Are you ready to buy your first Portland home? Buying a home differs by state and city. The basics are usually similar in terms of what is needed to ready yourself to buy but elements of buying in the transaction vary depending on state and city requirements, plus several other factors. Don’t worry, we’ll explain. If you’re moving to Portland and intend to buy or are preparing to buy your first home here, you may have a long list of questions. It’s difficult to predict what your experience will be like but we can give you the basics of preparing to buy in Portland and hopefully answer some of your questions. This list is a good place to start. Your buyer’s checklist will change once your offer has been accepted. We’ll follow-up with a checklist for after your offer is accepted so you can get an idea of what to expect.
Getting ready to buy in Portland
Preparing to buy is the first step in owning your home in Portland. Looking at your financials to see what you’ll qualify for is one of the most important first steps. We talk you through this process so don’t worry if you’re not a financial wizard. We know what you need and can explain it to you. We generally work with preferred lenders. If you have your own trusted lender, that’s great too. Any good lender can help you take the steps needed to buy. It’s more than filling out an online application and getting prequalified.
You’ll need to:
Find an agent & lender
It goes without saying that working with a skilled broker in Portland is invaluable to your home buying experience. Obviously, we want to work with you and have the chops to do it but it’s important to look around and know what you’re getting into when settling on a real estate broker. If you know people who have bought in Portland, check in with them for a referral. If you’re looking online for resources, go with realtors who have been reviewed and have a good reputation. Before meeting for the first time, compile your questions and ask them of your potential realtor. Are they listening to you and answering your questions? If they don’t know the answers, are they following-up with you to get your questions answered? A real estate broker represents you in the home buying process. They’re here to walk you through every step and assist you in making choices in the process. You want to work with someone who is going to be there, whether it’s one person or a team, and someone who is attentive, knowledgeable, easy to talk to and makes you feel comfortable.
There will always be brokers out there offering up deals and discounts from the get-go. It’ doesn’t mean they’ll have your best interest at heart in the transaction. Any good realtor will recommend the following steps in preparing you to buy a home in Portland and will help you save money throughout the transaction. That’s our job. If you’re not quite ready, it’s okay. When you’re ready, we will be ready too. We can recommend our preferred lenders to you based on your situation and our experiences with them. A lender helps you with the lending process and will have advice for you about how to prepare, plus offer loan programs that suit your specific situation.
Get prequalified NOT preapproved
It’s time to look at your credit and finances so you can build a solid portfolio as you prepare to buy in Portland. A good lender will give you a list of what you’re going to need in order to qualify for a loan. When you’re ready they’ll ask you a lot of questions. Don’t be daunted by these questions and requests for information, even if you don’t think you’re quite ready. They’re here to help you and will help you understand how to prepare to buy. A good lender will spend the time to get you an underwritten approval. This is not a pre-approval and takes time. If you’re getting an instant approval online, it’s likely not enough. You want to see the word pre-qualified not just pre-approved. It’s important to have the details ironed out before heading into the buying process in Portland. In competitive markets, you have to have all of your info ready to write an offer. This step can’t be left out because sellers want to know that you’re qualified to buy. Depending on your budget and the listing price, you might be going up against other buyers. You want to shine!
Among other things that lenders assess before approving you:
Your credit history and score
Monthly/annual income
Debt to income ratio
Work history
How much you have for a down payment
Tax statements and other documents
Save for a down payment in Portland
Yes. You’ll need a down payment. Do you need 20% of the listing/offer price? Not necessarily but having funds for a down payment and other upfront costs is important. Start saving what you can. Different loan programs will require different amounts for your down. Your lender can answer your questions about loan programs and down payments. Working with a lender in advance will help you figure out much you need to save. Ask your lender for scenarios to help you get the full picture of what you need to save and what your monthly payments will look like.
Now you’re ready tor the fun part
Whew! Getting ready might take a little bit of time but it’s crucial. You can start looking at houses throughout this first phase but may not know what you’ll qualify for and what your budget looks like. Once you’re pre-approved, you’ll have a better sense of what you can afford and ultimately what and where in Portland you can buy. Portland’s market is competitive and ultimately, depending on your budget, expensive. You’ll want to think about location and resale value, is your choice a good investment? And what about the day to day details like commute times, too much yard? Do you want to spend all your time working on your house on the weekends or would you rather a condo. Finally, what are your future plans? So hard to always know but are you buying to stay for 7-10 years or is this your forever home? Are you planning on starting a family? Do you have enough room for guests?
You might want to:
Write a list of must-haves in your future home
Write a wish list by order of most desired wishes
Know what you’re willing to and not willing to let go of when looking
Be realistic
We’re here to help
You can shop online for homes but it’s good to have us looking too. We can help you with location, home types, schools, and with narrowing down your wish list. Once we know what you are looking for we send you listings as often as you’d like. During busy seasons homes come on the market a couple of times a week but it’s important to look and receive updates daily.
Writing an offer that will get accepted
This is the first step toward owning your new home but it’s easier said than done. There is a lot to consider. We’re going to explore what makes a great offer and what happens after your offer is accepted in our next blog post. Stay tuned!