Question 1

How much do I need for a down payment?

Accepted Answer

The minimum down payment depends on the loan program and on whether you qualify. You'll still want extra funds for closing costs and reserves. Use our affordability and payment calculators, then we'll help you match your numbers to the right program on the Loans page.

Question 2

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

Accepted Answer

A pre-qualification is a quick estimate based on self‑reported info. A true pre‑approval means a loan team has pulled credit, reviewed documents, and issued a letter that sellers can trust. We recommend going straight to pre‑approval before you seriously shop so you know your numbers are solid.

Question 3

Should I fix my credit before I buy a home?

Accepted Answer

Small credit changes can change pricing. Before you wait a full year, ask a loan officer to model your current file versus a slightly stronger score. Buying now versus waiting is file-specific.

Question 4

What monthly payment should I target?

Accepted Answer

Instead of just shopping by price, we encourage you to shop by comfortable monthly payment. Start from your budget, plug it into our calculators, then walk that back to a price range. This keeps you from getting emotionally attached to homes that would feel too tight month‑to‑month.

Question 5

What types of home loans do you offer in Utah?

Accepted Answer

We originate conventional, FHA, VA, USDA, and jumbo loans when the property and file fit. A loan officer matches guidelines to your documentation, not a slogan about the 'best' program.

Question 6

How do I get pre-approved for a mortgage?

Accepted Answer

Start by completing our application or contacting a loan officer. We review income, credit, and assets to determine whether we can issue a pre-approval letter. That letter is not a commitment to lend.

Question 7

What are current Utah mortgage rates?

Accepted Answer

Mortgage rates change daily and vary by loan type, credit score, and down payment. A news 30-year average is not your Loan Estimate. Contact a loan officer for a current pricing discussion. This page is not a quote.

Question 8

How long does the loan process take?

Accepted Answer

Many first purchases close about 21–45 days after acceptance when the contract and file cooperate. That is a range, not a promise. Pre-approval, AUS findings, and clear-to-close are different documents.

Question 9

Can I get a mortgage if my income changes every month?

Accepted Answer

Often yes if you can document a pattern. Underwriters typically average overtime, bonus, commission, or 1099 income over a history rather than using the highest recent month.

Question 10

Can I use gift funds for a down payment?

Accepted Answer

Often, when the donor is eligible and the paper trail is complete. Program rules differ for FHA, conventional, and VA. Do not move large cash without asking how it must be sourced.

Question 11

Do you offer first-time home buyer programs?

Accepted Answer

Yes. We work with first-time buyer programs including down payment assistance and low down payment options available in Utah. Terms are published by the agency or investor, not as a special rate on this page.

Question 12

Can I refinance my existing Utah mortgage?

Accepted Answer

You can ask about rate-and-term, cash-out, and FHA or VA streamline refinances when your file and the property fit. A refinance is not a promise of lower payments.

Question 13

What is VA residual income?

Accepted Answer

Residual income is cash left after the proposed housing payment, counted debts, and estimated utilities. It is a separate VA test from DTI. Utah files typically use the West region table. Confirm the current published table rather than a blog dollar figure.

Question 14

How do I know if USDA is even available?

Accepted Answer

Run the property address on USDA’s published map tool and test household income against the current area limit. A city name is not a map result.

Question 15

Why would a file be declined after pre-approval?

Accepted Answer

A pre-approval is not a commitment to lend. Typical later fails include a job change, undocumented large deposits, new debt, or a property that does not meet the program’s standards.

Question 16

If I just went 1099, can that income count yet?

Accepted Answer

Usually not as a full average. Remaining W-2 wages and a documented history in the same occupation can still matter. Last month’s first invoice does not replace tax-year history.

Question 17

Does a $0 student-loan IDR payment mean $0 in DTI?

Accepted Answer

Not automatically. Investors calculate a payment from the credit report, a servicer statement, or a percent of the balance. SAVE and other federal plans have been in flux. Confirm the current investor rule.

Question 18

How do FHA MIP and conventional PMI actually end?

Accepted Answer

They are different products. Post-2013 FHA annual MIP is timed from original LTV (11 years or life of loan). Conventional borrower-paid PMI can often come off with equity under the Homeowners Protection Act.

Question 19

Is a streamline refinance a no-docs refinance?

Accepted Answer

No. FHA Streamline and VA IRRRL reduce documentation. Occupancy, payment history, and a net-benefit test still apply. Cash-out is generally not a streamline.

Question 20

Do large deposits in the last 60 days have to be sourced?

Accepted Answer

Yes. Purchase files typically include about 60 days of statements. Large deposits need a paper trail (payroll, documented gift, sale of an asset, or transfer between your accounts). Undocumented cash is a common condition fail.

Question 21

Should I wait until I can put 20% down?

Accepted Answer

Not automatically. Waiting can avoid conventional PMI; buying sooner with PMI is a cash-and-timeline trade.

Question 22

What is the difference between a pre-approval letter, AUS findings, and clear to close?

Accepted Answer

A letter is a snapshot for shopping. AUS (often DU or LPA) is an engine result for a program and credit file. CTC is an underwriter sign-off on this property as of that date. None of them is a guarantee you will fund.

