Buying a House: Step-by-Step for First-Time Buyers

Buying a house follows a clear sequence: check your finances, get preapproved, find a home, make an offer, navigate the inspection and appraisal, and close. Most buyers move through this process in several weeks to a few months once preapproval is in hand, though the timeline depends on the local market, your lender, and how quickly the right home comes along. Knowing what each stage requires before you start makes the whole process far less stressful.

If you're buying a house in Utah, having a knowledgeable local team in your corner from day one makes a real difference. The Empire Group works with buyers throughout Salt Lake County and surrounding communities to walk through every stage, from that first budget conversation to handing over the keys.

Key takeaways

• Down payment range: First-time buyers typically put down around 10%, but programs exist that allow as little as 3% to 3.5% down.
• Budget for closing costs: Plan for 2% to 5% of the purchase price in addition to your down payment, plus cash reserves after closing.
• Get preapproved first: A preapproval letter is essential before making any offer and tells sellers you're a serious buyer.
• Assistance programs exist: Utah buyers have access to state, county, and city programs that can significantly reduce upfront costs.
• Contingencies protect you: Never waive an inspection contingency without fully understanding what you're giving up.
• Review before you sign: Read your Closing Disclosure carefully at least three days before closing and flag any discrepancies immediately.

Buying a house: How much money do you actually need?

The biggest hurdle most buyers imagine is saving enough money to get started. The good news is that the 20% down payment idea is a myth for many buyers, especially first-timers. Understanding the real numbers up front helps you set a realistic savings target and avoid surprises.

What down payment percentage should first-time buyers expect?

First-time buyers nationally put down a median of about 10% of the purchase price. Several loan programs allow much less. FHA loans require just 3.5% down for buyers with a credit score of 580 or above. Many conventional loans start at 3% down, and eligible veterans and USDA-qualified buyers can access zero-down financing. A larger down payment does reduce your monthly payment and can eliminate private mortgage insurance on conventional loans, but it is not required to buy a home.

How much should you budget for closing costs?

On top of the down payment, buyers should budget 2% to 5% of the purchase price in closing costs. On a $400,000 home, that translates to $8,000 to $20,000. These costs cover lender fees, title insurance, escrow, prepaid property taxes and homeowner's insurance, and recording fees. Just as important: keep cash reserves after closing for immediate repairs, moving expenses, and the first few months of homeownership costs. Running out of money the week after you close is a stressful way to start.

Are there assistance programs for first-time homebuyers?

Yes, and many buyers never take advantage of them. Utah Housing Corporation offers programs like the FirstHome Loan, which can provide down payment assistance up to $27,500 for eligible buyers. The Salt Lake County first-time buyer program offers up to $20,000 in deferred assistance, and West Valley City offers a non-repayable grant of nearly $15,000 for qualifying buyers, though it's worth confirming current amounts directly with the program, as funding and terms can change. Nationally, Fannie Mae HomeReady and Freddie Mac Home Possible bring conventional loans down to 3% for income-eligible buyers.

Programs generally fall into three types: grants (no repayment required), deferred loans (due at sale or refinance), and forgivable loans (forgiven after a set occupancy period). Check state and local options early because funding is often limited and programs have income and purchase price caps.

Buying a house: What does mortgage preapproval actually involve?

A preapproval letter tells sellers you've been evaluated by a lender and can likely borrow up to a specific amount. Without it, most sellers won't take your offer seriously. Getting preapproved before you start touring homes also gives you a realistic budget so you don't fall in love with something outside your range.

What documents do lenders ask for?

Gather these before contacting any lender so the process moves quickly. The standard package includes a government-issued photo ID, recent pay stubs covering the last 30 to 60 days, two years of W-2s, two years of federal tax returns, two months of bank statements, and documentation for any outstanding debts. If you're receiving gift funds toward your down payment, you'll also need a signed gift letter. Self-employed buyers typically need additional documentation including business returns and a year-to-date profit-and-loss statement.

Does your credit score affect which loan you qualify for?

It does. Most conventional loans require a 620 minimum, FHA loans start at 580 for the 3.5% down option, and VA loans have no official minimum though lenders set their own thresholds. A score of 680 or higher opens more lender options, and 740 or above often unlocks better conventional pricing. During preapproval and all the way through underwriting, avoid opening new credit accounts, making large purchases, or changing jobs. These actions can trigger a re-evaluation and potentially delay or derail your loan.

Is preapproval the same as final loan approval?

No, and this distinction matters more than most buyers realize. A preapproval letter estimates your borrowing limit based on the documents you provide at that moment. Final approval happens during underwriting, after a specific property is under contract and the lender has verified everything in detail. Compare estimates from at least two or three lenders before choosing one, interest rates, fees, and loan structures vary more than most buyers expect.

How do you find the right home and put in a strong offer?

Once preapproval is in hand, the home search begins. This stage is exciting, but it requires discipline. The homes that feel right on a first tour don't always hold up when you dig into the numbers, the neighborhood, or the condition of major systems.

Why working with a local buyer's agent matters

A buyer's agent advocates exclusively for you and costs nothing out of pocket in most transactions. For buyers in Utah, working with a team that knows Salt Lake County's neighborhoods, from Herriman and West Jordan to Sandy and South Jordan, means getting honest pricing guidance and early access to listings before they move. The Empire Group pairs every buyer with personalized support and skilled negotiation, which is especially valuable when multiple offers come in fast. The team also offers bilingual service in English and Spanish, making a meaningful difference for Spanish-speaking buyers who want clear explanations at every stage.

