Nov 12, 2025 / Mortgages
Dreaming of homeownership but aren’t sure where to start? Totally understandable. Buying your first home can feel like learning a new language. Thankfully, you don’t need to be an expert in finance to buy your first house. You just need the right partner (hey — that’s us!) to guide you through it!
At Utah First, we’re fluent in mortgage-speak, and we happen to be pretty great translators. Consider this your friendly crash course in making homeownership happen right here in Utah. Whether you’re renting, saving, or just starting to explore, we’ll break down the process in a way that makes sense.
So grab your favorite beverage, settle in, and let’s talk about just how doable it can be to buy your first home!
Before you start scrolling listings and dreaming about farmhouse sinks, you’ll want to get friendly with your finances. Understanding the key numbers below helps you see what’s possible right now and what to work on before applying for a mortgage. These figures help lenders determine how ready you are to own your first home!
Your debt-to-income ratio (DTI) is one of the main ways lenders figure out how comfortably you can take on a home loan. In plain English, DTI is the percentage of your monthly income that already goes toward paying debts like auto loans, student loans, or credit cards.
Let’s say you earn $4,000 a month before taxes and spend $800 on monthly debt payments. Divide your monthly debts ($800) by your monthly income ($4,000), and you get 0.20, or 20% DTI.
Lenders use that number to make sure you’ll have enough breathing room to handle a mortgage and still live your life. A DTI below 43% is considered healthy for homebuying — but don’t panic if you’re not there yet. At Utah First, we’ll consider your full financial picture, like your savings habits and future earning potential, and look for ways to say yes.
Your credit score is sort of like a report card for your financial life. It’s a three-digit number from the big three credit bureaus (Equifax, TransUnion, and Experian) to show how you handle borrowed money. They look at stuff like how often you pay on time, how much you owe, and how long you’ve been in the credit game.
Most mortgage lenders like to see 620+, but if yours is more colorful, don’t sweat it. FHA loans and Utah First’s Clean Slate Mortgages are made for people making a credit comeback!
Meanwhile, credit history is the story behind your score, made up of every payment, balance, and “oops” along the way. We use it to get a full picture of where you’ve been, not to judge where you’re going.
If you’ve been paying rent, you’re already doing a trial run for homeownership. A mortgage just means those payments build your equity instead of your landlord’s retirement.
When planning how much house payment your monthly budget can handle, don’t forget to factor in the extras that come with homeownership — like property taxes, insurance, utilities, and the occasional purchases first-timers have to make (a lawn mower, a snow shovel, etc.).
Pro tip: Try to keep your total housing costs between 25% and 30% of your gross monthly income. That sweet spot leaves room for living your life, like takeout, road trips, and a new couch that hasn’t been with you since college.
A down payment is your buy-in that gives you a little skin in the game and tells lenders you’re serious. It also lowers your loan amount, can reduce your monthly payment, and sometimes helps you skip mortgage insurance.
Let’s bust a myth: You don’t always need 20% down to buy a house. Many Utah first-time homebuyer programs let you pay as little as 3% down, and some even go as low as 0%. FHA is one program that permits low down payments, while VA and USDA loans don’t require one at all.
If you’ve been saving, amazing! If not, no judgment, and don’t stress about how much is in your savings account. We’ll help you find the program that makes the math work for your current situation.
Once you’ve crunched the basics, it’s time to think about what comes with the keys. Owning a home means swapping rent checks for real roots. And while that’s an amazing trade, you’ll need to plan for a few extra costs.
Closing costs are what you pay to make your mortgage official. They usually run 2% to 5% of your loan amount and cover expenses like title fees, appraisals, and underwriting.
If you’re buying a $400,000 home, for example, closing costs might land between $8,000 and $20,000 — but don’t panic! Many Utah first-time homebuyer programs can help cover part (or all) of that. Plus, our friendly team will help you estimate closing costs early so there aren’t any surprises when it’s time to sign.
We cannot stress this enough: Never skip the inspection! A home inspection gives you the chance to see what’s behind the pretty paint. A few hundred dollars upfront can save you from shelling out thousands on surprise repairs later and even give you negotiating power before closing.
In most cases, your realtor doesn’t cost you a dime. Their commission comes from the seller’s side and gets split between the buyer’s and seller’s agents, meaning you get a personal home-hunting guide practically for free.
Commissions tend to range from 5% to 6% of the selling price, which the seller pays at closing. Unless you’ve made a special agreement, you won’t owe your agent anything directly — just a big thank-you when they hand you the keys!
If your dream neighborhood has a pool, playground, or bushes that look suspiciously well-groomed, there’s probably a homeowners association (HOA) behind it all.
HOA fees cover things like landscaping, waste management, maintenance, snow removal, and community perks. They usually run anywhere from $50 to $400 a month, depending on where you live and what’s included.
