Buyer and Financing FAQs for Salt Lake Valley Home Buyers

What is the home buying process from start to finish?
Get pre-approved, sign a buyer agreement, tour homes, write an offer, then complete inspections, appraisal and loan approval during the contract period, and close. I’ll give you the key dates for each step so nothing sneaks up on you.

 

How long does it take to buy a home?
Finding the right home varies. Once your offer is accepted, closing typically takes 30 to 40 days in my experience, depending on your loan and the contract dates.

 

How do I choose the right area?
Start with your budget, commute, HOA preferences, lot size and the features you need. I’ll show you what each of those costs in different cities. For school boundaries, check directly with the school district, since boundaries can change.

 

What should I do if I’m not sure I’m ready to buy yet?
Start with a no-pressure call and a talk with a lender. You’ll learn what you qualify for and what to work on. Buying in six months or a year is a perfectly good plan.

How much do I need for a down payment?
Less than most people think. Many conventional loans start at 3% down, FHA at 3.5%, and VA and USDA loans can be 0% for those who qualify. Your lender can tell you which fits you.

 

What’s the difference between pre-qualification and pre-approval?
Pre-qualification is a quick estimate based on what you tell a lender. Pre-approval means the lender has checked your credit, income and assets. Sellers take pre-approved offers much more seriously.

 

How does my credit score affect my mortgage rate?
Higher scores usually get lower rates and better terms, which can save you a lot over the life of the loan. If your score needs work, a lender can show you what to fix first.

 

Can I buy a home if I’m self-employed or have irregular income?
Yes. Lenders usually want two years of tax returns, and some offer bank statement loans. Talk to a lender early so you know what paperwork to gather.

 

What’s included in my monthly mortgage payment?
Usually principal, interest, property taxes and homeowners insurance. Add mortgage insurance if you put less than 20% down on a conventional loan, and HOA dues if the home has them.

 

What are closing costs for buyers?
Lender fees, title and escrow fees, prepaid taxes and insurance, and your appraisal. Your lender will give you a Loan Estimate with the details. You can also ask the seller for a concession to help cover them.

 

What is a 2-1 buydown, and how does it work?
Your interest rate is lowered by 2% in year one and 1% in year two, then returns to the full rate in year three. The cost is paid upfront, often by the seller as a concession. It lowers your payment while you settle in.

Who pays for a 2-1 buydown?
Most often the seller, through a concession we negotiate in your offer. A builder or lender can also pay for it, or you can pay it yourself.

 

What should I know about property taxes and HOA fees in Utah?
In Utah, a primary residence generally gets a 45% residential exemption on its taxable value. For HOAs, check the monthly dues, what they cover and the rules, and ask about any reinvestment fee charged when the home sells.

 

What utility costs should I expect?
It depends on the home’s size, age and efficiency. Ask the seller for 12 months of utility bills during your due diligence period so you know what to budget.

What is earnest money, and how much should I offer?
It’s a good-faith deposit that shows the seller you’re serious, and it goes toward your purchase at closing. The amount depends on the price and how competitive the home is. I’ll recommend an amount when we write your offer.

 

What happens if the home inspector finds problems?
During the due diligence period in the Utah contract, you can ask the seller to make repairs, lower the price, give you a credit, or cancel. I’ll help you decide what’s worth asking for.

 

What if the home appraises lower than my offer price?
Depending on your contract, you can renegotiate the price, cover the difference in cash or cancel. We’ll look at the appraisal together and decide your best move.