Buyers April 8, 2021

What Do I Need To Purchase My First Home

Do you have the dream of one day owning your own home?

You’re likely not as far out as you think!

We’ve all heard the saying before, “real estate is the best investment you can make”, but where do you even start?

First, take into consideration these three factors that are crucial to getting pre-approved to purchase a home.

  • A 620+ credit score
  • Savings for around 3% down (depending on which loan program)
  • 45% or less debt-to-income ratio

The great news is, if you’re an Idaho resident there is a program that allows you to save for all costs that go into a home purchase. The Idaho First-Time Homebuyer Savings account allows you to save up to $15,000 per year ($30,000 if married) to go towards your downpayment, closing costs, and anything else associated with purchasing a home. The best part about this program? Say you save $5,000 for the year, you can deduct that from your income during tax season to save you a ton of money! EVERYONE SHOULD TAKE ADVANTAGE OF THIS, reach out and we can get you on your path to homeownership.

If you want a rough estimate on how much you can afford do this calculation:

Divide your yearly salary into 12 (months) |  $50,000 / 12 = $4166.66

Multiply that number by 45% | $4,166.66 * .45 = $1,874.99

Now subtract all of your monthly debts (car payment, etc.) | $1,874.99 – $350 (car) = $1,524.99

Lastly, multiply that number by 177 to see how much “home” you can afford! | $1,524.99 * 177 = $270,000

Again, this is all an estimate. If you’re looking for the correct number that you can afford reach out and we can get you in touch for no cost. If you can avoid a high car payment and other monthly debts it can dramatically boost your purchasing power. Without the $350/mo car loan this buyer could approximately afford a $330,000 home!


As a full-service real estate company we offer every step that it takes to get the keys to your new home. From getting you in touch with our team of lenders to putting in offers on your dream home, we hope you choose Hillcrest Real Estate with Amherst Madison.

Jake DeMeerleer