Frequently Asked Questions

Pre-qualification is a quick, initial estimate of how much you may borrow based on self-reported financial data, often with no credit pull. Pre-approval is a more rigorous, verified process requiring documentation (tax returns, W-2s) that confirms your loan amount, often involving a hard credit inquiry. Pre-approval is stronger for home offers

A higher credit score significantly lowers mortgage interest rates by reducing lender risk, often saving borrowers thousands over the life of a loan. Scores of 740–780+ generally unlock the best rates, while lower scores (below 620) result in higher rates and limited options. A 100-point score drop can increase rates by 0.5% or more. 

Closing costs are fees associated with finalizing your mortgage and transferring the property to you. These typically include loan origination fees, appraisal fees, title insurance, property taxes, and other lender and third-party charges. In Utah, closing costs usually range from 2–5% of your home's purchase price, though this can vary. Your lender will provide a detailed Closing Disclosure showing exactly what you'll pay. I can review this with you and help you understand each charge.

The homebuying process in Salt Lake City, Utah, typically takes 30 to 60 days to close once you are under contract, though the entire journey from starting your search to getting keys often spans three to six months.

Here's what to expect when working with me:

Pre-approval: Get your mortgage pre-approval so we know your budget and can move quickly when the right home appears.

Home search: I show you homes that fit your criteria and answer all your questions about neighborhoods, schools, utilities, and market conditions.

Making an offer: Once you find the right home, I help you craft a competitive offer with the right earnest money and contingencies.

Offer acceptance: After the seller accepts your offer, your contract officially begins the 30–40 day closing timeline.

Home inspection: You'll hire an inspector to examine the home for any issues. I guide you through understanding the results and negotiating repairs if needed.

Appraisal: The lender orders an appraisal to confirm the home's value supports your loan amount.

Underwriting: The lender reviews all your financial information and the property details to approve your loan.

Final walkthrough: A few days before closing, you'll walk through the home to confirm agreed-upon repairs were completed.

Closing: We sign all documents, you receive the keys, and you're officially a homeowner!

Yes, you can absolutely buy a home if you are self-employed or have irregular income, but the approval process requires more documentation to prove stable earnings. Lenders typically require two years of tax returns, 1099 forms, and personal/business bank statements to verify income consistency. 

Key Tips for Success:

Use Bank Statement Loans: Non-QM (Non-Qualified Mortgage) loans allow you to use 12–24 months of bank statements to verify income instead of tax returns, which is ideal if you have many business deductions.

Show Two-Year History: Lenders typically look for at least two years of consistent self-employment in the same industry.

Prepare Documentation: Be ready to provide 1099s, profit and loss (P&L) statements, and a year-to-date balance sheet.

Strengthen Your Profile: Maintain a high credit score and prepare for a higher down payment, as lenders may require this to offset risk. 

*For personalized advice, consult with a mortgage broker who specializes in self-employed loans. 

A standard mortgage payment is primarily composed of PITI: Principal, Interest, Taxes, and Insurance. It covers the loan repayment and escrow items, often including Private Mortgage Insurance (PMI) if the down payment was less than 20%, ensuring all housing costs are managed in one monthly, usually fixed payment (excluding tax/insurance fluctuations).

Components of a Mortgage Payment

Principal (P): The amount of money borrowed that goes toward paying down the loan balance.

Interest (I): The cost of borrowing the money, paid to the lender.

Taxes (T): Real estate taxes (property taxes) assessed by local governments, often collected monthly and held in escrow.

Insurance (I): Homeowners insurance (hazard insurance) to protect the property.

Mortgage Insurance (PMI/MIP): Required if your down payment is less than 20% on a conventional loan (PMI) or if you have an FHA loan (MIP). 

Optional or Separate Payments

Homeowners Association (HOA) Fees: Sometimes paid directly to the HOA, but sometimes included in the overall housing cost calculation. 

Important Notes

Escrow Account: Property taxes and homeowners insurance are often managed in an escrow account, which can cause the total payment to change annually.

