Kay Letcher

The home buyer's guide

Buying a home in Utah comes down to seven steps: know your monthly payment, know the down payment your loan needs, work out your cash to close, get pre-approved, find the home, make an offer and close. Here is each one with the numbers for Salt Lake City this week and the tool that does it.

Last updated November 5, 2026 · https://kay-letcher.vip50homes.com/guides/buyers

1. Start with the monthly payment, not the price

The whole monthly payment is principal and interest plus property tax, homeowner's insurance, mortgage insurance and any HOA dues. For example, a $500,000 home in Salt Lake City with 10% down at 7.18% (Freddie Mac's 30-year fixed average, week of November 5, 2026) is about $3,589 a month all in, not the $3,048 of principal and interest alone.

In that example: principal and interest $3,048, property tax $212, insurance $104 (our assumption of 0.25% of the price a year, not a quote) and mortgage insurance $225. Utah taxes a home you live in on 55% of its value, and Salt Lake City's 2025 tax rates run 0.9077% to 1.1341% across its 40 tax areas (Utah State Tax Commission, 2025 Tax Rates by Tax Area (final adopted rates)).

Decide the payment you are comfortable with first. A lender will tell you the most they would lend; the right payment is the one that still leaves room for savings, repairs and life.

$3,589 a month all in, on the example: $500,000 in Salt Lake City, 10% down (Freddie Mac, Primary Mortgage Market Survey, 30-year fixed U.S. weekly average)
55% of the value of a home you live in is what Utah taxes (Utah Code 59-2-103 (45% primary residential exemption))

Do it online: True monthly cost (https://kay-letcher.vip50homes.com/buy/monthly-cost) · Ready Plan: your savings target and dates (https://kay-letcher.vip50homes.com/buy/ready-plan)

2. Know the down payment each loan needs

You rarely need 20% down. Conventional loans start at 3% for first-time buyers (5% otherwise), FHA at 3.5% with a 580+ credit score, and VA and USDA at 0% for those who qualify.

On the same $500,000 home at the same rate: conventional with 3% down is about $3,845 a month, FHA with 3.5% about $3,866, VA with 0% about $3,776. Less down means a bigger loan and, on conventional and FHA, mortgage insurance; conventional PMI ends on its own as the loan is paid down, FHA's annual premium lasts the life of the loan under 10% down (HUD Mortgagee Letter 2023-05).

Utah Housing Corporation offers loans and down payment assistance for qualifying Utah buyers, with income and price limits; what is open changes, so check utahhousingcorp.org and ask a lender who works with it.

Least down payment on a $500,000 home (example)
Loan	Least down	On this home	Who it is for
Conventional	3% / 5%	$15,000 / $25,000	3% with a first-time buyer, 5% otherwise
FHA	3.5%	$17,500	580+ credit score (500 to 579: 10% down)
VA	0%	$0	Eligible veterans, service members and surviving spouses
USDA	0%	$0	Eligible rural areas, with household income limits

3.5% least down on an FHA loan, with a 580+ credit score (HUD Mortgagee Letter 2023-05 (annual MIP for FHA case numbers from 20 March 2023); upfront MIP 1.75% (HUD Handbook 4000.1))

Do it online: Ready Plan: your savings target and dates (https://kay-letcher.vip50homes.com/buy/ready-plan) · True monthly cost (https://kay-letcher.vip50homes.com/buy/monthly-cost)

3. Work out your cash to close

Cash to close is the down payment plus closing costs. On the example home with 10% down that is about $58,223: the $50,000 down payment and about $8,223 of lender, title and first-year insurance costs.

Our estimates: lender costs about 1% of the loan plus $900 ($5,400 here), the buyer's title and escrow share about 0.25% of the loan plus $450 ($1,575), and a first year of insurance ($1,250). Your lender's Loan Estimate, which they must give you within three business days of your application, has the real figures.

A seller credit can pay part of your closing costs, within each loan's own limit. Keep some savings after closing too; lenders often like to see it.

$58,223 cash to close on the example home with 10% down (Our estimate at 7.18% (Freddie Mac, week of November 5, 2026); your lender's Loan Estimate has the real figures)

Do it online: Cash to close (https://kay-letcher.vip50homes.com/buy/cash-to-close) · Ready Plan: your savings target and dates (https://kay-letcher.vip50homes.com/buy/ready-plan)

4. Get pre-approved before you tour

Pre-qualification is a quick estimate based on what you tell a lender. Pre-approval means the lender has checked your income, assets and credit, so sellers take your offer more seriously.

Get it before you start touring, so you shop in your real budget and can write an offer the day you find the home. The lender asks for your income, debts and credit on their own application; Kay Letcher never asks those on this site.

Until you close, avoid new debt, large unexplained deposits, job changes and big purchases, and ask your lender before any change.

Do it online: Talk to a loan officer (https://kay-letcher.vip50homes.com/buy/ready-plan#rp-talk) · Ready Plan: your savings target and dates (https://kay-letcher.vip50homes.com/buy/ready-plan)

5. Find the home

Kay Letcher helps buyers across Salt Lake City, Bountiful, Holladay, Draper, South Jordan, Sandy, Herriman, Cottonwood Heights, Saratoga Springs, Eagle Mountain, West Jordan, Millcreek, Murray, Riverton, Lehi, Centerville, Farmington, Kaysville, Layton, Syracuse, West Point, Ogden, West Valley City, Park City, Midway, Heber City, Kamas, Peoa, Midvale and Taylorsville, Utah. Start with drive time to the places you go each week, then the home itself: tour in person or on live video, and get an honest word about each one.

