Buying your first home is a big step, and the process makes more sense once you see it laid out. Here is where to start if you are buying for the first time in Utah.
Start with the monthly number
Before you look at homes, decide what monthly payment is comfortable for you. A mortgage payment usually includes principal, interest, property taxes and homeowners insurance, and sometimes mortgage insurance and HOA dues. A lender can show you how the price, your down payment and the interest rate change that number.
Get pre-approved
A pre-approval means a lender has looked at your income, debts, credit and savings and is prepared, subject to conditions, to lend you a certain amount. It tells you your price range and shows sellers that your offer is serious. Talk to more than one lender; rates, fees and loan programmes differ.
Look into first-time buyer programmes
Utah Housing Corporation, a state-created agency, offers loan programmes for qualifying buyers, including some with help for the down payment. Some cities and counties have their own programmes too. Each has its own rules about income, price and the home itself, so ask a lender who works with these programmes whether you qualify.
Plan for cash at closing
Beyond the down payment, you will usually need earnest money when your offer is accepted and closing costs at settlement. Earnest money is held by the title company or brokerage and is normally credited toward your purchase. Your lender will give you an estimate of closing costs early in the process.
Making an offer
In Utah, offers are written on the Real Estate Purchase Contract, or REPC. It sets the price, the earnest money, what is included, and a set of deadlines. The most important for a buyer are:
The due diligence deadline, your time to inspect the home and review everything about it.
The financing and appraisal deadline, your time to secure the loan and the appraisal.
The settlement deadline, the day you sign and the sale closes.
Inspect before you commit
Use the due diligence period well. A general home inspection, a radon test, and a sewer line camera inspection on older homes are common. If something serious turns up, you can ask the seller for repairs or a price change, or decide the home is not for you, within the terms of the contract.
Closing day
A title company handles the closing in Utah. You sign your loan documents and the deed is recorded. Then the keys are yours.
We are glad to help
Your first purchase should feel well explained at every step. If you are starting to look, contact The Luxury Agency and we will walk you through it, introduce you to lenders, and help you find the right home.
