First-Time Home Buyer Guide: Buying Your First Home in Salt Lake City, Utah

Thinking About Buying Your First Home?

Buying your first home is exciting. It can also feel a little overwhelming.

How much can you afford? How much money do you need for a down payment? What is a mortgage pre-approval? What happens when you find a house you love? And what exactly happens between making an offer and getting the keys?

If you're a first-time home buyer in Salt Lake City, West Jordan, South Jordan or anywhere in Salt Lake County, you don't have to know all the answers before you get started.

That's what I'm here for.

My job isn't to pressure you into buying a house. It's to help you understand the process, answer your questions and give you the information you need to make a decision that's right for you.

What Does a First-Time Home Buyer Need to Know?

The home-buying process can seem complicated, but it really comes down to a series of steps:

Understand your finances
Determine what you can comfortably afford
Talk with a lender and get pre-approved
Find a Realtor you trust
Start looking at homes
Make an offer
Complete inspections and other due diligence
Finalize your mortgage
Close on your home
Get the keys!

Let's break it down.

Step 1: Know Your Budget

Before you start scrolling through homes for sale, figure out what you're comfortable spending.

And I don't mean just asking a lender, "How much will you approve me for?"

Think about what monthly payment actually fits your life.

Your home-buying budget may include:

Mortgage principal and interest
Property taxes
Homeowners insurance
HOA fees
Mortgage insurance, if applicable
Utilities
Maintenance and repairs
Closing costs
Moving expenses

A lender can help you understand what you may qualify for, but your maximum approval isn't necessarily your ideal budget.

How Much Money Do I Need to Buy My First Home?

This is one of the biggest questions first-time buyers ask.

You may not need a 20% down payment.

Depending on your situation and the loan program you qualify for, there may be options with lower down-payment requirements. There may also be down payment assistance programs or other resources available to eligible Utah home buyers.

Talk with a qualified mortgage lender about your individual situation before assuming you need a certain amount of money saved.

You'll also want to plan for closing costs and other expenses associated with purchasing a home.

Step 2: Get Pre-Approved for a Mortgage

Getting pre-approved before you seriously shop for a home is a smart move.

A mortgage pre-approval gives you a better understanding of your potential borrowing power and helps you know what price range to consider.

It also shows sellers that you've taken steps toward obtaining financing when you're ready to make an offer.

Your lender can explain:

Mortgage programs
Interest rates
Down-payment requirements
Estimated monthly payment
Closing costs
Credit requirements
Potential assistance programs

My advice? Ask questions. Lots of them.

If you don't understand something your lender tells you, ask them to explain it.

Step 3: Find a First-Time Home Buyer Realtor

You don't need to become a real estate expert before buying your first home.

That's one of the reasons having an experienced Realtor can be so valuable.

I can help you understand what you're looking at, point out things you may not have considered and walk you through each step.

I'll help you understand:

What homes are actually selling for
Whether a home appears reasonably priced
Neighborhood differences
Property disclosures
HOA information
Offer terms
Earnest money
Inspections
Appraisals
Negotiations
Closing

And if you have a question, ask me.

There really isn't a silly question when you're buying your first home.

Step 4: Figure Out Where You Want to Live

Buying your first home isn't just about the house.

It's about where you live.

Think about your commute, lifestyle and what you want your day-to-day life to look like.

For buyers in the Salt Lake Valley, that could mean comparing communities such as:

Salt Lake City • West Jordan • South Jordan • Murray • Sandy • Herriman • Taylorsville • Midvale • Riverton and surrounding communities

You may discover that the neighborhood you originally had in mind isn't actually the best fit for your budget or lifestyle.

That's okay.

Part of my job is helping you explore your options.

Step 5: Make Your Must-Have List

Before you start looking at houses, make three lists:

Must Have

Things you truly need.

Maybe that's:

Three bedrooms
Two bathrooms
Garage
Yard
Home office
Specific location

Would Be Nice

Things you'd love, but could live without.

