At the closing table, just before signing the final documents, many people are surprised to learn that there are additional funds needed beyond the down payment. Closing costs are typically set at 2 to 5 percent of the loan amount, and considering that the average home value in Boise is $508,258 (Zillow, as of June 30, 2026, up 0.9 percent from the previous year), even just calculating based on the remaining loan amount of $406,000 after a 20 percent down payment, closing costs can range from $8,000 to $20,000. This includes appraisal fees, title insurance, loan origination fees, and escrow costs.

There are significant regional variations as well. Even within Boise, the older neighborhoods in North End and the newly developed areas in the southwest have different price ranges. Other data may show the median sales price in Boise as $494,880, so it's essential to check the market rates at the neighborhood level when viewing properties.

The first thing to consider during the loan preparation stage is the type of loan. For FHA loans, a credit score of 580 or higher requires a 3.5 percent down payment, while a score between 500 and 579 requires a 10 percent down payment. Conventional loans can start at 3 percent for first-time homebuyers or those with an income at or below 80 percent of the area median income, with 5 percent being the common level. If you put down less than 20 percent, PMI will apply, but if you put down 20 percent or more, this cost is waived.

Interest rates vary significantly by credit score range. As of early July 2026, rates are 6.59 percent for scores above 780, 6.66 percent for the 760 range, 6.75 percent for the 740 range, and 6.91 percent for the 700 range. The overall average is around 6.6 percent (between 6.55 and 6.72 percent, Freddie Mac PMMS). A 40-point difference in credit score can lead to monthly payment differences of several dozen dollars, so checking your score before pre-approval is advisable.

Documents for pre-approval typically include proof of income for the last two years, two months of bank statements, pay stubs, and identification, along with a calculation of DTI (debt-to-income ratio). The lower this ratio, the more favorable the loan limit and approval speed will be. Between fixed-rate and ARM (adjustable-rate mortgage), if you plan to stay for more than five years, a fixed rate is stable, while if you might move within 2 to 3 years, an ARM with a lower initial rate may be worth considering.

The effective property tax rate in Idaho ranges from 0.49 to 0.69 percent, which means that based on a median home value of $376,000, the annual property tax is about $2,606, with an effective tax rate of 0.53 percent. This is lower than the national average of 0.91 percent, which may be comforting for those coming from other states. However, there are county-specific variations, so please check the rates for Ada County directly.

If the down payment is a concern, it may be worth looking into the IDPA program from the Idaho Housing and Finance Association (IHFA). This program offers up to 8 percent of the purchase price (up to $32,000 for a $400,000 home) in the form of a second mortgage, which can be forgiven after 5 to 10 years of residency. Eligibility requires a credit score of 620 or higher, a DTI of less than 45 percent, and an income below $170,000. Teachers, firefighters, nurses, police officers, military personnel, or veterans can receive a rate that is 0.125 percent lower through the Idaho Heroes second mortgage program compared to general assistance.

When making an offer, you also need to consider earnest money. Typically, this is 1 to 3 percent of the purchase price deposited into escrow, and in competitive neighborhoods like Boise, a larger amount tends to make the offer more seriously considered. After the contract, there is a home inspection period (usually 7 to 10 days) where the condition of the roof, foundation, plumbing, and electrical systems is checked. If any issues are found, it allows for price renegotiation or contract cancellation. It's also wise to calculate in advance whether you can cover any cash difference if the appraisal comes in lower than the contract price. Rate locks are usually set for 30 to 60 days, and if closing is delayed, extension fees may apply. The school districts in the Eagle or Meridian areas west of Boise tend to receive high ratings on GreatSchools, making them popular among Korean families, so be sure to check the assigned school before finalizing the contract. This is not legal or investment advice, and consulting a professional before finalizing any contracts is recommended.