First-time buyers

Your first purchase sets the pattern for the next one.

Down payment, credit, contingencies, and total housing cost — explained without assuming you've done this before.

Review My First Purchase Estimate What You Can Afford

Direct answer: first-time buyers face a specific set of challenges: a down payment with no prior home-sale proceeds to draw on, unfamiliar terminology and paperwork, and a market where some competing buyers may waive protections you probably shouldn’t. None of that means you can’t buy well — it means each of the factors below deserves a direct answer before you write an offer.

What to understand before you shop for a home

Down payment source

Savings, a gift from family, or a down-payment assistance program — the source can affect loan options and required documentation.

Credit profile and rate impact

Credit score affects both whether you qualify and what rate you're offered — worth reviewing before you start shopping for homes.

Total monthly housing cost

Principal, interest, taxes, insurance, and HOA dues together — not just the number a lender pre-qualifies you for.

Cash reserves after closing

What's left over after the down payment and closing costs for moving expenses, repairs, and the unexpected.

Pre-qualification vs. pre-approval

A pre-qualification is a rough estimate; a pre-approval involves actual documentation review and carries more weight with a seller.

Contingencies

Inspection, appraisal, and financing contingencies exist specifically to protect a buyer with no prior transaction experience to fall back on.

Contingencies protect you until they're waived

Inspection, appraisal, and financing contingencies exist for a reason.

An inspection contingency lets you renegotiate or walk away over problems a professional finds. An appraisal contingency protects you if the home doesn’t appraise for the contract price. A financing contingency protects your earnest money if your loan doesn’t ultimately fund. Waiving any of these can make an offer more competitive — it also means you personally absorb the risk that contingency existed to cover.

Staged living room interior with fireplace

Downside cases

Where first-time purchases most often go wrong.

Using every available dollar for the down payment leaves no reserve for moving costs, immediate repairs, or a slow month at work right after closing.
Waiving an inspection or appraisal contingency to compete for a home transfers real risk to you — understand exactly what you’re giving up before doing it.
Focusing only on the mortgage payment and missing the full monthly cost — taxes, insurance, HOA dues, and maintenance — can strain a budget that looked fine on paper.

National considerations

Loan programs, minimum down payments, and mortgage insurance requirements are set nationally and shift with broader lending conditions.

Utah considerations

Competing inventory and typical offer terms vary by Utah county along the Wasatch Front — a first-time buyer strategy should account for the specific market you’re shopping in, not a statewide average.

Tools to run before you make an offer

Mortgage Affordability

See the maximum price your income and debts actually support. About 5 minutes.

Use the Calculator

Loan Program Comparison

Compare conventional, FHA, and VA financing side by side. About 5 minutes.

Use the Calculator

Points vs. Lender Credits

Find your break-even point on paying for a lower rate. About 3 minutes.

Use the Calculator

Frequently asked questions

How much down payment do I actually need?

It depends on the loan program — some conventional and FHA programs allow less than 20% down, though a smaller down payment typically means mortgage insurance. Various first-time-buyer assistance programs may also reduce the cash needed, but eligibility and terms vary and change — confirm current details directly with a lender.

What is earnest money, and do I get it back?

Earnest money is a deposit showing you're serious about the purchase, credited toward your down payment or closing costs at closing. If you cancel for a reason covered by your contract's contingencies, it's typically returned; canceling outside those protections can put it at risk.

Should I get pre-qualified or pre-approved before looking at homes?

A pre-approval, which involves an actual review of your income, credit, and debts, gives you a more reliable number and carries more weight with a seller than a pre-qualification, which is a rough estimate based on unverified information.

What if I don't have a large down payment saved?

Lower-down-payment conventional and FHA programs exist, and family gift funds or down-payment assistance programs may also help — a lender can walk through what you specifically qualify for.

Can family help with my down payment?

Often yes, as a documented gift, but lenders have specific requirements for how gift funds must be sourced and documented — this needs to be set up correctly with your lender in advance, not handled informally.

Author: Todd McClean, Realtor® | Real Estate Investment Strategist, Mountainland Realty, Inc.. Reviewed July 21, 2026. This page provides general real estate information and is not legal, tax, accounting, lending, securities, commodities, or financial-planning advice.

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