Build a budget around life after closing
Start with what your household spends today. Include groceries, transportation, childcare, insurance, debt payments and the expenses that do not appear every month. Then decide how much room you want for saving and unexpected costs. A mortgage approval evaluates lending requirements. Your household budget answers a different question: whether the payment feels sustainable.
The mortgage's principal and interest are only part of ownership. Property taxes, homeowners insurance, mortgage insurance when applicable and homeowners association dues may affect your monthly housing costs. Utilities, repairs and maintenance belong in your personal budget even when they are not collected with the payment. Tell Corey your comfortable payment range before working backward to a price.
Separate your down payment from your cash to close
A down payment becomes your initial equity in the purchase. Closing costs pay for the transaction and financing. Prepaid expenses and initial escrow deposits may also be due. These categories can look similar on an early worksheet, but reducing the required down payment does not automatically remove the other costs.
Earnest money is another timing issue. You may need that deposit before closing, even when it will later be credited toward the funds due. Ask when appraisal, inspection and other charges must be paid, which amounts are refundable under your contract and what money should remain after settlement. Keep a separate cushion for moving and the first repair.
- Ask for an estimate of total funds needed, not just the down payment.
- Identify money needed before closing and money due at settlement.
- Discuss gifts before accepting or transferring funds so the required documentation is clear.
- Keep an emergency reserve separate from the amount you intend to bring to closing.
Compare loan types without choosing by label
Being a first-time buyer does not automatically make FHA the right answer. Conventional and FHA financing deserve a comparison based on your actual credit, savings, income and property. HUD says FHA down payments can be as low as 3.5% for eligible borrowers. The full cost still includes the loan's applicable mortgage insurance and other charges.
If you have qualifying military service, review VA eligibility before assuming you need a conventional down payment. For a potentially eligible rural address, USDA financing is another program to investigate. Program names are starting points for a discussion, not a substitute for checking qualification and property requirements. Ask for available options using the same purchase assumptions.
Treat assistance as financing that needs its own review
Utah Housing Corporation is a useful place to investigate homebuyer programs and down payment assistance. Check its current requirements and availability before planning your offer around an award. Assistance may involve a second mortgage, repayment terms, household income rules, education or property restrictions. A program's description does not mean funds are reserved for your purchase.
Ask what happens if you refinance, sell, move out or repay the first mortgage. Also ask how the assistance changes your payment and your remaining equity. Two purchase plans can require different amounts at closing while creating very different long-term obligations. The useful comparison is your whole financing package, including any additional lien.
Prepare for preapproval before touring homes
A useful early conversation covers income sources, employment changes, existing debts, available savings and the type of home you want. Be upfront about self-employment, overtime, gifts, student loans or a recent job change. These details help identify the documents a lender will need and questions to resolve before a purchase deadline is running.
Preapproval is not the same as final loan approval. The property, appraisal, title, updated financial information and underwriting conditions still matter. Ask what was reviewed, what remains outstanding and when the preapproval should be refreshed. Use the secure application and document channels Corey provides rather than sending sensitive records through an ordinary inquiry message.
Read the offer behind the advertised payment
When comparing financing, keep the purchase price, loan amount, term and down payment consistent. Ask whether a quoted rate includes points, whether it is locked and whether the payment includes taxes and insurance. A builder or seller incentive should be evaluated alongside the home's price, the financing costs and any conditions attached to using it.
Corey's new-construction video is a useful conversation starter if a builder is offering financing incentives. Bring the written offer, not just the headline. Before closing, reconcile the agreed terms with the final documents and ask about any unexplained change. There is no advantage in signing something you do not understand because the moving truck is booked.
Frequently asked questions
Do I need perfect credit to start a conversation?
No. Start with an honest review of your situation. Available programs and lender requirements vary, and reviewing your options does not promise approval. If you are not ready today, ask which specific financial or documentation issues need attention before you shop.
Should I use every dollar of savings for a larger down payment?
Compare the payment difference with the value of keeping reserves. A larger down payment can change financing costs, but an empty savings account leaves little room for repairs or income interruptions. Your decision should reflect both the loan terms and your household's need for a cushion.
Where can I keep learning before applying?
The First-Time Homebuyer Academy and free reports provide another starting point. Write down the questions that apply to your household, then bring them to a conversation with Corey. Educational resources help you prepare, but your financing requires an individual review.