A wise decision. Buying is cheaper than renting by far. Despite the current downturn, homes have appreciated an average of 4% per year since World War II and the gains are tax-free for most.  

You've got a lot to learn to be a fully-informed home buyer. Now in my 20th year representing buyers in the Boise area, I'm still learning every day. The market and the home-buying process never stops evolving.  I have much more to share, but I can only hit a few of the most important points here.

The Boise Home Market- Current Conditions.
Unemployment in the Boise-Nampa Metro is near a 20-year high. Nearly 10% of all homes listed in the Boise Metro are foreclosed homes. Nearly 30% of all homes listed in the Treasure Valley are subject to short sale and are in or near foreclosure. Sounds terrible doesn't it?  It could not be better if you are buying! These conditions have pushed prices to 5+ year lows in the Boise area, saving you hundreds of dollars per month. Plus, interest rates are near 40-year lows, making your payments even more affordable.  AND the discounts off market value are as big as I've ever seen.  This is the ultimate buyer's market!

Should you look at short sales?
Short sales are full of uncertainty and may not be right for you. On short sales, the seller's lender must approve the deal and this could take up to 6 months, if at all.  You could miss out on these historically low mortgage rates.  See my blog: Short Sale- What It Means For Buyers.

How Much Money Do You Need to Buy a Home (primary residence)?
  A very complicated question, as much depends on financing.  Keep in mind that you need $500 or $1000 earnest money deposit to make an offer on a home, which is credited toward your closing. The seller can pay closing costs, typically around 3% including loan fees and reserves, so we're talking about down payment that you need to cover. 

• VA Loans are zero down with no monthly mortgage insurance. I have helped many veterans get closing costs paid and ALL of the earnest money back at closing. Zero out of pocket.
• FHA loans are the easiest to qualify for and loan limits in the Boise area are just over $300k, making this the most common program used by home buyers today. FHA requires 3.5% down payment coming out of your own pocket, although it can be a gift or be borrowed from a 401k or against certain assets the lender must approve.
• IHFA (Idaho Housing) loans are for first-time (not owned in the last 3 years) buyers who make less than the median income and also require 3.5% down payment. Zero-down option! Idaho Housing also offers a small second loan to cover the down. See IdaMortgage Down Payment Assistance or ask me for information.
• Conventional (non-government) Loans require as little as $500 down with golden credit, but most home buyers will need at least 5% down payment.  This depends on the condition of the home, price range and other factors.

Buying a Home- Step #1 Get Qualified For Loan
Are you even in the ballpark? I can pre-qualify you with a short Q&A on the phone and refer you to a reputable local lender. For little more than an hour of your time and the cost of a credit report, a lender can tell you exactly what your options are in financing a home purchase. Before you look at any homes, you need to know:

• If you qualify and if not, what you need to do
• Which loan programs you AND the home must qualify for
• How much you'll need for down payment/closing costs to complete the purchase
• The price range of homes you can buy with a comfortable payment

Having a pre-qualification or pre-approval letter from your lender not only prevents you from wasting time on homes you can't buy, but also puts you in the strongest bargaining position with sellers.  Many sellers will not even consider your offer without proof of qualification, including foreclosed homes.
Do You Qualify For a Home Loan? Know the Math

Why so many people are losing their homes now.
If you can't make the payments, you lose control. In the last few years, most people did not plan for bumps in the road and bought more home than they could afford in a worst-case scenario. Many told themselves they could always sell it or get another job and, as today's economy proves, they were wrong. No one can foresee job losses, illness, market cycles, divorce, or the multitude of other problems possible over long periods of time. My advice? Don't borrow the maximum that you qualify for and start with a bargain price and a long-term outlook.  Step your way up to that dream home.  

Who is on your side in a real estate transaction?
The lender? Ha! That's a good one. The Title Company? No- impartial. The listing agent? No- under contract with seller. An agent working with the buyer? Not without a contract. In Idaho, only signing an Exclusive Buyer Representation Agreement holds your agent to the highest legal standard in representing your interests.

Learn more about home buying.  See my Blogs on: Buyer Beware, Searching the Internet for Homes

With your promise to use me as your agent (IF you buy), I will:

• Place your interests above my own with a willingness to serve and work hard
• Make you a fully-informed home buyer 
• Refer you to a reputable lender and help you compare loans and options available elsewhere 
• Once you are qualified, search daily for every home that meet your needs
• Spend my time and gas money to show you every home in your price range  
• Objectively analyze and provide research on each home of interest to you 
• Provide, prior to any offer, a good-faith estimate of closing costs and payments
• Help you negotiate the best possible price and terms
• Protect you through every step of the buying process
• Attend your closing to finish the job and hand you the keys
• After the sale, free advice and research and discounted fees when you are ready to sell.

Dan Rowe ABR CRS GRI
Broker of Dan Rowe Realty

(208) 866-3481

danrowe@cableone.net

Contact me to get started on the path to home ownership.

I serve the following areas of Idaho: Boise, Meridian, Eagle, Star, Nampa, Caldwell, Middleton, Mountain Home, Idaho City, Horseshoe Bend, Emmett, New Plymouth, Fruitland, Payette, Weiser, Homedale, Greenleaf, Marsing, Melba, Bowmont.