Maybe that's:

Updated kitchen
Finished basement
Large primary bedroom
Fireplace
Mountain views

Deal Breakers

Things that would make you say, "Nope."

Knowing these things ahead of time can make your home search much easier.

And remember — your first home doesn't have to be your forever home.

Step 6: Find a Home and Make an Offer

You've found it.

The house you can actually picture yourself living in.

Now comes the offer.

Before deciding what to offer, I'll help you look at the property's current competition, recent comparable sales and overall market conditions.

We'll also look at the terms of the offer.

Sometimes the highest price isn't the only thing that matters to a seller.

Depending on the situation, factors such as financing, earnest money, inspection terms, closing date and other contingencies can all play a role.

My goal is to help you make an informed and competitive offer — not simply tell you what you should do.

Step 7: Inspection, Appraisal and Due Diligence

Once your offer is accepted, you're under contract — but you're not done yet.

This is when you'll work through important parts of the transaction.

Home Inspection

A professional home inspection can help you understand the condition of the property.

No house is perfect.

The purpose of an inspection is to identify potential problems so you can make informed decisions.

Appraisal

If you're financing the home, your lender may require an appraisal.

The appraisal helps the lender evaluate the property's value for lending purposes.

Finalize Your Financing

Stay in close contact with your lender and provide requested documentation promptly.

Your lender will guide you through the remaining mortgage process.

Step 8: Close on Your First Home

As you get closer to closing, you'll review your final documents and costs.

Your closing costs can include several different expenses depending on your loan and transaction.

Make sure you understand what you're paying and ask questions if something doesn't make sense.

Then comes the moment you've been waiting for.

You sign.

The transaction is completed.

And you get the keys.

First-Time Home Buyer Programs in Utah

One thing I always encourage first-time buyers to do is ask about available home-buying assistance.

Depending on your circumstances, you may qualify for programs designed to help with things such as down payment or closing costs.

Programs, requirements and availability can change, so it's important to speak with a qualified Utah mortgage lender or the appropriate housing agency for current information.

Don't assume you don't qualify simply because you haven't saved a huge down payment.

Ask.

You might have more options than you realize.

Common First-Time Home Buyer Questions

What credit score do I need to buy a house?

There isn't one universal credit score requirement for every mortgage program. Different loan programs and lenders have different requirements.

A lender can review your credit and financial situation and explain which options may be available to you.

Do I need 20% down to buy a home?

No. A 20% down payment is not universally required.

There are mortgage programs with lower down-payment requirements, depending on your circumstances.

Should I get pre-approved before looking at homes?

Yes. I strongly recommend talking with a lender and getting pre-approved before seriously shopping.

It helps you understand your budget and puts you in a better position when you're ready to make an offer.

How much should I spend on my first home?

That's different for everyone.

I don't want you buying the most expensive house a lender says you can afford. I want you to understand the complete monthly cost and choose a home that fits comfortably into your life.

Is buying better than renting?

That's a personal decision.

Buying can be a great long-term choice for some people, while renting may make more sense for others.

The right answer depends on your finances, plans, timeline and the local market.

Buying Your First Home Doesn't Have to Be Scary

You don't have to know everything.

You don't have to have the perfect credit score.

You don't necessarily need a 20% down payment.

And you definitely don't need to have the entire process figured out before you call a Realtor.

Start with a conversation.

I'll help you understand where you are now, what your options may be and what your next step could look like.

Whether you're looking for your first condo in Salt Lake City, a townhome in South Jordan, or your first house in West Jordan or another Salt Lake County community, I'm here to help you navigate the process without the pressure.

Ready to Start?

If you're thinking about buying your first home in the Salt Lake Valley, let's talk.

You don't have to be ready to buy tomorrow.

Sometimes the first step is simply figuring out what's possible.

Nancy Bergman | Your Neighborhood Realtor
Salt Lake City • West Jordan • South Jordan • Salt Lake County