How to Get a Mortgage in Idaho

Ready to buy a home? Getting an Idaho mortgage loan is not hard to do; you just need to know where to start. With a little planning, research, and patience, you can find a loan that is best for you and your finances. Follow these steps to getting an Idaho home mortgage loan.

Difficulty: Moderately Easy

Instructions

1. Examine your credit report of mistakes and clear them up before applying for a loan.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. Know that Idaho is a community property state which means both spouses own half of the property regardless of who is paying for it.

9. Find a good, reputable, local real estate agent. They will help you find a home that fits your needs and budget.

10. Complete the loan transaction with your chosen lender and put an offer on your desired home.

11. 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.

Tips & Warnings

• Shop around for the best interest rate. Just one quarter of a percent can mean thousands of savings over a 30-year mortgage.
• Do not be pressured into buying a home you don't want, the real estate agent may have another agenda.
• Have your potential home professionally inspected. Find problems before the deal is finalized.
• Before signing anything, be sure you thoroughly understand all the terms of the contract.
• Do not pay anyone to apply for a loan. Reputable lenders do not engage in this practice.
• Be sure that the title of the home is clear of liens before you purchase it.
• Record low interest rates of the recent past have led to an explosion of unethical lending and loan scams. You may wish to have an attorney review any documents before you sign them.