With interest rates below 4% is now the right time to purchase a home?  For renters or move up buyers you should look at the numbers and see if the fit is good for you.

For example, what can you get for $100,000?  And what would your payment be?  In Meridian, Kuna and Star you could purchase a 3 to 4 bedroom, 1500 sqft (approx) home.  In Boise, it varies greatly by the area you want to be in, but you can also purchase a home of this size for $100,000.

Payment Scenario for $100,000 home:

Interest rate of 3.875% Principle and Interest payment

15 year payment                              30 year payment

7.33/$1000 = $733/mo (P&I)        4.70/$1000 = $470/mo(P&I)

Adding taxes and Insurance of approx. $150/mo

$883/mo total payment                $620/mo total payment

Most people would agree that a payment of $620/mo for a 1500 sqft home is less than what you can rent for.  Plus you get the advantage of never having your rent raised and tax advantages of being a home owner.

What if you don’t have enough money for closing costs or down payment?  You should talk to a lender about various financing options.  In Kuna and Star, you can still get a Rural Developement loan that is zero down.  You may qualify for other local neighborhood housing loans or possibly VA.  A lender can look at your situation and advise you on the best options for you.  In Meridian and Boise, FHA only requires 3.5% down.

I’ve attached a link to another article titled:  ‘Why Buy a Home’  that was written by REALTYTIMES:


For many potential homeowners NOW really could be the right time to purchase a home and lock in a fantastic interest rate for the life of your loan.

Please contact me for names of lenders that can give you the financing options for your situation.

Why is it so important as a buyer to be pre-approved by a lender prior to looking for homes? 

One of the biggest reasons is that you want to make sure that you are looking in the proper price range for your home.  You may have a price set in your head that is too high or too low based on your debt to income ratio and the interest rates.   Get the facts ahead of time so you are not disappointed when you are ready to make an offer. 

 Another reason to get pre-approved is that you may not get the home you want if you cannot put your offer in quickly!  In this market, short sale properties and bank owned properties require a pre-approval letter with offer submission.  If you are ready to look for a home, you need to be pre-approved.  The banks require it.  You don’t want to have another offer come in at the same time with a pre-approval letter and beat your offer out. 

Is it hard to get pre-approved for a loan?  NO!  That is what is so great.  You can talk to most lenders on the phone and complete a telephone application or an online application.  They will analyze your information and pre-approve subject to submission of documents ( in most cases you will get a pre-approval letter while you are gathering your documents).  The lender will also typically pull your credit so they can get a clear picture of your debt to income ratio as well as your credit score.  This will tell them what kind of interest rate they can offer so you can make a decision on the price range of homes to look at.  The counseling session with your loan officer will help you work together so that you are looking at homes that fit in your budget and loans that are the best fit for you and your situation.

If you are thinking about purchasing a home and do not have a lender, let me know and I will send you some names.  A good loan officer will walk you through this process quickly and efficiently.

Be a confident pre-approved buyer and be ready to make an offer on the home you want!