Contact DanApply nowThe starting point
Begin with the monthly payment and cash cushion you can comfortably manage. Then work backward to a home price and financing plan. Your maximum approval and your preferred budget can be different numbers.
Choose a comfortable payment before a price range.
If you are comparing a Sandy condo with a South Jordan townhome, put the full cost of each on paper. Include principal and interest, property taxes, homeowners insurance, mortgage insurance when applicable, and HOA dues. Then leave room in your household budget for utilities, maintenance and life outside the house.
Bring an honest picture of spending to our first conversation. Childcare, travel, retirement contributions and the amount you want to save each month belong in your personal plan even when they do not appear as debts on a credit report.
Sources: CFPB: Understanding your Loan Estimate · CFPB: Preparing to shop for a mortgage
Separate your down payment from the rest of the cash.
You do not automatically need 20% down to buy. For example, FHA financing allows down payments as low as 3.5% for qualified borrowers and requires mortgage insurance. Compare it with eligible conventional or VA options instead of assuming one program is always best for a first purchase.
Down payment is only one line in the plan. Ask for estimates of closing costs, prepaid expenses and funds due before closing, then decide what savings should remain untouched afterward. We can work through the tradeoff between bringing more cash and keeping flexibility.
Sources: CFPB: FHA loans
Ask better questions about Utah down-payment assistance.
If assistance is part of your plan, ask us to check current Utah Housing and local program options for the property and household. Availability and qualification need to be confirmed for your transaction before you rely on them in an offer.
The important question is how the assistance fits your full financing package. Ask whether it must be repaid, whether it adds a payment, and what happens when you sell or refinance. A smaller amount due at closing is useful only when you understand the obligations that come with it.
- Which income, purchase-price and property-location rules apply?
- Is funding available, and when is it reserved?
- Is buyer education required?
- What are the combined payments and repayment conditions?
- How does this compare with buying without assistance?
Move through the purchase in a useful order.
First, review credit, income, savings and a comfortable budget. Next, review financing options and the documents needed for preapproval. Then coordinate the price range and timing with your real-estate agent.
Once you have a contract, stay responsive to document requests and review the property, financing and closing details together. Before changing jobs, moving large sums or opening new credit, talk with your loan team about the effect on the file. Preapproval does not remove the conditions that must be satisfied before funding.
Sources: CFPB: The homebuying process
Put it in context
A cash plan for a hypothetical Utah purchase
Suppose your down payment is $25,000, estimated closing costs and prepaid expenses total $12,000, and you want $10,000 left in savings. Your planning target is $47,000 before accounting for any credits, assistance or deposits already paid.
These are invented planning amounts, not a quote or program requirement. The point is to give every dollar a job before you offer on a home. An earnest-money deposit already paid should be accounted for once, rather than added twice to your final cash-to-close.
Bring these to our first conversation.
- Your preferred monthly housing budget
- Income sources, employment history and available documents
- Savings and any planned gift or assistance
- Current debts and credit questions
- Lease end date and the communities you are considering
Start with what you know. When documents are needed, use the secure application rather than sending sensitive financial information through email.
Start a conversationQuestions I want you to feel comfortable asking.
Should I wait until I have 20% down?
That depends on your options and your budget. Some programs allow a smaller down payment, with different insurance, eligibility and cost considerations. Compare the complete cost and the savings you would keep rather than deciding from a percentage alone.
Sources: CFPB: FHA loans
Can I talk with Dan before I am ready to apply?
Yes. Bring your timeline, approximate budget and questions. A conversation can help you identify what to work on before taking the application step.
Does preapproval guarantee the loan will close?
No. Read the conditions attached to it. Final approval also depends on the property, verification of your information and satisfaction of the lender’s requirements.
What if I am not ready yet?
We can outline the next steps and identify which information is missing. The goal is a clear plan you can act on, even when buying immediately is not the right fit.