan programs using this guide.
From start to finish, the Utah home loan and mortgage approval process takes anywhere from six to eight weeks, and consists of seven steps:
1
Loan officer receives loan application, runs credit, and receives AUS approval to help borrowers determine their home budget and up to what purchase price to offer
2
Loan officer collects and reviews income, asset, and any other necessary loan documents to verify the information disclosed for pre-qualification
3
Borrowers have a contract to purchase a new home and are ready to start the loan process
4
Loan processors work with borrowers, loan officer, realtors, title, 3rd parties, etc. to gather all the details and documentation needed to prepare the loan package to be reviewed by underwriting
5
Underwriters review and analyze the loan package to determine if the borrower and property satisfy the lending requirements for the loan financing. Once the loan is fully approved the underwriter will clear the loan for closing*
6
The closing department works with the title company to balance the final figures and prepare the final closing documents for signing
7
The funding department receives from the title company the signed final closing documents and reviews the loan to give approval to the title company disburse funds and record the new loan with the county
*Conditional underwriting approval: Underwriter has reviewed and approved a loan for financing, but still needs additional information and documentation before issuing the final approval and clear for closing
Our Utah home loan team is dedicated to helping you find your ideal home, at the lowest rates.
Karen Poch
I highly recommend Jesse Clark at Direct Mortgage. He gave us the best rate up front without having to play any games. He was willing to go the extra mile for us and went out of his way to make sure he met the deadlines we had. He saved us a considerable amount of money with a low interest rate and low loan costs. He was prompt, professional and honorable in his dealings with us. He is my go to loan guy now and the first name I will give a friend who is looking for a great mortgage broker.
Brody Holmes
Working with Jesse Clark and his team was so easy! We received the best service and rate and the process was flawless. I highly recommend working with Direct Mortgage for any of your financing needs!
Alicia Palmer
Ashley Pacheco with Direct Mortgage is seriously EXCEPTIONAL. She was so easy to get a hold of, answered all of my questions quickly and thoroughly, and is an absolutely amazing human being. I felt so lucky to have had the chance to work with her and her team (special shoutout to Victoria as well). AND DID I MENTION THAT WE WERE ABLE TO CLOSE IN ABOUT 15 DAYS FROM THE TIME MY OFFER WAS ACCEPTED? I was seriously amazed. I would highly highly highly highly recommend Direct Mortgage, and Ashley and her team in particular.
Alan Seegrist
Jesse did a great job helping me with a mortgage. He found a great rate and made the process very easy. The whole process went quickly and smoothly. He is awesome!
Are you meeting with a lender to discuss buying a home? To help you out, here are the answers to some frequently asked questions.
Your home loan largely depends on a variety of factors, including your annual income, the length of your mortgage term, and current mortgage interest rates. Lenders will also consider the costs of property taxes, homeowners insurance, and even homeowner association fees.
Lenders want to loan you money, meaning you may qualify for more than you expect. Therefore, you shouldn’t be as concerned about how much of a loan you can qualify for and more about how expensive of a home you can afford.
Your monthly payment depends on how much you put on a down payment, the total cost of the house, and the current interest rate. Then you would divide that over the entire length of your loan term.
For example, let’s say you paid $50,000 down for a home price of $500,000 with an interest rate of 6%. If you signed up for a loan duration of 30 years, that would put your monthly payment somewhere around $2,698. You will also need to account for any applicable property taxes, homeowners insurance, and HOA fees.
You won’t always need an appraisal. Homes under $400,000 may be exempt from appraisal requirements, according to a 2019 rule from the OCC, FDIC, and the Federal Reserve.
However, just because an appraisal isn’t always required does not necessarily mean you should avoid one given the opportunity. Home appraisals are meant to confirm that the home seller has not overpriced the home. So while there is an upfront cost to an appraisal, that cost is meant to protect you, the buyer.
Your mortgage rate, which is the annual interest you’ll owe, is based on a percentage of your loan’s total balance. For example, if you have a 5% interest on $300,000, you would pay an annual interest of $15,000 (assuming you have a fixed mortgage rate).
Home buyers can choose either fixed-rate or adjustable-rate mortgage loans. Fixed-rate mortgages will keep your interest rate consistent throughout your mortgage. Adjustable-rate will fluctuate as the market changes, meaning it may rise or fall as you pay off your home.
Several factors determine if mortgage rates will increase or decrease, including:
Your cash to close encompasses all of the money you need on closing day. This includes mortgage down payments, closing costs, mortgage points, lender credits, and any earnest money you offer.
A basic formula for calculating your cash to close is as follows:
Direct Mortgage offers both fixed-rate and adjustable-rate mortgages. Talk with your lender to determine which loan type will best suit your purchasing plan.
Your lender will apply your interest to the total unpaid portion of your home loan. You are responsible for paying at least the interest in each compounding period. If you fail to pay your interest, the outstanding debt will increase (even if you made payments otherwise).
Rates are how lenders stay in business. Without rates, there would be no way a lender could profit from lending their money to you.
PMI stands for private mortgage insurance. It is a premium automatically added to the monthly total of your mortgage payment. This insurance protects the lender in case you ever stop making your mortgage payments.
Most lenders will require you to pay for PMI if your down payment is less than 20% of the home’s total cost. If you make a down payment that’s more than 20% of the total cost, you may avoid having to pay PMI.
According to Ellie Mae, it takes an average of 58 days to close on a house. This time begins after your purchase offer is accepted. But rest assured, this is just the average. You may be able to close on your house in a much shorter time. Talk with your lender to see what options are available to close sooner.
Lenders of Direct Mortgage may sell your loan, but this is no cause for concern. Selling a loan simply means the lender sells the rights to service the loan to another lender. All rates will stay the same. Just the address of your loan payment destination will change.
Your servicer is essentially the entity that sends you the bill for your mortgage payment. It is not always who owns your loan. If you’ve already made payments, you can find a phone number for your mortgage servicer on your monthly mortgage statement.
If you’ve completed a loan through Direct Mortgage, you can make your first payment on our homepage. Simply log into your account, and you will be directed to a payment portal.
Closing costs are different from your cash to close. These include appraisal, attorney, insurance, and loan processing fees.
As a general rule of thumb, most closing costs will range from 3-6% of a home’s purchase price.
The minimum down payment requirement varies depending on the type of loan you apply for. Most conventional mortgages may only require a 3% down payment. If you apply for an FHA loan, you will have to pay a 3.5% down payment. It’s even possible to pay 0% down through a VA loan, which is offered to current and veteran U.S. military service members.
If your appraisal of a home comes back lower than expected, your lender will likely not be able to offer you a loan that covers the remaining balance of the home’s asking price. If this happens, you have a few options:
Most conventional loans will require you to have a credit score of 620 to 660 or higher. If you’re applying for an FHA loan, you may only need a credit score of 500.
The minimum credit score also depends on how much you pay in a down payment. The more you pay upfront, the lower the minimum credit score will be.
Your Utah home buying experience doesn’t have to be stressful. We’re here with additional resources to help.
We are dedicated to helping home buyers like you find the lowest interest rate, as quickly as possible, so you can make your dreams of home ownership a reality.
Create an account today to be contacted by a loan officer near you.
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