Fixed vs. Variable: With a fixed-rate mortgage, the principal and interest portion stays the same, but the total payment can change if taxes or insurance costs increase.

A 2-1 buydown is a financing arrangement that temporarily lowers your mortgage interest rate—by 2% in the first year and 1% in the second—before it reverts to the original, fixed rate for the rest of the term. It is often funded by seller concessions to help buyers lower initial payments. 

How a 2-1 Buydown Works

Rate Reduction: If the locked, permanent rate on your 30-year mortgage is 6%, you pay 4% in year one, 5% in year two, and 6% in years 3 through 30.

Upfront Cost (Subsidy): The difference between the lower payments and the note rate payments is deposited into a special escrow account by the builder or seller at closing.

Monthly Subsidy: Each month, money from this escrow account is used to make up the difference to the lender, ensuring the seller-funded subsidy covers the discount.

Refinancing: If you refinance within the first two years, the remaining unused funds in the escrow account are applied to your principal balance. 

Key Considerations

Qualification: Buyers must still qualify for the mortgage at the full, higher note rate (e.g., 6% in the example above), not the discounted rate.

Best for Buyers: It provides, on average, lower initial payments, which is ideal if you expect your income to rise or anticipate lower interest rates for a refinance within two years.

Best for Sellers: It is a valuable incentive to attract buyers without permanently lowering the home's sale price. 

Example of a 2-1 Buydown

Mortgage Rate: 7%

Year 1: 5% interest rate

Year 2: 6% interest rate

Year 3+: 7% interest rate

A 2-1 buydown is most commonly paid for by the seller or builder as a concession to attract buyers, although it can technically be funded by the buyer. The funds are deposited as a lump sum at closing into an escrow account to subsidize the lower monthly payments for the first two years. 

Key Details on Who Pays:

Seller/Builder (Most Common): Sellers use this as an incentive to make their home more attractive without lowering the sale price, often covering the cost through concessions.

Buyer: A buyer can pay for the buydown to voluntarily lower their initial payments, but they must still qualify for the loan at the higher, permanent note rate.

Lender: While lenders generally do not fund the subsidy, some may offer it as a feature of their loan programs, sometimes in exchange for a higher, permanent rate or fee. 

In a 2-1 buydown, the rate is 2% lower in year one and 1% lower in year two, with the seller's lump sum payment covering the interest difference.

As of March/April 2026, the Herriman and Salt Lake Valley real estate market is experiencing a "reset" or stabilization, characterized by cooling prices, higher inventory, and a shift toward a more balanced, buyer-friendly market. Herriman specifically has seen price declines (median ~$577K-$615K) and longer days on market (51-133 days) compared to 2025. 

Herriman Real Estate Market (Spring 2026)

Median Sale Price: Roughly $577,000–$615,000, with some data suggesting a year-over-year decline (down up to 7.7%).

Market Velocity: Homes are taking longer to sell, averaging 51–133 days on the market, indicating a slower pace than previous years.

Market Type: The market has shifted toward a buyer's market, where supply is catching up to demand, giving buyers more negotiating power.

Neighborhood Trends: Prices vary by area, with higher-end areas like Rose Canyon ($937K+) and lower-cost areas like Herriman Towne Center ($435K). 

Salt Lake Valley Real Estate Market (Spring 2026)

Market Trends: The broader Salt Lake County area is seeing a "warm" market, with a median listing price of approximately $555,000.

Prices & Inventory: While some parts of the valley maintain strong pricing, overall price growth has slowed, with slight year-over-year declines in some metrics, creating more opportunities for buyers.

Rental Market: Rent prices are still rising, showing strong demand in the rental sector with a 6% year-over-year increase.

Outlook: 2026 is described as a period of stabilization, with projections of higher sales activity but improved inventory compared to the intense, low-supply years of 2020–2022. 

The market in Herriman and the broader Valley is now more favorable to buyers than at any point in the last few years, driven by lower competition and increased choices.