This article may contain references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services. Nonetheless, our opinions are our own.
Buying a home is an exciting and somewhat stressful event. From the fun of looking at properties to the task of applying for a mortgage, the process is very in-depth and can be daunting to both first-time homebuyers and seasoned buyers alike.
Here is some general information about applying for a mortgage in Idaho that should help set your mind at ease and get you on the path to owning your dream home.
Determine a Budget
The first thing you need to do when considering buying a property is to find out how much you can afford to spend. You may buy a SFH in White Spruce Pl under 300K but if you want to buy the same home in a top location like Boulder Point, you may have to be prepared to spend over million. Keep in mind that, this includes not just the purchase price of the home, but also the costs of any necessary repairs or renovations, closing costs, and ongoing costs such as property taxes and homeowners insurance.
It is important to note that even though you are approved for a certain purchase price by the bank or lender, that does not mean you have to spend that entire amount. It is still important to stay within your budget to avoid getting in over your head financially.
Choose a Lender
Before you begin the mortgage application process, you will need to choose a lender. While there are dozens of mortgage brokers, banks, and independent mortgage lenders out there, they are all not created equally so it is important to take your time and conduct your research.
From visiting your bank to asking for references from friends and family, be sure to interview multiple lenders before making a decision. When considering different lenders make sure to have a list of questions you may have on hand. This way you can compare aspects of the mortgage such as interest rates, terms, conditions, and more.
It is important to remember that though there are many options when it comes to obtaining financing, finding a mortgage lender who understands your needs and with whom you feel comfortable is the best way to go.
Choosing a credible mortgage company is also necessary, so look for reputable options in your area. It is also worth noting that depending on your line of work or financial status, there may be resources and programs available to you that could significantly improve the terms of your mortgage. For example, the Idaho Heroes Loan Program is available only to homebuyers who are Idaho residents and are essential workers.
Get Pre-Approved for a Mortgage
The next step is to get pre-approved for a mortgage. This process can be done through a bank, credit union, or mortgage broker. Getting pre-approved will help you know how much of a loan you can qualify for and also gives you an estimate of what your monthly payments will be.
Though not as in-depth as an official mortgage application, the pre-approval process is a vital part of the home buying process. This pre-approval acts as a sort of road map that helps you stay on track during the home buying process and avoid any financial surprises down the line.
Get the Official Mortgage Approval
Once you have found a home and have a signed agreement of purchase and sale, you will need to go back to your lender and apply for an official mortgage approval. This process is much like the pre-approval process however you will be required to show evidence and documentation to prove everything from income to employment history.
The mortgage approval process can take a few weeks, so be sure to factor that in when considering the timeline of your home purchase. An easy way to make this process as quick and seamless as possible is to have all the necessary paperwork in order so that are no delays along the approval process.
Close the Mortgage
Upon the closing date of your home, your lender or mortgage broker will advance the funds from your mortgage to your lawyer or to the title company. These funds will then be used to pay the seller of the property and any other outstanding fees or debts related to the purchase.
After this, you will officially be a homeowner! All that is left to do is enjoy your new home and make memories for years to come.
Things to Remember when Applying for a Mortgage
- Any outstanding debts or taxes will need to be paid off before you can be approved for a mortgage
- You will need a down payment of at least 5% of the purchase price of the home
- Be sure to get multiple quotes from different lenders to ensure you are getting the best deal possible
- Keep in mind that getting pre-approved for a mortgage is not the same as being approved for a mortgage
- Be prepared to provide documentation such as proof of income, employment history, and more
- Look for programs and resources that may aid during the mortgage application process. For example, Veterans may be eligible for a VA Loan while first-time home buyers may want to look into an FHA Loan.
Buying a home should be a fun and exciting experience. And while the financial aspect isn’t the most thrilling part of the process, it is a necessary one. With a little bit of research, preparation, and due diligence, obtaining a mortgage approval will be an easy task – one that takes you that much closer to homeownership!
Reviewed and edited by Albert Fang.
See a typo or want to suggest an edit/revision to the content? Use the comment form below for feedback.
At FangWallet, we value editorial integrity and open collaboration in curating quality content for readers to enjoy. Much appreciated for the assist.
Did you like our article and find it insightful? We encourage sharing the article link with family and friends to benefit as well - better yet, sharing on social media. Thank you for the support! 🍉
Article Title: Buying A Home in Idaho? Here Is What You Need To Know About Applying For A Mortgage
https://fangwallet.com/2022/08/30/buying-a-home-in-idaho-here-is-what-you-need-to-know-about-applying-for-a-mortgage/The FangWallet Promise
FangWallet is an editorially independent resource - founded on breaking down challenging financial concepts for anyone to understand since 2014. While we adhere to editorial integrity, note that this post may contain references to products from our partners.
The FangWallet promise is always to have your best interest in mind and be transparent and honest about the financial picture.
Become an Insider
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned. The opinions expressed here are the author's alone.
The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur including the potential loss of principal.
