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11 Of The Best Home Buying Tips

Jamohl DeWald — Mon, 27 Aug 2018 13:32:43 +0000

11 Tips For Buying A Home

Buying a house whether it’s your first or fifth — can be a bumpy process. Between the financing, the availability (or scarcity) of homes on the market in your price range that meet your needs, the offer process, the appraisal and the inspection, there’s a lot that can go wrong between deciding that you are in the market for a new home and turning the keys for the first time in your new front door.

But there’s a lot that buyers can do to make the process smoother. Here are eleven tips.

Your finances

1. Check your own credit

Your credit will play a huge part in what types of loans you may qualify for.

You may or may not be able to change your income at the moment or be able to save a 20% down payment on a home. But you can always work on improving your credit score! Get copy of your credit report and verify that it is accurate. Get all errors and inaccuracies corrected. Your lender can tell you which payments to prioritize and what to do to help improve your credit score.

2. Research Home sale prices in your area

It’s always a good idea to research the neighborhoods you are thinking about buying a home in. Check on active homes, pending and sold sales. What are the average days on the market and average sold price? At this point it’s a good idea to speak to a real estate expert. As a home buyer an agents services are FREE to you! A real estate agent can help guide and advise you on the details of a specific neighborhood. An agent can also help with the pre-approval process, along with other questions about the costs of homeownership like maintenance/repair costs.

3. The down payment

Most first time home buyers can’t afford to put 20% down payment on a home. In this case, you will end up having to pay PMI (private mortgage insurance) on your home loan.

There are a number of down payment programs that will help you secure some or all of your down payment. Start with downpaymentresource.com to see what’s available in your area for your demographic. Check here Portland Metro Area Down Payment Options

4. The costs of owning/buying a home

Along with your PMI insurance, you will have things like property taxes & homeowners insurance. Depending on where you buy you may also have to carry flood insurance. Don’t forget about closing costs, new furniture needed to decorate your home, lawn mower and gardening tools you may not have ever needed before along with the costs of maintaining your home. Your real estate agent should be able to help advise what to expect as far as home maintenance.

5. What can you afford?

The experts say to not to spend more than 1/3 of your monthly income on your mortgage payment (including insurance, taxes and other costs).

A mortgage broker can help you with any questions you may have. The pre approval process takes some work on your part but it’s pretty painless really. You can expect to have to provide taxes for the last 2 years, bank statements, credit report, check stubs etc. in order to complete your pre approval. In a seller’s market which most of the US is in you will definitely need your pre approval in hand BEFORE you start shopping for a home.

The home search

6. Wants VS needs?

After you have gone through the pre-approval process, you can now start to make your wants & needs list in a home. If you have a dog, then a condo in the city that doesn’t allow pets probably isn’t a great option for you. But, a single family home with a fenced backyard would be a great fit for you! Again, this is an area where an experienced local real estate agent can help you find your dream home.

Keep in mind your wants and needs might change over time. Expect to be in your home for at least a couple of years. The average time is 7 years. You may not have kids now, but if you’re planning on having children, then it’s a good idea to consider school districts as well.

7. What are your dealbreakers

Dealbreakers are important. There is a difference between dislikes (paint color) and dealbreakers (no yard). Dislikes can more than likely be changed or dealt with, dealbreakers can’t.

An experienced real estate agent can help guide you with these decisions. Your realtor can also help you take care of any of those dislikes before you move into your new home.

8. Home search

One tool that real estate agents have that the general public doesn’t, is access to the local multiple listing service (MLS). Once you understand your must-haves and your dealbreakers, your real estate agent can set up a personalized alert anytime a home that meets your exact criteria is listed on the market. In a hot sellers market this is still the BEST tool to get new home alerts instantly and far more accurate than Zillow or Redfin.

The offer & closing

9. Think competitive but reasonable

No buyer likes a bidding war, but you’ll want to make an offer that the seller will consider competitive. At the same time, you don’t want to pay more when the seller would possibly accept less. An experienced real estate agent can help you determine an offer that’s a good deal for you and priced high enough to capture the seller’s attention as well.