Now that we’ve covered what you’ll pay as a homeowner, let’s talk about how you’ll pay for it. Enter the mortgage — a long-term loan that helps you buy your home now and pay it off over time, while you build equity (the fancy word for “ownership”). Every payment chips away at what you owe and adds to what’s yours — like a savings plan with a roof.
For most first-time buyers, a few loan types tend to be the best fit:
When you work with our mortgage team, we’ll help you find the best fit for where your life’s at.
Most mortgages come in 15- or 30-year terms. It’s kind of like choosing between a brisk hike and a scenic drive; the 30-year gives you more time to make lower monthly payments, while the 15-year helps you pay off your home faster and save on interest.
Before you take any house tours, it’s smart to shop around for mortgage rates. Even a 0.25% lower interest rate can save you thousands! Utah First can even compare quotes for you, and we’ll always try to beat your other options (not to brag, but we usually can).
You should also get pre-approved with Utah First to show sellers you mean business and shop with the confidence of knowing what you can afford.
Utah has some of the best first-time homebuyer programs in the nation, and we work with all of them! From down payment assistance to low-rate loans, our team helps you snag every break and perk possible.
Some of our favorite programs include:
You can see the full list of first-time homebuyer programs in Utah and check eligibility on our Homebuyer Assistance Programs page!
The search for “the one” is where it all starts to feel real — the house tours, the offers, the smell of new carpet or original hardwood floors.
Here’s what the journey from “just browsing” to “just closed” usually looks like:
You can always fire up Zillow to start looking for homes, but once you’re serious, be sure to chat with a local realtor, too. Realtors can steer you toward up-and-coming neighborhoods with killer views and away from fixer-uppers in disguise.
Work with your realtor and mortgage loan team to determine your budget and narrow down your non-negotiables (location, size, price), then let them handle the heavy lifting.
Pro tip: We suggest you start house-hunting about 60–90 days before your current lease ends. That’s the sweet spot for offers, inspections, and paperwork without feeling rushed.
Once you’ve found a house that checks your boxes, it’s go time. Your realtor will help you decide on an offer price based on local comps (that’s short for comparable sales), handle negotiations, and prep the official paperwork. Your Utah First pre-approval letter shows the seller you’re serious, not just browsing.
Once your offer is in, you’ll get a “yes,” a counteroffer, or news that the seller has accepted another offer. (Always a bummer, but never the end of the road!)
Pro tip: Keep backup options in mind in case things fall through. Having a few backup homes on your radar keeps you from starting over every time the market throws a curveball.
Before the deal goes any further, two pros step in: the appraiser and the inspector. The appraiser makes sure the home’s value matches your loan amount, while the inspector makes sure it’s not hiding any structural surprises.
If something concerning pops up, your agent can help you negotiate a better price or even repairs — so keep calm and inspect on.
Welcome to the least glamorous but critical step. Underwriting is basically a financial background check that ensures your lender has every detail they need before approving the loan. The title company verifies the property’s history, and escrow safely holds onto any earnest money deposits, down payments, or closing costs until closing.
You made it to the finish line! Closing day is where you’ll sign what feels like 47 versions of your name, transfer the funds, and finally get your house keys. Your lender sends the money, the title company records the sale, and boom — the home is officially yours.
Even the most prepared first-time buyers have a few questions — so let’s tackle the big ones.
Should I keep renting or buy now?
Renting might feel comfortable, but those payments aren’t getting you anywhere. Every month, you’re helping someone else build equity (and probably paying off their mortgage).
Owning a home means every payment adds to your own wealth. So if you can afford rent, you can afford a place that’s yours and grows your future with every payment!
The sooner you start owning, the sooner your money starts giving you returns.
Should I wait for the market to get better?
Since the market is always moving, it’s better to focus on your timing, not the market’s. Prices and rates constantly fluctuate, and waiting for the “perfect” moment usually means you’re just watching homes get more expensive while you sit on the sidelines.
If your credit, savings, and budget are ready, that’s the right time to buy — because every month you wait is another month of rent that’s not building equity for you.
Is it better to pay debt down or save more for a down payment?
Depends on your DTI. If your debt is manageable, saving up could help you qualify for better programs. Our financial experts can run the numbers with you and find the sweet spot!
What unexpected costs should I plan for?
Homeownership comes with HOA dues (sometimes), property taxes, maintenance, and the occasional “new roof in five years” surprise. We’ll help you plan your monthly budget so nothing catches you off guard.
How do I find the right house?
Zillow is a fun place to start, but a good realtor is priceless. They’ll help you spot hidden gems, negotiate like a pro, and avoid buying a fixer-upper that needs, well, everything.
Buying your first home might be a nerve-racking leap to take, but with the right partner, you can step forward with confidence!
Now that you’ve read the guide, let’s make it real. Our Utah-based lending team can help you qualify for a first-time buyer program, lower your costs, and finally put your name on the deed instead of another lease, whether you’ve got perfect credit or none at all.
Apply for a Utah First mortgage and make Utah your home — for real.