Before You Start Looking at Houses, Do This First
/I know what you want to do. You want to pull up Zillow, start saving favorites, and schedule a few showings. That is the fun part, and I get it completely.
But after 15 years of helping buyers in Salt Lake City and the surrounding communities, I can tell you with confidence: the buyers who skip what I am about to describe are the ones who end up disappointed. Sometimes heartbroken.
Before you look at a single house, you need to talk to a lender.
What a lender conversation actually tells you
Not a mortgage calculator. Not a quick estimate from a friend who bought a place a few years ago. An actual conversation with a loan officer who looks at your full financial picture and comes back with real numbers.
Here is what that conversation covers:
How much you can borrow. This is based on your income, debts, credit score, and employment history. Online calculators can get you in the ballpark, but they do not account for your debt-to-income ratio, the loan type you qualify for, or any credit issues that need to be addressed first.
How much you need for a down payment. The amount varies by loan program. Conventional loans typically require 5 to 20 percent down. FHA loans can go as low as 3.5 percent with qualifying credit. VA and USDA loans may require no down payment at all. Utah also has assistance programs worth asking about specifically. The Utah Housing Corporation offers down payment assistance that can be combined with their low-interest mortgage programs, and if you qualify, these can make a real difference.
What your closing costs will look like. This is the one that catches buyers off guard most often. On top of your down payment, you will need to bring closing costs to the table. In Utah, plan to budget roughly 2 to 3 percent of the purchase price. On a $500,000 home, that is $10,000 to $15,000. Your lender will give you a Loan Estimate that breaks these costs down so there are no surprises at the closing table.
A pre-approval letter. This is the piece that matters most once you are ready to make an offer. A pre-approval letter tells a seller you have been vetted by a financial institution and are qualified to borrow up to a certain amount. In a competitive market, showing up without one puts you at a real disadvantage.
Pre-approval vs. pre-qualification: they are not the same thing
These terms get used interchangeably, but they are not the same, and it matters.
Pre-qualification is a quick, informal estimate based on information you self-report. No documents are verified, no credit check is run. Sellers and listing agents do not put much weight on it.
Pre-approval is a real underwriting review. The lender pulls your credit, verifies your income and assets, and issues a letter based on confirmed information. That is what you need before you start making offers. Always go for full pre-approval.
A word on choosing the right lender
Not all lenders perform equally, and I have seen transactions fall apart in the final week because a buyer chose a lender based on a slightly lower advertised rate without considering how that lender actually performs when things get complicated.
My strong preference is for local mortgage companies. When all of a lender's departments are here in Utah, communication is faster, problems get resolved more quickly, and closings happen on time. With large out-of-state lenders, your file can bounce between departments in different time zones, and when something needs to be resolved quickly, you often cannot get to the right person.
In a competitive market where sellers want fast, reliable closings, a local lender with a track record of delivering is a genuine advantage for you as a buyer.
What to avoid once you have started the process
Once you are pre-approved, your financial picture needs to stay stable. Lenders re-verify your finances right before closing, so what looked fine at the start needs to still look fine at the end.
Avoid opening new credit cards, making large purchases on credit, changing jobs, making large unexplained deposits, or co-signing a loan for anyone else. I have seen buyers lose their financing in the final days of a transaction because they bought a car or opened a store credit card. It is completely avoidable.
When in doubt, ask your loan officer before you do anything financial.
Ready to take the next step?
The full Utah Home Buyer's Guide walks through every stage of the buying process in detail, from your first lender conversation all the way to closing day, with plain-language explanations and practical worksheets you can use in real time.
And if you would like a referral to a local Salt Lake City lender I trust, I am happy to connect you. Reach me at the link below.
Melissa Brownell is an Associate Broker with Plumb & Company Realtors in Salt Lake City, Utah, with 15 years of experience helping buyers and sellers throughout the Salt Lake Valley.