Your Essential Guide to Buying Your First Home
We get it — there are a lot of steps. And sometimes you just don't know where to start. This guide walks you through every stage of the process, from figuring out what you can afford to holding the keys on closing day.
We understand it can feel overwhelming — but you don't have to figure it out alone. Realtor Jay Payson has guided buyers through this process across St. George, Washington, Hurricane, and the broader Washington County area. With each small step comes substantial progress toward the home you've been picturing.
Determine How Much Home You Can Afford
Before you start browsing listings, get a realistic picture of your financial situation. The goal here isn't to discourage you — it's to make sure you're shopping in a range that actually works for your life. Consider what your monthly payments look like today, and what they'll look like after you purchase.
- Income — Determine your stable monthly income, including any overtime or bonuses.
- Existing Debt — Add up credit cards, auto loans, student loans, and any other monthly obligations.
- Credit Score — Know where you stand. Scores above 680 put you in a strong position; some programs accept as low as 620.
- Closing Costs — Budget 2–5% of the purchase price for closing costs on top of your down payment.
★ Debt-to-Income Ratio (DTI) — Divide your total monthly debt payments by your gross monthly income. The lower this number, the stronger your position with a lender. Your loan officer will calculate this for you during pre-approval.
Get Pre-Approved
Getting pre-approved is the step most first-time buyers underestimate. It's easier than it sounds, and in the St. George market — where good homes move quickly — sellers expect to see it before considering your offer. A pre-approval letter shows you're a serious buyer with financing ready to go.
Your lender will evaluate your income, debts, credit report, and assets to determine the loan amount and type you qualify for. This is not a commitment — it's a green light to start shopping confidently.
- Proof of Income — Recent pay stubs, tax returns, W-2s. Self-employed buyers will need two years of returns and business documentation.
- Proof of Assets — Bank statements, investment accounts, and documentation of any large recent deposits.
- Credit Authorization — Your lender will pull your credit report as part of the pre-approval process.
- Employment Verification — Offer letters, employer contact, or recent paystubs showing steady employment history.
The Low Down on Down Payments
Your down payment is the amount you apply directly toward the purchase price. The remainder is financed through your mortgage. The size of your down payment affects your loan terms, monthly payment, and whether you'll owe private mortgage insurance (PMI).
Here's the part most first-time buyers don't know: you don't need 20% down. Not even close.
Conventional loans can require as little as 3% down. FHA loans typically require 3.5%. VA loans for qualifying veterans and active military require 0% down. Utah also has down payment assistance programs through the Utah Housing Corporation that can help eligible buyers cover upfront costs entirely.
It's also common — and perfectly acceptable — to use 401K funds, IRA distributions, or gift money from a family member as your down payment source. Your lender can walk you through the documentation requirements.
Home Loan Options
Not all mortgages work the same way. Understanding the differences helps you make the right call with your lender — and makes sure you're not leaving a better option on the table.
Fixed or adjustable interest rate. Not government-backed. Typically requires higher credit scores but offers competitive rates for qualified buyers.
Insured by the Federal Housing Administration. Lower credit score minimums, lower down payment (3.5%). Popular with first-time buyers.
For veterans, active military, and surviving spouses. No down payment required. No private mortgage insurance. One of the best loan products available.
Rural housing government loan. 0% down for qualified buyers in eligible areas. Has income and loan amount restrictions. Some Washington County areas qualify.
For loan amounts exceeding conforming limits set by Fannie Mae and Freddie Mac. Used for higher-priced purchases in luxury segments.
Combines the home purchase and renovation costs into a single loan. Good for buyers who find the right location in a home that needs updating.
★ Your loan officer will match your financial profile to the best available option. The right loan for you depends on your credit, income, military status, and the specific property you're buying.
House Hunting
Pre-approval in hand, it's time to search. In the greater St. George area — which includes Washington, Hurricane, Santa Clara, Ivins, and Cedar City — the inventory picture can shift quickly. Having a clear list of priorities before you start keeps the process focused and prevents decision fatigue.
Think about what matters most: commute distance, school districts, HOA vs. no HOA, new construction vs. resale, single story vs. two story, and which communities fit your lifestyle. The St. George area has a lot of variety — golf communities, STR-friendly neighborhoods, view lots, equestrian areas — and knowing your priorities upfront saves time.