There are concessions you can make to sweeten the deal. Such as, selecting a close date that best suits the seller, offering the seller free rent back if they need extra time to relocate or offering to split the price of any necessary repairs discovered in the inspection. Your real estate agent can walk you through your options.

10. Inspections

The home inspection is a very important step in the home buying process. Make sure you and your agent are present for the inspection and listen carefully to any concerns that they may have about the property. Ask questions about common problems that the inspector sees in the home. After the inspection, you will have a good idea of what you will ask the seller to repair and what you’re okay taking on yourself.

11. Beyond closing

It’s a good idea to keep tabs on the market in at least a casual way so that when the time comes to renew your homeowners’ insurance policy, you have a clear idea of whether you’re underinsured or not. Obviously, the better you maintain your home while you live in it, the less chance that you’ll be surprised by something you must fix at the inspection when the time comes to sell it. Check here for a free “Home Maintenance” scheduler.

More helpful home buyer resources

Blockchain real estate selling property is getting easier – This article originally posted at Coincentral.com

Buying Etiquette 101 | Rules to Follow When Buying a Home – Via Michelle Gibson

10 Steps to Buying Your Home | Home Buying Checklist – Via Sharon Paxson

15 Steps to Home | What First Time Home Buyers Need to Know – Via Eileen Anderson

What You Wish You Had Known Before Buying A home – Via Lynn Pineda

14 Steps to Buying a House – A Complete Guide For Home Buyers – Via Kyle Hiscock

First Time Home Buyer Guide | The Home Buying Process Explained – Via Luke Skar

Small Down Payment Doesn’t Mean The Buyer is Not Qualified – Via Bill Gassett

What To Expect From Your Realtor As A First Time Home Buyer

Your realtor can remain a valuable resource for you by providing market statistics and connecting you with local contractors who can fix any issues you encounter in your new era as a homeowner. Looking for an excellent local Portland contractor? Check here

About Jamohl Dewald

My philosophy is simple: clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. If you’re not left with an amazing experience, I haven’t done my job. Success is not measured through achievements or awards but through the satisfaction and repeat/referral business of my clients. My goal is to be your top realtor choice when it comes to buying or selling real estate. Having spent most of my life in Portland, OR., living in Northeast, Southeast, Bethany, Hillsboro, Beaverton, downtown, St. Johns, Clackamas and West Linn, I’m very knowledgeable of the many different neighborhoods our city has to offer

The post 11 Of The Best Home Buying Tips appeared first on JD PDX Real Estate | Your Portland Realtor.

Research How to Find Down Payment Assistance Programs

Jamohl DeWald — Mon, 30 Jul 2018 21:06:04 +0000

You’re sick of paying high rents and putting money in your landlords pocket. You don’t have 20% saved for a down payment on a home though. You’re not sure if you can buy a home. Are you feeling stuck, like you have no options?

Don’t worry, there are down payment programs out there you may not be aware of that are available to you!

A lot of first time home buyers are not aware of these down payment assistance programs. Some home buyers think that they won’t qualify for the programs, or it’s too much work and not worth the effort. Different lenders have different options available to first time home buyers. It’s definitely worth checking with lenders to see what program(s) you may qualify for as a first time home buyer.

These are some helpful tips on how to find a down payment assistance program that is right for you.

Online Search-Down Payment Assistance Programs

You can check a website called Down Payment Resources which will ask you some basic questions like the home address, are you a first time home buyer, are you American Indian, are you a veteran etc and then search for programs that you may qualify for. (More helpful first time home buyer information here)

Locally in the Pacific NW, you can also check online at HOWNW.com for local non-profits, grants, tax credits and different programs available to help with down payments and or closing costs.

Special Down Payment Assistance Programs For Home Buyers

There are special programs out there that offer assistance based on your profession. If you’re a firefighter, police officer, in healthcare, a civic employee or an educator, there may be a certain program that you qualify for. If you’re a first time home buyer or have not owned a home in 3+ years, you may qualify for a first time home buyer program.

