Buying Your First Home in Southeast Idaho: The Steps

How do I buy my first home in Idaho Falls?

To buy your first home in Idaho Falls, you get your finances in order, get pre-approved with a mortgage lender, search and tour homes, make an offer, complete the home inspection and appraisal, and close. Thomas Roberts, a licensed Idaho real estate agent with Silvercreek Realty Group, guides first-time buyers through each step in Idaho Falls, Rexburg, Rigby, Ammon, Shelley, Blackfoot, and surrounding areas.

How much do I need for a down payment when buying my first home in Idaho?

The down payment depends on the type of loan you choose.

Conventional loans: A conventional loan is a mortgage that isn’t backed by the government. The traditional down payment is 20%, which also lets you avoid private mortgage insurance (PMI), an extra monthly cost that protects the lender. Eligible buyers can put down as little as 3% through Fannie Mae’s HomeReady and standard 97% loans and Freddie Mac’s Home Possible. With less than 20% down, mortgage insurance is typically required. Eligibility varies by program. HomeReady requires a credit score of 620, HomeReady and Home Possible limit household income to 80% of the area median, Fannie Mae’s standard 3% down loan needs at least one first-time buyer, and homeownership education can be required when every borrower is a first-time buyer. The home must be a one-unit primary residence.

Sources: Fannie Mae: HomeReady; Fannie Mae: 97% LTV options FAQ; Freddie Mac: 3% down payment (Home Possible); CFPB: What is mortgage insurance and how does it work?

Other loan options: FHA loans can start at 3.5% down, and FHA mortgage insurance is required on every FHA loan. VA loans (for eligible veterans and service members) and USDA loans (for eligible homes in qualifying rural areas) can require 0% down.

Sources: HUD: FHA loans; CFPB: What is mortgage insurance and how does it work?; VA: Purchase loan; USDA: Single Family Housing Guaranteed Loan Program overview (PDF)

Other costs: A down payment is only part of the cash you need. You should also plan for closing costs and a home inspection.

A mortgage lender can tell you which loan and down payment fit your situation. Thomas Roberts can help you plan the rest of the buying process.

Thomas Roberts is not a lender. Loan requirements vary by lender, so confirm the details with a mortgage lender.

What are closing costs and the home inspection when buying a home in Idaho?

Closing costs are the fees you pay to finish the purchase, separate from your down payment. The Consumer Financial Protection Bureau groups them into lender charges, optional points that lower your rate, required third-party services such as the appraisal and title insurance, local government fees, and prepaid items and deposits such as interest, the first year of homeowners insurance, and starting escrow deposits for property taxes and insurance.

Source: CFPB: What costs come with taking out a mortgage?

The home inspection and real estate agent fees are not required by the mortgage, so the CFPB lists them as other homebuying expenses. Your lender must give you a Loan Estimate within three business days of receiving your application, which shows estimated closing costs, the monthly payment, and the interest rate on a standard form, so you can compare lenders side by side. Bring yours to your consultation with Thomas Roberts. Idaho Housing’s down payment assistance can go toward closing costs for eligible buyers.

Sources: CFPB: What costs come with taking out a mortgage?; CFPB: What is a Loan Estimate?; Idaho Housing: Down Payment Assistance

Thomas Roberts is not a lender. Confirm closing cost details with a mortgage lender.

Do I need a real estate agent to buy a home, and what does it cost me?

You are not required to use a real estate agent to buy a home, but an agent helps with searching for homes, pricing, negotiation, and keeping contract deadlines on track. Thomas Roberts, a licensed agent with Silvercreek Realty Group, explains every step so first-time buyers know what they are signing.

Under rules that took effect August 17, 2024, an agent working with a buyer must have a written agreement with them before touring a home. That agreement has to state the agent’s compensation as a specific amount or rate, and it must say that broker fees and commissions are not set by law and are fully negotiable. The first consultation with Thomas Roberts is free, and he explains how his compensation works on that call, before you agree to anything.

Source: NAR: Settlement FAQs (written buyer agreements)

Can I get help before I am ready to buy a home?

Yes. Thomas Roberts offers first-time buyers a free 20 to 30 minute buyer consultation by video call, even if you are months away from buying a home. There is no obligation.