Did you know that it takes Americans an average of 6 and a half years to save for a mortgage? With housing prices rising consistently, it creates a challenging barrier for potential homeowners.

But after a long journey of saving, it’s finally time to find the property of your dreams. You’ve considered many destinations but decided Utah is where you want to buy a house.

However, one question remains unanswered: Is your credit score enough to secure a mortgage? Find out more in our guide below.

What Credit Score Is Needed to Buy a House in Utah?

To buy a house in Utah, you’ll need a credit score of at least 620 or higher. Your credit or FICO score gauges a consumer’s credit capabilities and determines whether different loans or credit will get approved.

Included in these credit checks are:

  • Accumulated debt
  • Current income
  • The expectation of continued employment
  • The amount you’re borrowing

Some lenders may let you know that your credit score is an essential factor for securing a mortgage. But it will vary on the loan program you decide to choose.

Steps to Buying a House

There are plenty of available homes in the Utah area, so if you have a credit score higher than 620, you should be ready to secure your property. However, there are multiple steps you’ll need to endure.

Formal Application

After speaking with a mortgage consultant and figuring out the best budget for a home, you’ll need to file a formal application.

It’s an online form spanning six pages, asking for identity verification and financial information. After submission, it takes about a day to get processed.

Disclosure

Next is disclosure. If your application is successful, lenders will review it and provide a loan estimate.

Once you receive the estimate, you’re required to sign the forms and send them back to your lender. Turnaround times are usually three days or less. But if you opt to send your documents through traditional mail, it can get delayed.

Home Appraisal

An appraisal is another crucial part of the process. It’s an unbiased estimate of your new home’s worth.

Lenders need to ensure the money homeowners are asking to borrow is on par with the current housing market.

Underwriting

Underwriting is one of the last steps of securing a home. It’s another deep dive into your financial information and loan application.

Underwriters typically look for:

  • High debt to income ratio
  • Credit issues
  • Last-minute large purchases

It takes about one to three days for the process to get completed.

Closing Disclosure

After the underwriting process, you’ll be conditionally approved for your mortgage and submit a closing disclosure. It’s the final hurdle of documents that need your signature before you’re handed the keys to your new home.

However, once you receive the documents, you’ll need to adhere to a mandatory waiting period before signing them. Once it passes, congratulations! You have a new home!

It’s Time to Buy a House

Your credit score is essential when you want to buy a house. However, once it’s above the required number, you’ll be able to go through the home buying process and secure the house of your dreams.

If you’re interested in learning more about how to buy a house and other aspects of homeownership, check out our other content.