Local Neighborhood Stabilization Programs

The Neighborhood Stabilization Program was developed by the U.S. Department of Housing and Urban Development (HUD). It was a response to the residential foreclosures adversely affecting the housing market beginning in 2007, known as the “Great Recession”. The purpose of the NSP was to stabilize neighborhoods with high inventories of foreclosed residential properties by providing a financial incentive to income eligible homebuyers and funds to purchase and rehabilitate properties to qualified non-profit developers. (i.e. Habitat for Humanity).

First Time Home Buyer Government Programs

Depending on the community, State or County that you plan to buy in, there may be government assistance programs available to you. These include FHA (Federal Housing Administration) or VA (Veteran’s Affairs). Both have home loan programs and may offer down payment help. You may also find assistance options by checking with your state Urban Development and Department of Housing websites.

Keep in contact with a preferred lender as these programs change frequently. The lender or your realtor can keep you up to date.

More Useful tips here:

Small Down Payment Doesn’t Mean The Buyer is Not Qualified-Via Bill Gassett

No Money Down Mortgage Options-Via Luke Skar

5 Ways to Save Money for a Downpayment on a Home-Via Sharon Paxson

Local Rochester NY First Time Home Buyer Programs and Grants-Via Kyle Hiscock

How To Save For A Down Payment On A Home-Via Michelle Gibson

How To Budget When Buying A Home-Via Eileen Anderson

About the author

The post Research How to Find Down Payment Assistance Programs appeared first on JD PDX Real Estate | Your Portland Realtor.

4 Proven Useful & Practical Tips For Financing Your First Home

Jamohl DeWald — Tue, 24 Jul 2018 15:18:21 +0000

4 Outstanding Quality Tips For Financing Your First Home

Are you thinking about buying a home this year? Are you slightly overwhelmed by the whole process? Are you not sure where to start and who to speak to? No worries, you are not alone! In this article, I will share with you a few things to consider and make the path to homeownership an easier one when you decide that you are ready to buy a home.

It’s a good idea to fully understand the home loan process. If you’re thinking about buying a home this year, use these 4 tips to optimize your opportunity.

Credit-Check

Do you know what your credit score is? Do you have any credit? Do you have battered credit? This is step number one in the pre-approval process. It’s a good idea to pull a copy of your credit report and look it over for any errors or inaccuracies. This is the time to start working on fixing those inaccuracies that you find. It would also be a good time to speak to a credit repair expert or your local mortgage broker for advice. They can advise you which outstanding debts to tackle first and what type of account you should open to help build credit if you don’t have any/enough.

Your credit score will have a direct impact on your mortgage loan rate and what types of loans you can qualify for. If you have been procrastinating and thinking your battered credit will just go away on it’s own, it’s time to change that mindset and deal with it head on!

Save-Down Payment

While experts may advise putting 20% of the total sales price down, in today’s world the average first time home buyer puts down about 3 to 5%. 20% down is just not possible for most when it comes to their first home purchase. There are programs out there that don’t require any money down or as little as 3-5% down depending on your credit and where you plan to buy a home (Check with your local lender or mortgage broker for loan options available to you in your area) There are all types of down payment assistant programs out there from grants, to non-profit organizations that can help you as well.

More than likely, there will be expenses beyond just your down payment. These can include, closing costs, mortgage insurance (if less than 20% is put down), homeowners insurance, flood insurance , negotiated repairs needed to the home, and let’s not forget the move itself! It is in your best interest to save as much money as possible before you start the pre-approval process. When you have a few months of mortage payments saved it can lead to more flexibility from the lenders.

Pre Approval

Now that you have gotten your credit cleaned up and all inaccuracies removed, saved up some money for closing costs and down payment, it is time to get your home loan pre-approval done. With inventory at an all time low in most areas of the United States, it is also still a seller’s market in most areas. You must have a pre-approval in hand, not a pre-qualification when you decide to offer on a home in today’s market. A pre-qualification is just that…that means you have spoken to a lender and told them how much you make etc, whereas a pre-approval means that a lender has verified the things that you have said on the phone and have documentation to back it up. A pre-approval is much stronger than a pre-qualification. A pre-qualification is barely worth the paper it’s written on.

