|
Purchasing your first home can often be a daunting experience:
many questions arise that require answers from your real estate
team.
The Process
This section will familiarize you with the overall process. We provide
links to helpful websites and encourage you to peruse the information.
You will be better prepared for the whole experience—which is
about getting you into your first home!
Tour Properties
By this time, you may have toured properties of interest. If you
want more information or a tour, please contact us. If you haven't
already, now is a great time to contact a sales agent about the
property.
TIP: When looking for a sales agent, you want a
good match—this person will be your partner and ally for the next
few months. They will tour you around, write offers, and usher you
through the experience.
Qualify for a Loan
Now is a great time to get pre-qualified for a loan, which lets
you know how much money you can afford. Get pre-approved too so
you know you have the merit to pay off the loan. You will need a
clear picture of your financial situation, and should consider the
following:
- Run a credit report to make sure there are no surprises in your
credit history.
- Analyze your current financial situation: where the money comes
from and where it goes to.
- Analyze how a home purchase will affect your budget.
- Gather items such as: tax returns for the last three years,
current pay stubs, records of paid off credit history, and any
supplemental income. If self employed you will need business records
and tax returns for the last three years.
- Do not incur any new debts. Mortgages are based on debt to income
ratios (the amount you pay monthly versus the amount you bring
in) and a new debt can make the mortgage unobtainable.
Find a Mortgage Company
After you've gauged your financial situation, it's time to shop
around for a mortgage that suits your needs. A mortgage is a loan
secured by the property you are purchasing. Depending on your financial
circumstances, the amount of the loan can vary from a small percentage
to as much as 95% of the purchase price. We recommend the following
preferred lenders:
- Umpqua Bank: (541) 482-9611
- Ashland Mortgage: (541) 488-0818
- Home Lenders Mortgage: (541) 858-5830
- Par Mortgage: (541) 482-5886
They will help you determine what's most important to you: perhaps
buying a house with no money down, or obtaining the lowest interest
rate, or finding the right time-frame in which to pay off this loan.
We recommend you review out our online resources for more information.
Write an Offer
After selecting the mortgage that's right for you, your realtor
will write an offer. This means they draft a document which outlines
how much money you want to offer for the property. It also includes
information about your pre-approved loan. You will need to do the
following around the time your realtor writes the offer:
- Have the house appraised: An appraisal is an opinion of the
dollar value of the home you want to purchase. Virtually every
lender requires an appraisal before the loan is approved.
- Have the property inspected: An inspection evaluates the structural
and mechanical condition of a property.
- Review closing costs: These are charges paid to different entities
associated with your home purchase. They are usually 2 - 2.5%
of the total sales price. Costs may include: - application fees
- appraisal fee
- county taxes
- credit report
- discount points
- documentation fee
- escrow fees
- homeowners' association fees
- loan fees
- mortgage insurance
- original fees
- tax registration
- title insurance premium
|
