You can begin before you find a home. The first conversation is about your plans, timeline and questions.
THREE AMOUNTS TO KEEP SEPARATE
Your price. Your payment. Your cash.
Purchase price: what the home costs.
Monthly housing budget: the mortgage payment plus taxes, insurance, any mortgage insurance and HOA dues. Also leave room for upkeep and other expenses.
Cash needed: down payment, closing costs and prepaid items, with money left for your other needs.
Explore a monthly payment estimate →Build your cash-to-close worksheet →
Review my purchase budget ↗COMPARE YOUR PURCHASE OPTIONS
FHA vs. conventional loans →VA home purchase guide →Compare two mortgage offers →Your mortgage roadmap.
Set a comfortable budget.
Review what you can spend upfront and each month. Your own budget may be lower than the amount a lender is willing to approve. Use realistic estimates for the property’s taxes, insurance and other housing costs.
Discuss your income and funds.
Explain your employment or business income and the source of funds for closing. Ask which records to prepare. If you are self-employed, use the income and documentation guide to start the conversation.
Understand your preapproval.
Ask what has been reviewed, what remains to be verified and when the letter expires. Preapproval is conditional; the property and final underwriting still matter. It does not commit you to that lender.
Compare written loan offers.
When you have a property and loan offers to review, compare the same loan amount and term. Look at lender charges, credits, payment and cash to close. Use the Loan Estimate guide to organize your questions.
Prepare for closing.
Respond to document requests, confirm outstanding conditions and review your Closing Disclosure carefully. Ask about differences from the Loan Estimate before you sign. Confirm the funds and steps needed with your closing team.
What loan type should you ask about?
Conventional, FHA and VA loans have different eligibility and cost considerations. The useful comparison starts with your circumstances: the property, available cash, income, credit and any applicable service eligibility. Ask about the required down payment, mortgage insurance or funding fees, and the total cost of each option you can consider.
Explore home purchase financing with Jay →
Questions first-time buyers ask.
Do I have to put 20% down?
Not every mortgage requires a 20% down payment. The amount depends on the loan program and your eligibility. Ask how the down payment affects mortgage insurance, the payment and the cash you keep after closing.
Are closing costs part of the down payment?
They are separate costs. Your estimated cash to close accounts for your down payment, closing costs and applicable deposits, credits and other adjustments. Review the actual estimate for your transaction.
Can Jay help if I am still months away from buying?
Yes. Start with your timeline and the questions you want to resolve. You can work on a preparation plan before choosing a property or submitting an application.
Based in Layton, Jay meets clients by arrangement across the greater Salt Lake City area. Explore local mortgage help, or schedule a phone conversation wherever you are considering a property.
Sources: CFPB — home purchase budgeting, preapproval, loan types, and closing document review. General education; financing requires application, underwriting and applicable program eligibility.