Ultimately getting pre-approved for a home loan will save you and your realtor time because you will know exactly what you can afford. It also shows the home seller that you are serious and that you have done the work needed in order to be able to perform on your end of the loan.

The Offer-Agent

This part of the transaction can be overwhelming and stressful. You don’t want to offer too high and over pay for the home but you also don’t want to offer too low and not have your offer considered.

You can do your own research online to get an idea of the market activity around the home you want to offer on. How quickly do homes sell in that area, do most homes end up closing over the ask price? Are there a lot of homes available around this one and similar, is there no inventory around it? These are all things that an experienced realtor will be able to advise you on and help you figure out a fair offer price that will give you the best chance of getting your offer accepted.

Buying a home can be a stressful process whether it’s your first home or third. Between, the loan process, homes search process, offer, inspections, negotiations, appraisal there are a lot of things that can go wrong! But if you take advantage of these 4 tips, they can definitely help you on the path to homeownership. Check this article called “First Time Home Buyer & How to Prepare to be a Homeowner” for more first time home buyer help.

About the author:

Our philosophy is simple: clients come first. we pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. If you’re not left with an amazing experience, we haven’t done our job. Success is not measured through achievements or awards but through the satisfaction and repeat/referral business of our clients. Our goal is to be your top realtor choice when it comes to buying or selling real estate. Having spent most of our lives in Portland, OR., living in Northeast, Southeast, Bethany, Hillsboro, Beaverton, downtown, St. Johns, Clackamas and West Linn, we're very knowledgeable of the many different neighborhoods our city has to offer.

The post 4 Proven Useful & Practical Tips For Financing Your First Home appeared first on JD PDX Real Estate | Your Portland Realtor.

First Time Home Buyer & How to Prepare to be a Homeowner

Jamohl DeWald — Mon, 25 Jun 2018 15:11:24 +0000

First Time Home Buyer & How to Prepare to be a Homeowner

What do you want?

When it comes to buying a home you have several choices, you can buy a condo, an apartment, a single family home or a duplex, for example. The first step would be to figure out which one of these makes the most sense for your situation or family.

Do you want to be close to work, schools? Is walkability important to you? What kinds of amenities are nearby? What’s the commute like, and is public transportation close?

Once you’ve figured out the type of home and where you would like to live, then it is time to start thinking about your dream home and it’s finishes, like the size of the home, size of the back yard, how many bedrooms you need etc.

Some of those preferences will be just that, and some will be dealbreakers. If you have a large dog or children, you may find a good sized backyard on your “must have” list. You will be suprised at how that “must have” list can change once you start looking and see what’s on the market and available at your price point. While it is good to know what you want, you must be willing to compromise and adjust the “must have” list as you search for a home.

It’s best to keep an open mind and be flexible. Even if you have a friend that lives in the neighborhood you are looking at, now would be a good time to find a local realtor. They help people just like you every day and they may even know of pocket listings not on the market yet that match your search criteria. A realtor can also get you information on costs to update/change the home to meet your current needs as well.

Are you financially prepared?

This would be one of the reasons you would want to talk to a real estate agent early in the process. There are a lot of things that you can do to help get on the right path to homeownership. Most of this should happen before you even start to look for your dream home.

If you aren’t already connected with a mortgage broker, start here. Mortgage brokers are experts in the different types of loans available to you and finding the best loan for your needs.

Credit:If you need to do a little work on your credit before you can qualify for the loan, a mortgage broker or your realtor can also help you with some recommendations and tools available to you for credit repair.

Depending on your age, where you live, or if you’re a first time home buyer, you might be eligible for free money that can only be applied toward a down payment or closing costs on a home. Some programs supporting responsible homeownership require you to attend a few classes about buying a home and how to pay off a home loan. Not only will you learn some things about home ownership, It will be worth your time get up to a few thousand dollars for free, to help with your down payment or closing costs.