★ Not sure where to start looking? Jay Payson knows the Washington County market deeply — from Coral Canyon in Washington to Sand Hollow in Hurricane to the established neighborhoods of St. George proper. Call or text to talk through which areas fit your situation: (435) 466-3784
Submit an Offer — and Know How to Negotiate
You've found the right home. Now your agent prepares the offer — and this is where having a dedicated buyer's agent makes a real difference. The offer isn't just a price. It includes the earnest money deposit, contingencies, requested closing timeline, and any seller concessions you're asking for.
If the seller counters, your agent can advise on strategy: whether to accept, counter back, or walk. This is the negotiation phase, and it requires someone whose legal obligation is to you — not the seller.
★ A listing agent's fiduciary duty runs to the seller. If you tour a home and work directly with the listing agent, that agent cannot negotiate in your interest — Utah law prohibits it in a limited agency relationship. Having your own buyer's agent costs you nothing and ensures someone is fully in your corner.
Get a Home Inspection
Once your offer is accepted, the clock starts on your inspection period. A qualified home inspector will go through the property systematically — this is your clearest look at the home's true condition before you close.
Don't skip it. Don't waive it to look competitive unless you fully understand what you're giving up. A thorough inspection protects your investment and gives you documented leverage if repairs are needed.
- Electrical systems — panel, wiring, outlets, GFCI
- Plumbing systems — supply lines, drains, water heater
- Cooling, heating, and septic systems
- Floors, ceilings, walls, and foundation
- Roof, gutters, and downspouts
- Ventilation and insulation
- Major appliances included in the sale
- Carbon monoxide or radon testing (recommended)
Renegotiate if Needed
Your inspector's report is a negotiating tool. If issues are found, you have options — and your agent can advise on the right approach depending on the severity of what was discovered and the seller's likely response.
Get an Appraisal
Your lender will require a professional appraisal before approving your loan. A licensed appraiser visits the property and determines its market value based on comparable sales, the home's condition, square footage, room count, lot, and amenities.
If the appraised value comes in at or above your purchase price, the loan moves forward. If it comes in below, you'll need to renegotiate the price, cover the gap in cash, or — depending on your contract — potentially exit the transaction.
★ In the St. George market, appraisals have generally supported purchase prices in established neighborhoods. In rapidly appreciating areas or for new construction, the appraisal gap is worth discussing with your agent before you make an offer.
The Loan Process — What to Expect
Once you're under contract, the loan process moves in stages. Expect requests for updated documents, questions from underwriting, and periodic updates from your loan officer. The best thing you can do is respond quickly and avoid any major financial changes — no new credit cards, no large purchases, no job changes — until the loan closes.
Complete your formal application with your loan officer. They'll confirm the loan type, rate, and terms and answer any remaining questions.
Your loan officer analyzes all documentation and confirms you fully qualify. An official pre-approval letter is issued at this stage.
The lender's team reviews your file in detail to make sure everything matches the loan requirements. This is often where additional documentation is requested.
Your loan documents and final numbers are prepared for signing. You'll receive a Closing Disclosure at least three business days before closing.
You sign the loan documents at the title company. Bring your ID and a cashier's check or wire transfer for closing costs. Then you wait for the keys.
Closing Day
All parties sign the final paperwork, funds are transferred, and ownership of the home is legally transferred to you. It's the finish line — and the beginning of everything you've been working toward.
A complete summary of all final charges, credits, and fees for both buyer and seller.
Your written promise to repay the loan — includes the loan terms, interest rate, and payment schedule.
The legally binding document that transfers ownership of the property from the seller to you.
Pledges the real property as security for the loan until it is paid in full.
You Did It. Congratulations.
Ownership is yours. The process that seemed overwhelming at the start is behind you. You took it one step at a time — and it worked. Welcome home.
The right lender depends on your loan type, timeline, and situation — and that varies more than most buyers expect. Jay works with a network of local lenders across Washington County who specialize in different programs: conventional, FHA, VA, manufactured home financing, and more. Contact Jay and he'll point you toward the lender best suited to what you're actually buying.