What should you focus on when touring homes?

Look beyond finishes and floor plans. Evaluate commute times, school districts, flood zone status, property taxes, and HOA fees where applicable. Cosmetic issues like paint and carpet are easy and inexpensive to fix; foundation problems and outdated electrical systems are not. Bring a simple checklist to each showing so your impressions stay objective after you've toured eight or ten homes and everything starts to blur together.

What goes into a competitive offer?

A purchase offer includes the price, proposed closing date, earnest money deposit, items to include such as appliances or fixtures, and contingencies. The most common contingencies are financing, inspection, appraisal, and title. In competitive markets, buyers sometimes offer above list price, shorten contingency periods, or increase the earnest money deposit to signal seriousness. Never waive an inspection contingency without fully understanding the risk. If a defect surfaces after closing and you have no contractual protection, the cost falls entirely on you.

What happens after your offer is accepted?

Acceptance is exciting, but the real work starts here. The due diligence window that follows often surprises first-time buyers with how much activity is required in a short period of time. Stay on top of deadlines and communicate with your agent daily.

Home inspection checklist: What does the inspector actually examine?

A licensed inspector examines the roof, foundation, electrical, plumbing, HVAC, and other major systems. Common findings include aging roofs, water intrusion, outdated wiring, and HVAC equipment near the end of its useful life. Depending on the property, you may also want specialized inspections for radon, sewer lines, pests, or structural concerns. The inspection report becomes the foundation for the next conversation with the seller, so read it carefully and ask your agent to help you prioritize what matters.

What if the appraisal comes in below the contract price?

Your lender orders an independent appraisal to confirm the property supports the loan amount. If the appraised value falls short of the contract price, you have several options: renegotiate the price with the seller, increase your down payment to cover the gap, challenge the appraisal with comparable sales data, or use the appraisal contingency to exit the contract with your earnest money returned. The right move depends on how much you want the home, what the numbers look like, and what your contract terms allow.

How should buyers negotiate repairs after inspection?

Separate findings into three categories: safety and structural issues, expensive system failures, and cosmetic wear. Focus your repair request on the first two categories only, supported by contractor estimates when possible. Requesting a closing-cost credit is often cleaner than requiring the seller to manage repairs, because you control the quality of the work after closing. A focused, evidence-based request is far more likely to succeed than a list of 30 minor items.

What should you expect at closing?

Closing day is the finish line, but the preparation happens in the three days before you ever sit down at the table. Buyers who review their documents in advance and arrive with everything in order have a much smoother experience than those who open the paperwork for the first time at closing.

What is the Closing Disclosure and when do you get it?

Federal law requires your lender to deliver the Closing Disclosure at least three business days before closing for most mortgage transactions. This document shows your final loan terms, monthly payment, itemized fees, and the exact cash to close. Compare it line by line with the Loan Estimate you received earlier. Flag any discrepancies immediately; corrections take time, and surprises at the closing table can delay the entire transaction.

Why does the final walkthrough matter?

Scheduled shortly before closing, the walkthrough confirms the home is in the agreed-upon condition: included items are still present, negotiated repairs are complete, and no new damage has occurred since your inspection. This is not the time to make new requests, but it is absolutely the time to raise a concern if something is clearly wrong. Skipping the walkthrough means you have no documented proof of the home's condition at the moment of transfer.

What happens at the closing table?

Bring a valid government-issued ID and your required funds, typically arranged as a cashier's check or wire transfer arranged in advance. You'll sign loan documents, transfer documents, and title paperwork. After recording is confirmed, which happens the same day in many cases, the keys are yours. Arrange utilities and moving logistics before closing day so the transition is smooth from the start.

Ready to start buying a house? Take the first step today

Every part of the home buying process has clear requirements, and none of them are out of reach when you know what to prepare for. The key is taking action before you feel completely ready, because the buyers who move forward with intention are the ones who end up with the keys.

For buyers in Utah, The Empire Group is available to walk through every stage with you, from the first question about your budget all the way through closing day. Lady Martinez and the team bring deep local knowledge, bilingual service, and the kind of clear, honest communication that helps buyers make confident decisions in any market.

If you're buying a house, the best place to start is your numbers. Pull your free credit report, get a realistic sense of your down payment range, then call a local lender or agent to open the conversation. The sooner you understand where you stand, the sooner you'll be ready to move.

Frequently Asked Questions

How soon should I get preapproved before I start touring homes?

Get preapproved before you start touring homes. A preapproval letter is essential and gives you a realistic budget so you don’t fall in love with something outside your range, and most sellers won’t take an offer seriously without it.

Will working with a buyer's agent cost me money out of pocket?

In most transactions a buyer’s agent costs you nothing out of pocket. A buyer’s agent advocates exclusively for you and provides local knowledge and negotiation support without a direct fee at closing in most cases.

Should I keep cash reserves after closing?

Yes, you should keep cash reserves after closing. You need funds for immediate repairs, moving expenses, and the first few months of homeownership costs to avoid running out of money right after you close.

Can down payment assistance program amounts or availability change?

Yes, program funding and terms can change, so amounts and availability are not guaranteed. Confirm current amounts and eligibility directly with the state, county, or city program early because funding is often limited and programs have income and purchase price caps.