When you feel that you have your down payment, credit in order and are ready to buy a home, ask your lender to get your pre approval in order. This will give you the best chance to get your offer accepted if you find a home that you love instead of waiting for the lender approval. In this hot sellers market (most markets) you will want to definitely have your pre approval in hand and ready to submit with any offer you make… and you’ve already done the work, so you might as well give yourself the best chance possible of getting your offer accepted.

What can you afford?

Financial experts recommend not spending more than 30% of your total monthly income on housing.

Your mortgage payment will cover the cost of the home, interest on the mortgage loan, homeowners’ insurance, and property taxes. Depending on the size of your down payment (under 20% downpayment), you may also need to pay private mortgage insurance (PMI) on your loan.

Property tax information can be found in most listings or provided by your realtor. Taxes are calculated as a percentage of the home’s value, so property tax can go up or down depending on the housing market.

A local insurance agent can also give you a good idea of what you’ll be paying for homeowners’ insurance. You should be able to save some money by combining all your policies under one company (home, auto, loan) The home could need other insurance, like flood or earthquake insurance (flood insurance is required on some homes).

The mortgage interest rate is going to depend on a few factors; your current credit score and the current mortgage rates. A mortgage lender can help you figure out what your current options might be and may even offer suggestions for how to improve your credit score to get a better rate while you’re saving up for your down payment.

Down Payment:

Don’t forget that whatever you have saved will be applied to the home sale amount. So, if the home you want to buy costs $300,000 and you have $60,000 (20%) to put down on the home, then you’ll be borrowing $240,000 from the lender instead of the full $300,000.

There are online calculators that can help you assess some of these factors, but again, it’s smart to talk to a real estate agent. An agent can also refer you to a local insurance agent and mortgage broker so you can start figuring out what you need to do to become a homeowner.

How do you make the best offer possible?

It can be deflating after taking all these steps to home ownership and have your offer rejected or find out you were just simply outbid.

This is where a real estate agent becomes truly valuable in the process; they’ve seen offers that were accepted and offers that were not, and they do this every day. There are all kinds of do’s and dont’s when it comes to getting an offer accepeted in a sellers market: Check Michelle Gibson’s article HERE for more tips.

A good real estate agent will be able to advise you of the best terms possible to get your offer accepted.

Once you can answer these questions confidently, it’s time to start searching for a home. You will be set to put your best foot forward and be on the path to home ownership!

More Helpful Tips:

5 Reasons Why A Buyers Full Price Offer Was Rejected – Via Michelle Gibson

What is Dual Agency: Why Buyers & Sellers Should Avoid it – Via Bill Gassett

10 Biggest Mortgage Mistakes First-Time Home Buyers Make – Via Xavier De Buck

8 First Time Home Buyer Mistakes to Avoid – Via Sharon Paxson

The Best Homeowners Insurance – Via Reviews.com

About the author

My philosophy is simple: clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. I believe that if you’re not left with an amazing experience, I haven’t done my job. I don’t measure success through achievements or awards but through the satisfaction and repeat/referral business of my clients and becoming your top realtor choice when it comes to buying or selling real estate. Having spent most of my life in Portland living in Northeast, Southeast, Bethany, Hillsboro, Beaverton, downtown and St. Johns, I’m very knowledgeable of the many different neighborhoods and surrounding areas our city has to offer.

The post First Time Home Buyer & How to Prepare to be a Homeowner appeared first on JD PDX Real Estate | Your Portland Realtor.

A Complete Quick Guide For First Time Home Buyers

Jamohl DeWald — Tue, 15 May 2018 06:31:23 +0000

Complete guide-

Buying your first home is a huge part of the American Dream — and is also a daunting and potentially overwhelming process that’s ripe for second-guessing everything you know. How do you know you’re ready? How can you prepare yourself financially? What do you even want to buy, and where — and what will happen if you make a mistake?

