Step1
Examine your credit report of mistakes and clear them up before applying for a loan.
Step2
Interview different lenders, like credit unions, mortgage brokers (individuals and agencies that arrange financing from a variety of lenders), banks and online brokers to find the best deal for you. Look for the best rate and terms possible.
Step3
Idaho has no specific state-wide lending laws to protect consumers from predatory lenders (lenders that intentionally coerce consumers into contractual loans with unusually high payment terms and interest rates, often directed at uninformed borrowers or those with poor credit). Of course, the Home Ownership and Equity Protection Act of 1994 federal law applies to there and all of the United States.
Step4
Mortgage brokers are required to be licensed in Idaho, which requires three years of experience and that they hold a $10,000 surety bond. Ask for proof of their license.
Step5
Try to avoid Adjustable Rate Mortgages. In essence, if interest rates rise, so will your mortgage payment. If interest rates fall, your payment will stay the same or decrease slightly.
Step6
Explore the possibilities of Idaho and federal homeownership assistance programs. They are offered to veterans, disabled, low-income buyers, single parents, senior citizens, and rural home buyers, and include programs such as the Housing Choice Voucher Homeownership Program, the Self-Help Home Ownership Program, and Homeownership Vouchers.
Step7
Get pre-qualified for a loan with the lender of your choice. They will ask for paperwork such as pay stubs, investment information, and tax returns among others.
Step8
Know that Idaho is a community property state which means both spouses own half of the property regardless of who is paying for it.
Step9
Find a good, reputable, local real estate agent. They will help you find a home that fits your needs and budget.
Step10
Complete the loan transaction with your chosen lender and put an offer on your desired home.
Step11
Pay all legal and closing fees, and move in to your dream home. The lender will be in contact for payment within a few weeks.