For those looking to buy their first home in Salt Lake City, the first hurdle they encounter is the amount of the down payment itself. According to Zillow data as of May 31, 2026, the median sale price in this area is $605,333, and when looking specifically at single-family homes, the median price rises to $685,000 as of June 2026. If you plan to prepare 20% for the down payment, that means you would need over $120,000 based on the $605,333 figure. It's natural to feel overwhelmed by this number.

So, does that mean you can't buy a home if you can't come up with 20%? Not at all. FHA loans can start as low as 3.5% if your credit score is 580 or higher, and Conventional loans can go as low as 3% for first-time homebuyers or those with an area median income of 80% or less. However, it's good to know in advance that if you put down less than 20%, you'll have to pay a monthly mortgage insurance premium known as PMI.

One of the most frequently asked questions is about property taxes. The effective property tax rate in Utah is reported to be an average of 0.53%. For owner-occupied homes, there is a Homestead Exemption that reduces the taxable value by 45%, which is a unique feature of Utah, meaning that the actual burden is assessed at only about 55% of the appraised value. Thanks to this exemption, the median property tax in Utah is around $2,412 annually, despite the median home price exceeding $600,000.

Next, you might wonder if there are programs to assist with the down payment. The Utah Housing Corporation operates a deferred down payment assistance program that supports 3.5% of the first mortgage, up to a maximum of $27,500, with a 30-year fixed rate of 3.50% on a deferred simple interest basis. First-time homebuyers purchasing new homes can receive up to $20,000 in interest-free, forgivable assistance through the First-Time Homebuyer Assistance Program, but it's important to remember that there is a purchase price limit of $450,000.

How much should you prepare for your credit score? As of early July 2026, a score of 780 or higher qualifies for an average interest rate of 6.59%, while scores in the 760s, 740s, and 700s correspond to rates of 6.66%, 6.75%, and 6.91%, respectively. Even a single step down in score can lead to a significant difference in total interest over 30 years. Checking your credit report before applying for pre-approval is a good first step.

DTI, or debt-to-income ratio, is also an essential criterion for loan approval. Most lenders prefer that total monthly debt does not exceed around 43% of income, which includes future principal and interest payments, property taxes, and insurance premiums. It's also worth considering whether you plan to move again in a few years. If you expect a short residency, an ARM (adjustable-rate mortgage) with a lower initial rate may be advantageous, but if you plan to stay long-term, locking in a 30-year fixed rate can provide stability in monthly payments.

The documents needed for pre-approval typically include W-2 forms for the last two years, recent pay stubs for the last two months, bank statements, and identification. If you are self-employed, you will also need to provide tax returns. Having these documents ready can give you an advantage in competitive offers.

Closing costs are expected to range from 2% to 5% of the loan amount. For a home priced around $600,000, this could mean between $12,000 and $30,000. This includes appraisal fees, title insurance, initial escrow deposits, and loan origination fees. A home inspection is also a necessary step before closing, and checking the structure and condition of the systems in advance can help reduce unexpected repair costs later.

If you are coming from out of state, it can be easy to feel reassured by Utah's low property tax rate, but insurance premiums and HOA fees can vary by area, so it's wise to check those separately. The tax rates and assistance program conditions mentioned here can vary by county and the time of application. This is not investment or legal advice, and it is recommended to consult with lenders and real estate professionals before finalizing any contracts.