It’s only natural that buying your first home would feel like a huge process: This is probably the biggest purchase of your life to date, and you’re going to be paying a mortgage for up to 30 years, so you want to make sure you get it right.

Thankfully, we live in the Information Age, and there’s a lot you can do to educate yourself about what it takes to become a (happy) homeowner. Here’s how to get started so that you can be certain your home purchase is a good decision for you — now and in the future.

What do you want to buy?

1. Consider the type of property

It’s quite possible that your lifestyle means you should think beyond the typical single-family home when the time comes to buy your first place.

For example, if you’re a first time home buyer who’s thinking about renting out part of your new home to help pay the mortgage, then you should look at duplexes or other multi-family units. If you plan to live in the unit yourself, you can finance it as your own property, get the same homeowners’ insurance rates as owner-occupiers receive, and maintain a separate space to rent.

There are also condos and apartments, new construction and prefabricated homes, and many other options that might be a better fit for you than a prebuilt single-family home. If you need help figuring out what’s available and what’s a good fit, talk to your local real estate agent, who can walk you through the common opportunities in your area and help you pick one or two that fit your lifestyle best.

2. Know where you want to go

Maybe you’ve narrowed your search down to one metro area, or maybe you know exactly which neighborhood is the best fit for you. Spending some time to research the parts of town where you might be moving in and buying is a smart thing to do, even if you’re positive that you already know everything about the area.

Talk to friends who live in the area and ask them what they like and dislike about the neighborhood. Ask yourself how similar your lifestyle is and whether those likes and dislikes are relevant to you. If you can, look up suburb specific and neighborhood specific Facebook groups where you can lurk and figure out what the neighbors are like. (Social networks like Nextdoor are also great resources, but you usually have to live in the neighborhood already before you can join the neighborhood group.)

This would also be a good opportunity to bring in an expert, like a real estate agent who’s familiar with your area of interest. Agents can show you other parts of town that you might not be currently considering and can connect you with current residents if you don’t happen to know any.

3. Try to predict the neighborhood’s future

A neighborhood that’s perfect for you today might be not-so-perfect in five or ten years as people move in and out and the landscape changes. So it’s smart to get an idea of what the neighborhood is like today — and to spend some time trying to predict where it might go in the future.

Local chambers of commerce or business journals can be good resources for this kind of research. Look at the types of businesses that are most prominent in the area and do a little bit of digging into the most popular industries. Are they robust industries, like technology and health care, or are their futures less certain, like publishing? If you need to sell your home in a few years, do you think there will be buyers interested in taking it off your hands?

You should also ask about future plans for the neighborhood, like public parks, playgrounds, hiking trails, or any new businesses that are likely to emerge near you. Will it bother you to be located within walking distance of the county’s largest playground, or is that a huge perk?

4. Spend the night in the area

You might love the busy downtown area during the day, but you’re an early-to-bed, early-to-rise type — will all that nightclub activity be a problem for your sleep schedule? And maybe you really savor the idea of “getting away from it all” to the countryside, but are you sure that you can survive that far away from decent food delivery options?

It’s wise to spend some time in the area where you want to move — up to a week if you can. If possible, opt for a vacation rental or AirBNB instead of a hotel or motel when you spend the night. This will help you get a feel for the neighborhood and the people who live there as well as some of the more logistical aspects of your move, like your route to work and where you can go to buy groceries. How will your home purchase affect your daily routine — and do you enjoy those changes, or are they causing problems? It’s better to know that a neighborhood really isn’t right for you before you put an offer on a home there.

Money matters

5. Get some credit

Quick — what’s your credit score? If you don’t know, or if it’s below 580, then you have some work to do before you can get ready to finance a home.

Obtain a copy of your credit report and check it for errors. Correct them. Then take it to a credit counselor and ask them for the two or three biggest-impact tasks that you could complete, then start working on them.

There are options for obtaining a loan if your credit’s not the best, but every little upward tick helps, so try to get it in decent shape before you start seriously home-shopping.