Question 23

Can I buy a car after I am pre-approved?

Accepted Answer

A new auto loan usually appears on the next credit pull and changes DTI. Findings can flip. Ask before you sign.

Question 24

Is HOA part of DTI?

Accepted Answer

Required HOA dues are housing expense (front-end) and then sit in back-end with other counted debts. A modest note payment plus a large HOA can still fail the ratio.

Question 25

What will a first mortgage conversation ask, and what will it promise?

Accepted Answer

Expect occupancy, income type, debts, assets, and credit authorization when you are ready. A conversation does not approve you, lock a rate, or quote APR.

Question 26

Is DSCR the same as a full-doc rental loan?

Accepted Answer

No. DSCR typically qualifies on the property’s rent versus the payment. Full-doc qualifies the borrower with DTI and a rental worksheet. Occupancy still has to match use.

Question 27

What does a Utah REPC financing deadline do to my loan?

Accepted Answer

Due diligence and financing/appraisal are separate contract clocks, usually 5:00 p.m. Mountain Time. A lender timeline is not a REPC deadline. Missing written notice can put earnest money at risk. This is not legal advice.

Question 28

Will paying a medical collection raise my mortgage score?

Accepted Answer

Not as a promise. Bureau reporting of medical collections changed in 2022–2023, but many mortgage files still use classic FICO on a tri-merge.

Question 29

Can I get a mortgage with no traditional credit?

Accepted Answer

Sometimes, if you can document alternative references such as rent and utilities. That is not the same as weak traditional credit, and it is not assigned by who you are.

Question 30

If I sell a home with a VA loan, is entitlement restored?

Accepted Answer

Typically when the VA loan is paid in full and the property is disposed of under current VA rules, used entitlement is restored. That is different from keeping a VA loan and buying another. Check current VA rules for entitlement amounts.

Question 31

Does a CPA letter replace tax returns for a self-employed mortgage?

Accepted Answer

Usually no. Agency files are moved by returns and transcripts. A CPA letter and YTD P&L can support that stack.

Question 32

Is a no-closing-cost refinance free?

Accepted Answer

Usually the lender credit that covers fees is paid for with a higher note rate. Prepaids can still show as cash. Run break-even.

Question 33

What does a tri-merge credit report show?

Accepted Answer

Equifax, Experian, and TransUnion together. Mortgage files often use classic FICO and the middle score, not a monitoring-app number.

Question 34

Is earnest money extra on top of down payment?

Accepted Answer

It is usually credited at closing toward funds you already owe. Timing still matters: it leaves your account when the REPC is executed.

Question 35

If I still live in my house, is the rental I buy a second home?

Accepted Answer

Usually no. A house you will rent as a business is typically investment occupancy. A duplex you will live in is a house-hack. Do not relabel occupancy for pricing.

Question 36

Do compensating factors guarantee AUS will approve?

Accepted Answer

No. They are documented strengths that can appear in findings or a manual underwrite. They are not a second score.

Question 37

Should a veteran in a rural tract always take USDA?

Accepted Answer

No. VA, USDA, and FHA are different tests (entitlement, map and household income, MIP).

Question 38

Is an ITIN the same as an SSN for an agency mortgage?

Accepted Answer

Often no. Many agency and FHA files expect a valid SSN for credit and AUS. An ITIN-only file is typically a Non-QM overlay conversation. Citizenship is a legal eligibility topic, not a national-origin preference.

Question 39

Does biweekly extra principal beat a refinance?

Accepted Answer

They are different tools. Biweekly is one extra payment a year on the current note. A refinance changes rate, term, and costs.

Question 40

If I locked and rates drop, do I automatically get the lower rate?

Accepted Answer

No. A lock holds the quoted rate for the window. A float-down, if it exists, is a written lock-desk policy.

Question 41

Is a mortgage cosigner the same as a co-borrower?

Accepted Answer

If someone is on the note, they are underwritten as a borrower. Title (the deed) is a different signature from the note. A parent who only gifts is usually neither.

Question 42

Should I close a credit card before I apply?

Accepted Answer

Closing a card can raise utilization by shrinking available credit. AUS reads the tri-merge.

Question 43

Can I cash-out refinance a house I just bought with cash?

Accepted Answer

Sometimes, under an agency delayed-financing exception (a selling-guide exception, not a statute).

Question 44

Do authorized-user tradelines help a mortgage file?

Accepted Answer

They can appear on a tri-merge and still be discounted or excluded. They do not make you a co-borrower.

Question 45

Is an interest-only payment a teaser rate?

Accepted Answer

No. IO skips scheduled principal for a stated period. Payment shock when amortization starts is the risk. It is different from an ARM and from a temporary buydown.

Question 46

Should I recast or refinance after a lump sum?

Accepted Answer

A recast keeps the rate and re-spreads the payment. A refinance is a new note with costs. Run break-even.

Question 47

Can I finance a manufactured home or an ADU the same way as a house?

Accepted Answer

No. A HUD-code manufactured home and an accessory dwelling unit are different property types, with different title, foundation, zoning, and occupancy questions.

Loans & Financing FAQs

Loans & Financing Questions

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Loans & Financing FAQs

Loans & Financing Questions

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