Vermont is one of the most beautiful states in the country. The sunsets are stunning, the mountains are gorgeous, and the scenery is incredible. In Vermont, you can enjoy the thrill of jumping off a cliff, or you can experience the exhilaration of skiing down the mountain. The state is a wonderful place to live. In fact, many “lists” have it listed as one of the best places to live in the United States. When you are searching for a home, you can find a home in the lush forest, farm valleys, mountain villages, or lakeside towns. There is a home available that will be exactly what you want. You need to research the housing market in Vermont before you buy a new home, so you will be informed on how the process works.

Vermont Mortgage Rates

According to http://www.bestplaces.net/state/vermont, the median price of a home in Vermont stands at $210,900. This is above the nation’s average. The cost of living is also higher in Vermont. It is a good time to buy a home in the state as home appreciation has increased 5.1% within the last year. https://www.zillow.com/mortgage-rates/vt/ states that the mortgage rate for a 30-year fixed loan in Vermont stands at 4.09%, and the rate for a 15-year fixed rate mortgage is 3.30%. You can also go with a 20-year fixed loan at a rate of 3.68%. Adjustable rate mortgages in Vermont are also available. The 7/1 ARM is 3.11%, and the 5/1 ARM is 3.27%. For a 3/1 ARM, the rate is 3.83%.

Vermont Housing Outlook

Within the past year, the number of homes for sale decreased 13%, according to http://www.vermontrealtors.com/realtor-benefits/reports/. However, home sales increased 2.8%. The median sales price rose 9.3%. The Presidential election of 2016 impacted the housing market in Vermont. However, they got back on track after the election was completed. Experts say that the housing outlook for the next year is promising.

Applying for a Mortgage in Vermont

One of the first things you want to do when applying for a mortgage is get pre-qualified. After you research lenders and find a lender, the lender will want to gather information from you about your income and debts. The lender will then determine how much you can pay. Lenders will mainly look at your ability to repay the loan. Lenders will look at your employment information and how much money you make. When applying for the loan, you will need to provide certain information about yourself, such as your name, social security number, and address of the home you are planning to buy. You will also need to estimate the value of the home, and you will need to indicate how much you wish to borrow. After you apply, the lender will send you a loan estimate. This document informs you of important information regarding the loan. Most lenders give it to you within 3 days of your loan application. The document will include the interest rate, monthly payment, and total closing cost. You will also be given information about the taxes and insurance cost. This estimate does not mean you have been approved. It will show you the terms if you decide to proceed. If you wish to proceed, you need to inform the lender that you wish to move forward with the application. The loan will be processed and a credit report will be ordered, so the lender can check your credit. Lenders will give you a list of documents that you need to provide. Once everything is set, your loan will be sent to underwriting for final approval. Once your loan is approved, you will receive a closing disclosure that includes the terms of the loan. You can then set up a time to close on the loan.

Types of Loans in Vermont

  • Fixed loan: The amount stays the same for the term of the loan
  • Adjustable loan: Your rate will fluctuate after an initial period
  • VA loan: Government loan available to military or retired military
  • FHA loan: Government-backed loan excellent for first-time home buyers
  • USDA loan: Given by the US Department of Agriculture for people with lower incomes
  • Conventional loan: Not insured by the federal government