The Most Important Step When Buying a New Home in Idaho

If you are thinking about buying a new home in Idaho but don't have a home loan pre-approval letter in hand yet, you might want to consider taking this step first. 


In the Treasure Valley, the number of buyers searching for homes has significantly outnumbered the amount of available homes for sale. Because of this demand, it has led to a competitive marketplace where home buyers often need to stand out to get their offer noticed and ultimately accepted by a home seller.


One way to show you are serious about buying a new home is to get pre-qualified or pre-approved for a home loan before starting your home search. 


Another benefit to having a pre-approval from a mortgage lender is simply knowing your housing budget. This will help you and your Realtor to know what price range to stay within so that your dream home doesn't become a nightmare. 


Freddie Mac states the advantages of getting a pre-approval in the My Home section of their website:

 

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

 

Another advantage of working with a local Realtor is the knowledge we have about the local lenders in the area. We know and work with the area's best home mortgage lenders who will be able to help you with this process. 


Once you have selected a mortgage lender, you will need to fill out their loan application and provide them with the information regarding your credit reporting, debt, income, work history, down payment and housing history.


A simple way to remember what a lender is looking for is called the; 4 Cs which help determine the loan amount you will be qualified to borrow:

 

1. Capacity: Which looks at your current and future ability to make your payments

2. Capital or cash reserves: This is the money, savings, and investments you have that can be sold quickly for cash if needed.

3. Collateral: The property that you would like to purchase is most often be the collateral the bank will use which considering your loan approval. 

4. Credit: What is your history of paying bills and other debts on time? 

 

Getting pre-approved for a home loan is one of the most important steps in the home buying process. It will show home sellers that you are serious about buying, and it in Idaho's current highly competitive market, will ensure you have the best chance and getting your offer accepted. 


In our experience, we find that many potential home buyers start looking for their dream home first, only to be left scrabbling to get a mortgage loan once they find the perfect home. In many cases, by the time they receive their approval letter, their dream home has been snatched up by another home buyer.


If you considering buying a home in Idaho, we highly recommend you start by getting your home loan pre-approval so that you will be ready to make your offer when your dream home pops up on the market. 


If you are ready to start browsing for homes for sale, click the link below to start your home search now: 

Click here to start your Idaho home search!