Sign in to keep your search, your saved homes and your tour requests in one place; your agent sees them without you typing anything twice.

Do it online: Our listings (https://kay-letcher.vip50homes.com/listings) · Open houses (https://kay-letcher.vip50homes.com/open-houses) · The areas we serve (https://kay-letcher.vip50homes.com/communities) · Your client portal (https://kay-letcher.vip50homes.com/account)

6. Make an offer and get to closing

In Utah your offer is written on the Utah Real Estate Purchase Contract, with deadlines for the seller's disclosures, due diligence (your inspections), financing and appraisal, and settlement. From an accepted offer to closing is often 30 to 45 days.

Earnest money shows the seller you are serious; the contract says when it is refundable. Use your due diligence time well: the inspection, the HOA documents, insurance quotes and anything you want to check on the street.

A buydown lowers the interest rate for the first two years, often paid for by the seller or builder. Your lender can show what it would mean for your payment.

Your comfortable payment: Start from what you want to pay each month, not the top a lender will allow.
Cash to close: Down payment, closing costs and what you will want left over after you move in.
Pre-approval: We introduce you to lenders who know first-time buyer programs; the lender checks your income, assets and credit.
Homes that fit: Tours of homes in your budget, and an honest word about each one.
Offer to keys: Your offer, inspection, appraisal and closing, explained before each step happens.

Do it online: First-time buyer help (https://kay-letcher.vip50homes.com/services/first-time-buyers) · Move-up: sell and buy (https://kay-letcher.vip50homes.com/services/move-up) · True monthly cost (https://kay-letcher.vip50homes.com/buy/monthly-cost)

7. After you move in

Kay Letcher stays in touch after closing. Past clients get My Home: their home's monthly report, their improvements log and a value review prepared by an agent when they want one.

Keep your closing papers and receipts for improvements: they matter for taxes when you sell.

Do it online: My Home, after you move in (https://kay-letcher.vip50homes.com/my-home)

Why you want your own agent

Buying a home is the largest contract most people ever sign. In Utah the listing agent represents the seller, so when you buy without your own agent, no one at the table is working for you.

The seller's agent works for the seller: Under Utah's real estate rules, an agent owes their client loyalty, confidentiality and full disclosure. The listing agent must be honest with you, but they cannot advise you or negotiate for you. Your own agent owes those duties to you.
Your offer is a binding contract: Once it is accepted, Utah's state-approved Real Estate Purchase Contract binds you. Each deadline in it decides what you can still cancel for and whether your earnest money comes back. Your agent sets dates you can meet and keeps every one.
The inspection and due diligence window: If you do not cancel or object in writing by the Due Diligence Deadline, you are treated as accepting the home as it is. Your agent helps you order inspections, read the report, test for radon (Utah's Department of Environmental Quality recommends testing every home) and ask for repairs or credits in time.
Disclosures, title and HOA papers: Your agent goes through the seller's property condition disclosure, the title report (liens, easements) and any HOA rules, fees and budget with you before your deadlines pass.
Pricing and negotiation: A price grounded in recent sales nearby, and someone on your side when the seller counters or the appraisal comes in low.
Wire fraud: Criminals send fake wiring instructions that look like they come from the title company. Your agent will tell you to confirm by phone, at a number you already trust, before you send any money.

This is general information, not legal advice. For a legal question about a contract, talk with a Utah real estate attorney; we can help you find one.

Do it online: Book a time to talk (https://kay-letcher.vip50homes.com/book)

Your checklist

Pick the monthly payment you are comfortable with
Choose the loan and the down payment that fit you
Work out your cash to close, and keep savings for after
Get pre-approved before you tour
List the places you drive to each week
Tour homes in person or on live video
Book the inspection inside your due diligence deadline
Keep your closing papers and improvement receipts

Questions

How much do I need for a down payment on a home?

The amount you need for a down payment depends on the type of loan and your financial situation. While 20% is a common benchmark, many buyers put down less—some conventional loans allow as little as 3%, and FHA loans require just 3.5%.

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 income, assets and credit, so sellers take your offer more seriously.

What are closing costs, and how much should I expect to pay?

Closing costs are the lender, title and recording fees paid when the sale closes. Your lender gives you a written estimate early, so there are no surprises.

How long does the homebuying process usually take?

From an accepted offer to closing is often 30 to 45 days. Finding the right home first can take a few weeks or a few months.

Can I buy a home if I'm self-employed or have irregular income?

Yes. Lenders usually ask for more paperwork, such as two years of tax returns. Talk to a lender early so you know what they need.

What's included in my monthly mortgage payment?

Usually the loan payment itself, property taxes and home insurance, and mortgage insurance or HOA dues where they apply.

What is a 2-1 buydown, and how does it work?

A buydown lowers the interest rate for the first two years, often paid for by the seller or builder. Your lender can show what it would mean for your payment.

How does refinancing work?

Refinancing replaces your loan with a new one, usually for a lower rate or a different term. A lender can tell you whether the savings cover the costs.

Are there special loan programs for veterans, healthcare professionals, teachers, or first-time homebuyers?

Yes. VA loans, Utah Housing programs and some lender programs can help. We can introduce you to lenders who know them.

What should I avoid doing before closing on a home?

Avoid new debt, large unexplained deposits, job changes and big purchases until you close. Ask your lender before any change.

Sources

Figures are estimates for planning, not a loan offer or a price opinion; your lender and your agent confirm what applies to you.