Buyer FAQ: Answers to the Most Common Home Buying Questions

Buying a home is one of the biggest decisions you will ever make. It is okay to have a lot of questions. Here are the most common questions buyers ask us at Red Sign Real Estate, along with straight answers in plain language.

How do I start the home buying process?

The first step is getting pre-approved for a mortgage. A lender looks at your income, credit score, and savings to tell you how much house you can afford. After that, you work with a real estate agent to find homes, make an offer, and close. Most buyers go from pre-approval to keys in 60 to 90 days.

How much money do I need to buy a house?

Plan on saving 3% to 20% of the home price for a down payment, depending on your loan type. You will also need 2% to 5% for closing costs. On a $400,000 home that could mean $12,000 to $80,000 for the down payment plus $8,000 to $20,000 in closing costs. Your lender will give you exact numbers based on your situation.

What credit score do I need to buy a house?

Most loan programs require a credit score of at least 620. FHA loans allow scores as low as 580 with a 3.5% down payment. The higher your credit score, the lower your interest rate will typically be. A competent lender can help you understand your options.

Does using a buyer agent cost me anything?

In most cases, buyers pay nothing out of pocket for their agent. The seller typically covers the agent fee at closing. You get a full-time professional in your corner at no direct cost to you. Your agent should be transparent about how their fee works before you sign anything.

How long does it take to buy a home?

Most buyers take 60 to 90 days from pre-approval to closing. That includes time to search for a home, get an offer accepted, complete inspections, and finalize your loan. In a competitive market like Utah County, moving quickly after finding the right home is important.

What is a mortgage pre-approval and do I need one?

A pre-approval is a letter from a lender that says how much they are willing to lend you. Most sellers in Utah will not accept an offer without one. It shows you are a serious buyer and helps you move fast when you find the right home. Getting pre-approved costs nothing and takes about 1 to 3 days.

What is the difference between pre-qualification and pre-approval?

Pre-qualification is a quick estimate based on information you share with a lender. Pre-approval is a deeper review where the lender checks your credit, income, and documents. Pre-approval carries far more weight with sellers. Always get pre-approved before you start touring homes seriously.

What happens during a home inspection?

A licensed inspector visits the home and checks everything from the roof to the foundation. The inspection usually takes 2 to 4 hours. You get a written report showing what needs to be repaired. Your agent then helps you decide whether to ask the seller to fix items, lower the price, or accept the home as-is.

What is earnest money and how much should I put down?

Earnest money is a deposit you make after an offer is accepted. It shows the seller you are committed to buying the home. In Utah, most buyers put down 1% to 2% of the purchase price. If the sale goes through, it counts toward your down payment. If the deal falls through under certain conditions, you typically get it back.

Can I buy a home with no down payment?

Yes, in some cases. USDA loans and VA loans allow qualified buyers to purchase with zero down payment. USDA loans are available in certain rural and suburban areas of Utah. VA loans are available to veterans and active military members. Your lender can tell you which programs you qualify for.

What are closing costs and who pays them?

Closing costs are fees paid at the end of the transaction to complete the home purchase. They typically run 2% to 5% of the loan amount and cover lender fees, title insurance, and escrow charges. In some cases you can negotiate for the seller to cover part of your closing costs. Your lender gives you a Loan Estimate that breaks down every fee.

Should I use a real estate agent or buy on my own?

Using a real estate agent costs you nothing in most transactions. Your agent has access to listings before they hit public sites, knows how to write competitive offers, and protects your interests during inspections and negotiations. Most buyers find that having an authentic, knowledgeable agent on their side is well worth it.

What should I look for when touring a home?

Check the big ticket items first: roof condition, water damage signs on ceilings and walls, foundation cracks, and the age of the HVAC system and water heater. Look at the layout and whether it fits your daily life. Your agent will point out things you might miss and help you think through what repairs could cost.

How do I make a competitive offer on a house?

Start with your agent pulling recent sales of similar homes nearby. Offer a price that reflects the market, not just what you want to pay. Write a clean offer with a pre-approval letter attached. In competitive markets like Utah County, response time and preparation matter.

What is the difference between new construction and an existing home?

A new construction home lets you choose finishes and comes with a builder warranty. It typically takes 6 to 12 months to build. An existing home is move-in ready and often in an established neighborhood. New builds require your own agent even though the builder has a sales team. The builder agent works for the builder, not for you.

Ready to buy a home in Utah?

Red Sign Real Estate serves Utah County, Salt Lake County, and Wasatch County. We have helped over 3,000 families buy and sell homes across Utah. Contact us today and we will answer every question you have, no pressure.