My First Boise Idaho Home Loan – Boise Mortgage Loans

Most Iaho first time home buyers in Boise ask about paying an extra point to buy down the their FHA loan interest  rate, but are not sure how it works and is it a good idea?

In all of the examples on this site, I will be referring to a basic Idaho first time home buyer loan which is usually a FHA loan.  Guild Mortgage of Boise, offers all types of financing for all types of buyers.  This site is dedicated to Boise IdahoFirst Time Home Buyers.   

Stop and print out my sample good faith estimate.  It makes it much easier for first time buyers to follow along.

All interest rates are at a certain cost that changes everyday.  The cost is in the form of “points”.  

For example, on day the rate of 6% may be a 1/2 point and another day .75 or 1 point.  On the day a buyer decides to lock their rate, they can ask; what is the rate at “one point” and how much lower will it be if I choose to pay another point?

A “Point” is equal to 1% of the loan amount.  For example with a $100,000 loan amount, one point would be $1000.

There are 2 different kinds of points listed on a Good Faith Estimate; origination fee (line 801) and discount points (line 802). 

All FHA loans usually have a one point origination. 

If a buyer chooses to pay an additional discount point, the rate will usually be about 1/4% less.  With a $100,000 example, the additional point would be $1000.00.  When the rate is reduced by 1/4% the payment would go down approx $16.00 per month (100k example).  With a $16.00 savings per month, it would take about 62 months (5 years) to recoup the $1000 cost for the lower rate.  1000 divided by 16 equals 62

Boise Idaho first time home buyers usually ask: “How do know if it is worth it or not to pay additional points?”  If a first time home buyer plans on keeping the home for over 5 years, then it may be worth it.   Some people are not sure and usually go with just one point origination fee and keep the extra cash for new home furnishings.

Here is a sample GFE based on a $100,000 at a 6% 30 year fixed rate with the buyer paying an additional point. 

TAKE CONTROL AND UNDERSTAND YOUR GFE! IT’S YOUR MONEY!

I will be happy to email any GFE scenario with your specifics.

Check today’s rates for Boise First Time Home Buyers

To learn more about Guild Mortgage and myself please visit my other site.

Guild Mortgage –  Boise Home loans – Craig Ballhagen 208-713-3309

Idaho First Time Home Buyer Instant Gratification

Request for No Obligation Boise Home loan Analysis

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Boise Idaho first time home buyers need to take control of their purchase transaction and understand the difference between being pre-approved and pre- qualified for a home mortgage loan in Boise.  It is in the Idaho first time  home buyers best interests to be pre-approved.

When a first time home buyer is pre-qualified, they usually have had a conversation over the phone with an loan consultant and the basic qualifying questions are asked and no loan application has been completed.

After being pre-qualified, the Idaho first time home buyer is ready to go to the next step which is a COMPLETE BOISE LOAN APPLICATION  and actual verification of all of the information/documentation provided, by the first time home buyer,  on the mortgage loan application.  Until it is verified, I would not recommend shopping for a home quite yet. 

The Boise loan application verification process is done by the Idaho first time home buyer providing all of their required personal documentation. Once the the information is verified, the the Boise First Time Home Buyer is pre-approved and a approval letter can be issued.

 The most common type of Idaho first time buyer home loan, in Boise, is a FHA home loan.   The typical qualifying bullet points are

• 2 years of employment history-college or a trade school counts
• Total mortgage payment plus total monthly debt should not exceed 41% of gross monthly income-
• Middle credit score  needs to be 620 or more
• Co-signers are allowed (Mom and Dad)
• All of the down payment can be “gifted” be a relative.
• Seller can pay, up to 3% of the purchase price, towards closing costs and prepaid items. 

 These are just the FHA basics. For complete and more detailed qualification requirements, please send me an email.  Or you can go directly to the FHA  loan site an do your own research. 

BOISE IDAHO FIRST TIME HOME BUYERS  – TAKE CONTROL OF YOUR PRE-APPROVAL PROCESS!

