Frequently Asked Questions (FAQ’s)
The first step to buying any home is to start with a lender. Here we will discuss what the long or short term goal is with the house and take an application which goes over job history, where you currently live, income, debt, and timeline.
The simple answer is that this varies on credit, purchase price, and what the goal is for the house.
With Idaho Housing (Idaho’s Bond program for getting into a home) you can put as little as .5% down and still qualify for a conventional mortgage.
Upfront costs are the costs you pay out of pocket once your offer on a home has been accepted. Upfront costs include things like earnest money, the inspection fee.
Your earnest money is the deposit you make to the seller that represents a buyer’s “good faith” to buy the home. This allows the buyer to reserve the house in a way, and gives extra time for the buyer to get financing and conduct title search, appraisal, and inspection before closing.
Choosing the right realtor has a huge impact on how fast and smoothly the home buying process goes. Your realtor will be responsible for setting up home inspections, negotiating seller concessions, and writing up offers and counteroffers. These are all major milestones and it’s crucial to have a real estate agent that not only knows your goals for the house, but has a firm grip on current market and can make the process seamless and smooth.
Seller concessions are a gift that a seller can offer to a buyer to help reduce closing costs of buying a home.
Generally, the seller of the home pays full commission for the services of both their own lists agent and the buyer’s agent. Buyer’s and seller’s agents typically split commission.
When going through this process it’s best to not accrue any new debt. New debt added can sometimes break a deal if your debt ratio exceeds guideline rules. In short, wait until your finished with the process before buying anything new!
Opening or closing lines of credit. Opening a new line of credit can mess with the underwriting of your loan and again push your debt to income ratios outside of eligibility. On the flip side, closing lines of credit means that you lose available credit and causes a high credit utilization ratio. This typically leads to a lower credit score which can either make monthly payments rise, or change the program of the loan all together. Unless instructed by your lender, it’s best to not change anything with your credit cards during the process.
Last, don’t quit your job! This may seem like a no brainier but it happens ALL THE TIME! Quitting or being fired from a job can kill a deal completely, or having to wait until the borrower is able to find a new job, obtain a pay stub, and confirm a verification of employment. This could take weeks or months, so again in short don’t quit!
FHA allows you to purchase a 2-4 unit complex with as little as 3.5% down. Freddie Mac (conventional loan) also allows a 2-4 unit owner occupied purchase with as little as 5% down.
You can put as little as 15% down on investment properties.
Yes, through what’s called a single premium you can finance the insurance dropping monthly payment dramatically. This is applicable to conventional products only.
Ideally, we would like credit to be 640 or up to qualify for a conventional loan. However, there are plenty of options for scores lower than 640.
Yes, we can perform what’s called a rapid re-score that usually takes 3-5 business days to improve the borrower’s credit score and limit costs to pricing.