How to Buy a House in Utah: A Homebuyer’s Guide
Updated: March 3, 2023
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The value of a typical home in Utah has climbed by roughly 10% in the last year to $557K — this is far more expensive than the value of a typical home nationwide, which is $358K.
There are additional factors to consider, such as the mortgage terms, in addition to pricing and locating the best place to buy a house in Utah. Utah is one of the most expensive states for homeownership in the nation while having relatively low property tax rates. Mortgage payments in Utah are roughly $102 per month more expensive than they are nationwide.
Understanding the process of buying a property can have wide-reaching benefits. MoneyGeek's guide for Utah homeowners puts a focus on the fundamentals, such as submitting an application, figuring out mortgage rates, conducting a home inspection and closing a deal.
Choose an Ideal Location
One of the key considerations for consumers when purchasing a home is the location. The cost of your property and mortgage will be significantly influenced by where you decide to live.
You should consider the cost of living, neighborhood culture, accessibility to amenities and other readily accessible spaces when browsing the cheapest places to buy a house in Utah.
Calculate Mortgage Rates
Once you’ve found the best place to buy a house in Utah, MoneyGeek advises paying attention to a number of factors that significantly affect your mortgage rate, including your chosen lender, credit score, interest rates, loan type and loan amount, among others.
There are several different types of mortgages available in Utah, and they all have varying rates and eligibility requirements.
Prepare Down Payment Requirements
Most of the time, a down payment is required for you to buy your ideal house from Utah's real estate market. Your APR depends on the type of loan and the size of your down payment. Some loans require as little as 3.5% down, while others require no down payment at all.
Get Pre-Approved for a Mortgage
Obtaining a mortgage pre-approval is crucial after selecting a lender in Utah. Once you have pre-approval, sellers will take you much more seriously as a prospective homebuyer.
Prequalification is not the same as pre-approval. Your lender only offers a projected amount of the loan when you prequalify. On the other hand, pre-approval indicates that the lender has agreed to loan you a specified amount after examining your credit report and financial history.
Conduct a Home Inspection
An important step in the purchasing process, a home inspection is often paid for by the homebuyer. A competent third-party home inspection can provide you with further information regarding the present state of the house and whether repairs are required. This inspection can cost up to $500.
Close Your Mortgage Loan
You can now finalize your loan after thoroughly reading the application. You must pay closing fees in order to cover the fees related to your credit report, appraisal and document processing. If you’re struggling to afford them, you can seek out closing cost assistance programs.
Utah Homebuying Details
When purchasing a home, there could be elements that are state-specific. In order to prepare yourself for a house purchase, don't be hesitant to speak with your lender or a real estate expert. Additionally, you may be eligible for homeowner assistance programs in Utah, which could aid you with the purchase of a new house.
Utah Housing First-Time Homebuyer Veterans Grant
Utah Housing provides a $2,500 grant to veterans and active-duty military personnel who are purchasing their first homes in the state.
Utah Homeowners Assistance Fund
The UHAF is a federally funded housing assistance program that helps homeowners in Utah who struggled to afford their homes during the COVID-19 pandemic.
Community Development Corporation of Utah Mortgage Assistance Program
The CDCU offers up to $5,000 in mortgage assistance to households with less than 60% of the area's median income.
Frequently Asked Questions About Buying a Home in Utah
Your search for a home in Utah may be challenging if you still have any lingering uncertainties. MoneyGeek has answered some frequently asked questions to help you get started on your Utah real estate exploration.
You should consider your property preferences, the area in which you wish to live and the cost of a Utah home purchase.
When compared to national averages, Utah's average housing prices are much higher than average. Pushing forward with buying a house in Utah is a good idea when you are confident about such a significant financial commitment.
It is currently challenging for some individuals to buy a home in this area due to the rising sale prices. Even so, it makes sense to buy now if you intend to stay in Utah for the long term, especially since home prices and interest rates aren't anticipated to fall significantly anytime soon.
The median-priced home in Salt Lake County, the most populous county in Utah, is $460,000. To purchase a home, a buyer needs to earn at least $101,400 annually.
In Utah, counties typically receive 0.6% of the assessed fair market value of a property as property tax each year.
Although living in Utah is expensive, there are still some small towns with very affordable home values, like Moroni, Sterling and Mayfield.
sources
- Chenoa Fund. "Discover a Down Payment Assistance Program Dedicated to Homeownership." Accessed October 24, 2022.
- Deseret News. "Now you need a six-figure income to afford a median-priced home in Utah’s largest county." Accessed October 24, 2022.
- NeighborWorks Salt Lake. "Down Payment Assistance." Accessed October 24, 2022.
- Tax-Rates.org. "Utah Property Taxes 2022." Accessed October 24, 2022.
- Utah Housing Corporation. "Down Payment Assistance." Accessed October 24, 2022.
- Utah Housing Corporation. "Utah Homebuyer Veteran Grant." Accessed October 24, 2022.
- Zillow. "Utah Home Values." Accessed October 24, 2022.