A Complete Guide to Buying Your First Home in Utah
Buying a home is one of the biggest financial decisions you’ll ever make, and if you’re a first time home buyer in Utah, you may be wondering where to start. Between rising home prices, competitive offers, and mortgage requirements, the process can feel overwhelming. This step-by-step guide will walk you through everything you need to know to confidently purchase your first home in Utah.
Step 1: Assess Your Finances and Budget
Before browsing listings, take a close look at your financial situation. Lenders will want to see your income, debt-to-income ratio, and credit score.
Check your credit score: Most Utah lenders require a score of at least 620 for conventional loans, though FHA loans may accept lower scores.
Save for a down payment: While the traditional 20% down payment isn’t always required, many first time home buyers in Utah put down between 3% and 5%.
Budget for closing costs: Expect 2–5% of the home’s purchase price for fees such as inspections, title insurance, and appraisals.
Tip: Utah offers first-time home buyer programs and grants that can help with down payments and closing costs.
Step 2: Get Pre-Approved for a Mortgage
A mortgage pre-approval tells you how much you can afford and makes your offer more attractive to sellers. During pre-approval, your lender will review your financial documents, including pay stubs, tax returns, and bank statements. We can help you find the right lender to fit your situation and recommend the best loan program for you!
Popular loan options for first time home buyers in Utah include:
Conventional Loans – Good for buyers with solid credit.
FHA Loans – Lower down payment requirements.
VA Loans – For veterans and active-duty military.
USDA Loans – Great for buyers looking in rural Utah areas.
Step 3: Find a Local Utah Real Estate Agent
Working with an experienced local Realtor is one of the best decisions you can make as a first time home buyer in Utah. Our realtors have over 40 years of experience and are local to Utah! We are passionate about finding you your perfect Utah home. We will:
Help you navigate competitive markets like Salt Lake City, Utah County, and Washington County.
Connect you with inspectors, lenders, and title companies.
Negotiate on your behalf to get the best possible deal.
Step 4: Begin Your Home Search
With your pre-approval in hand, it’s time for the fun part—house hunting! When searching, consider:
Location: Proximity to work, schools, and amenities.
Future growth: Utah is one of the fastest-growing states—buying in up-and-coming areas may increase long-term value.
Home condition: Factor in costs for repairs or updates.
Tip: In competitive Utah markets, be prepared to act quickly when you find a home you love.
Step 5: Make an Offer
Once you’ve found the right property, we will help you submit a competitive offer. In Utah, it’s common to include earnest money (a deposit showing good faith) of 1–3% of the home price.
Your Realtor may recommend strategies like offering above asking price, writing a personal letter, or being flexible on closing dates to stand out in a bidding war.
Step 6: Home Inspection and Appraisal
After your offer is accepted, schedule a home inspection. This helps ensure there are no hidden issues with the property. Your lender will also order an appraisal to confirm the home is worth the purchase price.
If issues arise, your agent can negotiate repairs or credits with the seller.
Step 7: Closing on Your Utah Home
Closing is the final step where you sign paperwork, pay closing costs, and officially receive the keys. In Utah, closings typically occur at a title company.
Be sure to bring:
A valid photo ID
Certified funds for closing costs
Any documents requested by your lender
Final Thoughts
Becoming a first time home buyer in Utah may seem overwhelming, but with the right planning and with our trusted Realtors by your side, the process becomes much smoother. From budgeting and pre-approval to inspections and closing, each step brings you closer to owning your dream home in the Beehive State.
