IDAHO First Time
Home Buyer's Guide

Pursuing the American Dream of Home Ownership is a big deal and many consider is a step into adulthood. And now millennials are joining the party—the average first-time home buyer in the U.S. is 31 years old. But before you buy, here are some things to do.

1. Assess your need

You don’t want to be buying a home just because you turned 31 or because your friends have started doing it.

2. It's a Math Question

Many people focus on the down payment when they think about buying a home. Yes, the down payment is usually a large chunk of money. But there are other upfront costs you need to think about—taxes, property insurance and closing costs for example.

3. Get Pre-Approved

In most cases, you will need government issued ID, a credit report (you can get free copies every year), a verification form from your employer, W-2 forms, federal tax returns and bank and asset statements.

4. Retail Therapy

A house is likely the largest purchase you’ll ever make, so treat it like other large purchases. That means you want to shop around as you would for a car, TV or couch.

5. Be Prepared to Walk Away

If you aren't comfortable with the purchase, you may have to leave a near-perfect house for someone else to buy.

 

Top Reasons to Get Pre-Approved Before Looking at Houses


The one thing you should absolutely do before you look at houses is get pre-approved for a home loan!. Shopping for a home without a pre-approval is like shopping at a high-end store without understanding what you can afford to pay. Keep reading to learn why you should get pre-approved first!

 

1-Sellers Want Buyers that are Pre-Approved

Nobody wants to waste time, including sellers.  They do not want to spend time with buyers who  have not made arrangements to be able to buy their home. They want to know that you are capable and have taken time to arrange financing to buy a home. Without a pre-approval in hand, they are taking your word for it. How do they know that you can afford the home? The pre-approval letter from your lender provides the proof that you can purchase the home.

2-You Can Stay Within Your Home Buying Budget

Why waste time shopping for a home you cannot afford? It is also much more enjoyable to know what your home purchasing parameters are. This will inevitably help prevent any type of letdown when you realize that you can’t afford the home you thought you fell in love with. Also, you’ll find a home faster by not looking at things you cannot purchase.

3-You’ll Know if You Have Any Barriers to Approval

You won’t know it until you apply if there are problems for you to solve prior to getting the loan closed. When the lender pulls your credit, they may notice issues that will prevent you from securing an approval. You can use this time to find out what’s wrong with your credit and see what you need to do to fix it. Sometimes it’s not your credit, but othere things like your debt to income ratio, lack of assets, or inconsistent employment that prevents you from getting an approval. By getting pre-approved, you can work on fixing those issues immediately rather than when it is too late.

4-You May Win a Bidding War

In a seller’s market, you could wind up in a bidding war. When there is high demand for a specific home, buyers may try to outbid one another. Having the pre-approval can:

  • Help you know your budget constraints when bidding on a home
  • Help the seller take your bid seriously

If you don’t have that pre-approval letter, you may find a seller that takes an offer lower than yours because that buyer has a pre-approval letter. It holds a lot of weight in the eyes of the agent when present your offer to the seller.

Getting a pre-approval before you shop for a home is one of the best decisions you can make. Pre-Approvals also help you get your bearings – you’ll know what you can afford and what conditions you have to satisfy to get the home loan. Sellers will have more respect for your offer and you may stand a better chance of buying the home you really want!

Home Loan Pre-Approval

Are you getting the best loan? | FREE No Obligation Quote

Ask a Professional

How much home can you buy for $300,000 in the Boise Area?

We created a spreadsheet that takes a look at what you will get for your money here in this area. First, here is how we did it. We did a home search for $290,000 to $310,000 and then looked at the average based on the results. Here is what we found; results from first week of November, 2018.

  Bedroom Baths SqFt Garage Bays Acreage Actual Median Price Price/SqFt
N Boise 2.4 1 1,046 1.8 0.16 $309,000 $294.72
NE Boise 2 2 1,260 0 0.22 $353,000 $301.59
SE Boise 3.6 1.8 1,637 1.6 0.15 $299,900 $186.92
Bench 3.5 2.4 2,016 1.5 0.193 $299,950 $157.17
SW Boise 3.4 3 1,970 2.4 0.27 $299,950 $301.67
W Boise 4 2.4 2,130 2.1 0.217 $305,000 $146.12
Garden City 4 3 2,889 3 0.43 $564,000 $195.22
NW Meridian 3 2.4 1,719 2.25 0.151 $308,000 $183.84
Eagle 3.25 2.1 1,582 2.25 0.19 $308,082 $182.05
Star 4 2.5 2,060 2.3 0.179 $299,900 $145.29
S Meridian 3.5 2.5 1,915 2.5 0.172 $304,950 $162.49
N Meridiam 3.35 2.38 1,799 2.6 0.186 $299,495 $170.05
Kuna 3.9 2.2 2,023 2.8 0.192 $306,405 $151.52
N Nampa 4.5 2.25 2,339 3 0.26 $309,980 $133.88
S Nampa 3.33 2.58 2,153 2.67 0.437 $296,125 $141.84
N caldwell 3.5 2 2,035 1.5 4.59 $299,000 $166.23
SW Caldwell 3.75 2.63 2,308 3.25 0.248 $191,990 $132.56
Lake Lowell 4 2 1,897 0 1.89 $309,000 $162.89
Horseshoe Bend 4 2.5 2,207 2 3.55 $295,900 $134.07
Emmett 4 2 1,550 2 1.05 $299,950 $193.52
Mountain Home 4 2 2,448 3 9 $290,000 $132.72
Contact Agent

Build Idaho: Trey Langford, Founder

Trey Langford
Founder
208.629.0217
Trey@BuildIdaho.com

 
5 stars - "Our experience with Full Sail/ Build Idaho was great from start to finish!"
How may we help you?NameTelephone #*Contact Emailsource

10 Tips to Buying a Home You Will Enjoy

1. If you can't stay put, don't move

If you can't commit to remaining in one place for at several years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner - even in a rising market. When prices are falling, it's an even worse proposition.

2. Get your credit and finances aligned so you can get a loan

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover. A mortgage professional can help with this.

3. Buy something you can afford to enjoy

The general rule of thumb is that you should aim for a house that costs about 2½ times your annual salary.  Try Build Idaho's mortgage calculator to get a better estimate on how your income, debts, and expenses affect what you can afford.

4. Many banking institutions require 20 percent down, but others don't so you may still qualify for a loan

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a small down payment.

5. Search for homes in a good school district

In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get a professional real estate agent to help

The Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Mortgage points vs interest rates

When picking a mortgage, you usually have the option of paying additional points -- a portion of the interest that you pay at closing -- in exchange for a lower interest rate. If you stay in the house for a long time -- say three to five years or more -- it's usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Get pre-approved

Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before making an offer

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you may consider making an offer that's about eight to 10 percent lower than what the seller is asking.

10. Home inspection

Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

Homes for Salein Boise Idaho

Ask a Question | Schedule a Tour | Make an offer

*Full Name:*Phone Number:*Email Address:
*I'm looking for:MessageSource