What to consider when hunting houses for sale in Salt Lake City

Uptown or downtown, find a home that will suit your lifestyle and budget.

Finding the best place to live is a bit like finding a life partner. You’ll just know. As you search houses for sale in Salt Lake City, KSL Homes has some tips to help you find that just right fit. You’ll have to figure out the relationship part on your own.

What to look for in a home

Take a drive around Salt Lake City and you’ll see there’s a panoply of living spaces. Head east and you’ll find neighborhoods full of classic homes. Stay downtown and you’ll discover modern and contemporary possibilities. Deciding which one to choose will depend on your priorities.

Is the neighborhood a good fit? Review factors such as schools and neighborhood walkability.

Lifestyle

Before shopping houses for sale in Salt Lake City, consider your lifestyle. Do you want your children to walk to school? Are open green spaces (i.e. parks and trails) important to your mental health? Do you need a soda or coffee shop right around the corner?

Location

Choosing a neighborhood is as important as the home itself. Where will you be most comfortable? If quirky shops and restaurants are a must, you might enjoy living in the vibrant Sugar House neighborhood. If you love historic homes, the Greater Avenues, Capitol Hill or Yalecrest communities might be more fitting.

Proximity to a job is often an important factor, too. If you work from home, you may not need quick access to the interstate. But a daily office worker may appreciate living near public transportation in areas such as Marmalade or Rose Park.

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Consider the amenities you want in a neighborhood.

Cost

Affordability is perhaps the largest consideration when looking for a home. The reasons you might consider a neighborhood are the same characteristics that affect home prices.

• Location
• Age and condition
• Square footage
• Upgrades
• Market

As tempting as a 4,000-square-foot house may be, if it’s out of your price range, it won’t look so good once those mortgage payments are due. Use the KSL Mortgage Calculator to determine how much house you can afford. Financial experts agree, your mortgage payment shouldn’t be more than 28% of your gross monthly income. Be sure to factor in other costs of home ownership, such as insurance and maintenance.

A local real estate agent can help you narrow down your search. They should have a good idea of areas and properties that will fit your budget. 

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Getting a mortgage

The higher the interest rate on your home loan, the higher your monthly payment will be. So, it makes sense to get the lowest rate possible. To determine your rate, lenders will look at your overall debt-to-income ratio.

For the best rates, your monthly debt obligations (including the new mortgage) should equate to less than 36% of your gross income. Lenders may allow a DTI of up to 43%, but you’ll pay a much higher rate for it. Typically, the lower your ratio and the higher your credit score, the lower your interest rate.

Down payment

Ideally, you’ll have 20% for a down payment. If you don’t have that much saved up, you’ll likely need to add private mortgage insurance. PMI protects the lender from losses if you default on your loan. This additional cost is tacked onto your monthly payment until you own 20% of the property’s value.

Choose a neighborhood that fits your lifestyle.

Home ownership expenses

Although you may want to sink all your savings into buying a home, it may be wise to set some cash aside for future expenses. If you’re moving into a new house, for example, you’ll likely need curtains and appliances. New yards need landscaping. For existing homes, you may want to replace carpeting or fixtures.

Also, as a homeowner you are responsible for all of your utilities, repairs and other household expenses. If the air conditioner quits, there’s no landlord to call. 

Finding your home

Search for your perfect match on KSL Homes. We have listings for historic and new houses for sale in Salt Lake City and all across the state. Learn about other neighborhoods in Utah that may fit your lifestyle on the KSL Resource page.