At Wasatch Peaks, we’re proud to be your top source for a fantastic mortgage loan in Utah. Our loan professionals can help you get fantastic mortgage rates for whatever kind of home loan you’re looking for, all while helping walk you through every step of the process.
A mortgage is one of the largest financial commitments you’ll make in your life, and many people are rightfully concerned about whether they can afford the range they’re looking at. There are a few telltale signs that you might be in over your head – here are a few red flags to look out for that might signal you should consider a less expensive option.
No Money Down
The down payment has received an unfair reputation in the mortgage world over recent years – the assumption that every buyer must have 20 percent down to even dream of getting a mortgage is outdated and untrue. But even with programs available to get lower down payment amounts, having nothing on hand to put down is a bad sign.
If you have no money to put down, chances are you’ll be paying a fairly exorbitant monthly payment sum. This is because you’ve put no money toward equity in your home to begin with, putting you at risk for future issues.
Borrowing From Savings
Are you dipping into your retirement savings or other funds to cover down payments or other mortgage-related fees? This is a bad sign, and one that shows you might need more time before purchasing this home.
Limited Emergency Funds
With any mortgage and home purchase, you need to have some emergency funds in reserve. If you don’t, simple maintenance areas like a leaking roof or a damaged water heater may put you into debt and cause issues. If you don’t have at least three months’ worth of expenses available in an emergency account, you should consider whether the time is right for this mortgage.
Feelings of Doubt
Finally, sometimes you just have to go with your gut. We’re not talking about the normal jitters that come with a big purchase – these are understandable and will likely pass. If they don’t, though, and if you can’t shake the feeling that this investment is stretching you too thin, take some time to reconsider it before committing.
For more on signs that a mortgage might be too much for you, or to learn about any of our home loan services, speak to the pros at Wasatch Peaks today.