First Steps to Buying a House in Idaho

Whether you're deep in your research phase or just getting started, buying a home for the first time can be as overwhelming as it is exciting. From researching neighborhoods to finding the right lender, making sure you're within your budget, and navigating the negotiation process, there can be a lot to consider throughout your house hunting journey. And with the Idaho real estate market busier than ever, it's important to know the steps you can take to get ready (or even get ahead).

Keep reading for our local team's guide on the first steps to buying a home in Idaho.

Steps for buying a home in Idaho

1. Decide if you're ready to buy a home

2. Find a real estate agent

3. Check in on your finances and savings

4. Calculate your budget

5. Find a lender and decide on the right kind of mortgage

6. Get pre-approved for a mortgage

7. Start house hunting

8. Make an offer!

9. Closing time

Decide if you're ready to buy a home

Before you start looking at houses, it's important to decide if now is the right time for you to buy. Buying a house involves commitment and responsibility—not only financially but also in terms of lifestyle, too. Even before you start looking at your budget, ask yourself if you can commit to staying in the same area for at least a few years. Are you ready to take on home maintenance and other responsibilities that come with owning a house?

Find a real estate agent

Once you know that you're really ready to buy, the next step is to partner with a local real estate agent. Although you can do your research online and even find potential listings, working with a real estate agent can help you get the inside scoop on neighborhoods, market trends, early listings, and more. Plus, when it's finally time to make an offer, your agent can take the lead.

Especially if you're moving to a new city, it can also be beneficial to work with an agent who's lived in the area for a long time. Local teams—like Stephanie Reed Real Estate—will almost always have a better understanding of neighborhoods and community culture, making them the perfect guide for homebuyers putting down roots in a new place.

Check in on your finances and savings

With a real estate agent on your side, the next step is to check in on your finances—specifically your savings, debts, and any credit issues. If you've already been saving for a home and know you have enough to cover the down payment and closing costs, you can skip to the next step.

If not, the first step in saving for a home is to make sure you have enough for your down payment, which is typically between 5-20% of the total home price. You'll also need to be ready for closing costs, which may range from 2-5%. It's important to factor in these amounts when planning your budget and start saving as soon as possible.

Calculate your budget

Depending on your existing finances, you can start calculating what type of home might be best for you. A conservative rule of thumb is that you should spend no more than three times your annual income. With that in mind, it's also important to consider your other debts, such as student loans, credit card debt, and car payments.

Find a lender and decide on the right kind of mortgage

Now that you know how much house you can afford, it’s time to decide what kind of mortgage is best for you. In Idaho, the most common types of mortgages are fixed-rate, adjustable rate (ARM), and interest-only loans. Fixed-rate mortgages offer a steady monthly payment while ARMs start off with lower rates but can go up over time. Interest-only loans are for those who want a lower initial payment, but the rate will increase after the interest-only period expires and may not be ideal for first-time homebuyers. Your lender can help you decide which option is best suited for you or your family.

Get pre-approved for a mortgage

Once you know what type of mortgage works best for your budget, it’s time to get pre-approved. After you apply and are approved by a lender, you'll receive a letter showing the amount they're willing to lend you and at what interest rate. Pre-approval is an important step in the home buying process because it gives you extra power during negotiations and also helps sellers feel more comfortable accepting your offer. Since it can take some time to get approved, it’s best to start this process as soon as you can—don't wait until you're house hunting and have already fallen in love with a home!

Start house hunting

Now comes the fun part—house hunting! This is also where your real estate agent can be a huge help. Based on your budget, requirements, wishlist, and deal breakers, your agent can suggest neighborhoods, give feedback on homes you're interested in, offer insight into any potential issues or red flags, and more.

Make an offer!

Once you've found the perfect home, it's time to make an offer! Your real estate agent will be able to negotiate with the seller based on your budget and pre-approval letter, and they'll also be able to answer any questions you have about the process. After your agent has submitted the offer and both parties have mutually agreed on any terms, you're officially under contract.

Closing time

If the seller accepts your offer, congratulations! You're one step closer to becoming a homeowner in Idaho. Now it's time to get through the closing process. Your real estate agent and lender will be able to guide you through this part of the homebuying journey, provide answers to any questions you have, and help you make sure everything goes smoothly.

Conclusion

Buying a home is exciting, but it can feel overwhelming, too. Breaking the important to-do items into bite-sized steps is one of the best ways to make the process feel more manageable, and you can never be too prepared. With experienced local lenders and real estate agents, first-time homebuyers in Idaho can make the journey a smooth and successful one. If you're considering a move to the Sun Valley, Idaho area, we'd love to be your guide in what's next. Contact our team to learn more about our community, resources, and next steps for buying a home in Sun Valley, Ketchum, Hailey, or Bellevue. Looking elsewhere? We're happy to connect you with agents in other areas as well.

Happy house hunting!