Salt Lake City Real Estate Tips, Market Updates and

Local Happenings

By Real Estate Expert KathyOHomes

During this recession and what is called the credit crunch, the lending practices of banks have changed their business practices dramatically. In order to get a home in the Greater Salt Lake City/Park City real estate market it's important to stay abreast of how the recession will impact your ability to get a mortgage. Here's how things have changed.

Remember that the Greater Salt Lake City/Park City real estate market is a very promising market to live in. If some adjustments need to be made because of the financial circumstances of the economy, it's well worth it in the long run.

Banks have started being a little bit more cautious when it comes to lending. It is recommended that consumers now have a credit score above a 720 and the better rates are often given to those with a higher score. A credit score like that can be pretty high for a lot of people. However, just because lenders are getting a bit more strict when it comes to credit scores, doesn't mean you won't be able to get a home in Greater Salt Lake City/Park City.

If your credit score is low, go through your credit report and first confirm that the "dings" you have are truly valid.  Secondly, start working on the real issues to clean them up so you may purchase a home in the near future at a better rate.  

Another thing that has changed because of the recession is the requirement for a down payment.

Prior to the recession, many lenders were very lenient on whether or not you had to pay a down payment. Now, most lenders will require one. In fact, nearly all lenders will want borrowers to make some form of a down payment in order to qualify for a loan. The size of the down payment can vary however, borrowers should expect to put down at least 3.5% and this is on an FHA loan.

Lenders are also getting stricter on documentation. Now borrowers will be required to provide document verification that will prove both their income and assets. These requirements are quite a leap from the easy housing boom prior to the recession. During that time, lenders were eager to give home loans to just about anything that walked into the office, but not these days.

It is important to have just the right lender for two reasons. First, this is because the credit crisis has not affected all the banks in the same way. The avenues for getting credit for a home in the Greater Salt Lake City/Park City real estate market are extremely diverse. For instance, some lenders did not involve themselves in subprime lending; therefore, they are able to give out loans at a lower markup than many of their competitors. Also, there are many people in the mortgage business that either don't know what they are doing or do not have your best interest in mind.  Steer clear of unscrupulous lenders!!

You'll want to take the time you have now and save up for the down payment. Since this is the credit crisis, cash has become very important. You also don't want to be flat broke when you end up closing on the mortgage. There's something else you usually have to pay called closing costs and many people unfortunately forget about these. Getting a home in Greater Salt Lake City/Park City can be a positive experience even during a recession. You just have to know what you are up against.

Greater Salt Lake City/Park City is an incredible place to live. You don't want to miss out because of today's financial crisis. For more professional help with finding a home in Greater Salt Lake City/Park City contact me at 801-365-3150 or you can use the email address kathyo@kathyohomes.com .

There is a lot of free information available to you about buying, selling or investing in Salt Lake City, UT real estate.  For complete information about the Salt Lake City, Utah real estate market including Salt Lake City homes for sale, property values and more, please visit the most complete website dedicated to everything Salt Lake City real estate.  See for yourself, visit www.BuySaltLakeCityHomes.com

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