Online application  is also available to first time home buyers

To learn more about Guild Mortgage and myself please visit my other site.

Guild Mortgage –  Boise Home Loans – Craig Ballhagen 208-713-3309

Idaho First Time Home Buyer Instant Gratification

Request for No Obligation Boise Home loan Analysis

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A zero down purchase home loan in Boise is the most popular among Boise Idaho Idaho First Time Home Buyers.  A no down program usually consists of 2 loans equaling the total purchase price.  The first loan is normally a FHA loan, 96.5% of the purchase price, and a small second mortgage for the remaining 3.5%. 

 The second mortgage in Boise, is usually the tax credit loan  that is offered through Idaho Housing Authority.  Idaho first time home buyers must have a middle score of 640 to qualify for the tax credit second.

The other part of a zero down purchase is who is paying for the closing costs?  Referring to the sample Good Faith Estimate for a $100,000 purchase price, the total closing costs and prepaid items are approx $3500. 

FHA loans allows the seller to pay up to 3% of the purchae price towards closing costs and prepaid items.  With this example, that would be $3000.  That means the Idaho first time home buyer would be paying for any amount above the $3000.

  This would be outlined in the purchase contract by your Real Estate Agent before the offer is made.

 Check today’s rates for Boise First Time Home Buyers

Guild Mortgage –Home loans Boise – Craig Ballhagen 208-713-3309

Idaho First Time Home Buyer Instant Gratification

Request for No Obligation Boise Home loan Analysis

To learn more about Guild Mortgage and myself please visit my other site.

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Boise Idaho first time home buyers need to take control of their home buying process and understand all documentation. 

  All Boise first time home buyers should have all of their documentation ready to go.  Here is a list of the basic items that a first time home buyer will need to provide.  Along with a complete loan application.    You can scan/email or fax to 208-489-2809

1. 30 Days most current paystubs
2. 2 Months bank statements on all assets (checking and savings) all pagess
3. 2008 and 2009 w-2′s
4. Home Owners Insurance information-agent and company
5. Last 2 years of federal tax returns for self employed
6. 3 years tax returns for First Time Home Buyers
7. Finally Home first time home buyer class with Idaho Housing Authority

It is in the best interests of a first time home buyer to have all of their personal documentation upfront.

Here are some other post that are related

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Guild Mortgage -Boise Home Loans  – Craig Ballhagen 208-713-3309

Boise First Time Home Buyer Instant Gratification

Request for No Obligation Home Buyer Analysis

To learn more about Guild Mortgage and myself please visit my other site.

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Boise Idaho First Time Home Buyers definitely need to be very well acquainted with their residential credit report.

Ordering your first credit report is a great first step.  Knowing what is on your credit report way in advance, is a great way for Boise First Time Home Buyers to take control of their financial future and be proactive.

There are 3 different ways to get started.

Print out a loan application, and cover sheet and fax to 208-489-2809.

or scan and email. CBallhagen@GuildMortgage.net or you can email me your Full Name, Current Address, and contact information.  NEVER EMAIL YOUR SOCIAL SECURITY NUMBERS TO ANYONE.  I will contact you by phone and you can give that information verbally. or You can schedule an appointment and I can check your credit at that time. 

After that I will provide you with a full residential credit report, at no cost,  for your records and discuss any adverse accounts that you may have.

Other posts like this one-

• The “New” Home Buyer Tax credit For Boise Idaho
• Boise Idaho First Time Home Buyers Mortgage Loan Application
• No HVCC for Boise Idaho First Time Home Buyers
• Boise First Time Home Buyers Leverage Tax Credit
• Boise Idaho Home Buyers Free Credit Report
• Private Mortgage Insurance Really Stinks!

Guild Mortgage –  Home loans Boise – Craig Ballhagen 208-713-3309

Idaho First Time Home Buyer Instant Gratification

Request for No Obligation Boise Home loan Analysis

To learn more about Guild Mortgage and myself please visit my other site.

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