6. Go big on your down payment

The down payment can be a daunting piece of the homebuying puzzle for many first time home buyers, who don’t have equity in their current place of residence (because they’re renting) and might not have much disposable income to save.

The good news is that not every mortgage loan requires you to save up a full 20-percent down payment for your home purchase. Some government-sponsored entities (GSEs) in particular, like the Federal Housing Administration and the Veterans Administration, offer low-down-payment and no-down-payment loans that can be a good fit for first time home buyers.

That said, if you’re paying less than 20 percent down, most mortgages will also require you to pay mortgage insurance on the loan. So if it’s at all possible to get close to that 20-percent number, it’s a really good idea to try.

There are a number of organizations that offer resources and even down payment grants for certain buyers. Find out what you might qualify for at HowNW.com.

7. Consider your total monthly out-of-pocket amount

You just learned about mortgage insurance, which is one additional monthly expense that you could wind up paying over the lifetime of your mortgage if you don’t have a full 20-percent down payment. In addition to that, you’ll need to pay for basic homeowners’ insurance (and any additional policy coverage, like for floods or earthquakes), property taxes, and the interest on your mortgage loan every month.

That’s not where it ends, of course: You’ll need to figure out your utilities, like electricity, gas, and water (sometimes included in the total rental price of a home, so you might not be used to paying for them), plus any internet, phone, and other connectivity features you might need in your new place.

And, of course, you’re going to have to deal with maintaining your home — if your water heater breaks or you need a filter replaced, there’s no landlord to call and ask for repairs. It’s on you. So think ahead about how you might pay for a home emergency if (when) one emerges.

8. Understanding what you can afford and getting pre-approved

It’s probably tempting to start searching for homes as soon as you think you know what you want and where you want it — but there’s another very important component, which is what you can afford.

Try to steer clear of any programs or apps that pre-qualify you for a mortgage loan instead of pre-approving you for a loan. A pre-qualification is a less formal guess as to what you might qualify for, but a pre-approval means you have submitted all your income paperwork and a lender has decided that it will loan you money for a mortgage in a specific dollar amount. It means you can put in an offer immediately when you find your dream home instead of waiting to jump through any financing hoops.

9. Budget for other homebuying costs

What are closing costs, and why would you want title insurance? The monthly price of becoming a homeowner is one thing, but there are also several other individual costs involved with the actual process of buying a home.

You’ll need an appraisal and an inspection, and an entity like a title company (neutral 3rd party) to facilitate the closing — all of those players are going to need to be paid, and the buyer is usually the one to fork over the cost. That might not be what you want to hear, but it’s better to save now and realize you don’t need the money than to be surprised in the middle of the transaction process with a handful of several-hundred-dollar expenses.

Keep your eyes open while shopping

10. Ask HOA questions

Homeowners’ associations (HOAs) aren’t present everywhere, but you definitely don’t want to buy a home that’s in an HOA without understanding exactly what that means. At the very least, you’ll be paying dues and agreeing to maintain your home to certain community standards, so if you’re the type who likes to work on your cars in the driveway and you discover a certain neighborhood’s HOA doesn’t allow this, then you’ll be glad you did your homework upfront.

11. Know what’s fixable and what’s not

You’ll definitely be looking at some homes that are … not to your personal taste, let’s say. But before you decide to take a hard pass on a place, it’s smart to understand whether the things you hate about it are easily fixed — or whether they’d be too expensive or time-consuming to even consider tweaking. And if you’re budgeting for improvements, then it’s helpful to talk to an expert (like a contractor or real estate agent) about what’s possible and what’s really not in the home you’re considering.

12. Be aware of the market conditions

If you started this process six months ago and haven’t really looked at listings in the interim, then do yourself a favor and ask your real estate agent to set you up with a personalized feed from your local multiple listing service, and then have your agent walk you through the market realities today. You’ll want to know that most buyers are paying 5 percent above asking price (or 5 percent below it) if that’s what’s happening so that you can make an educated and intelligent offer when the time comes.

13. Figure out where you have room to negotiate

If you have some flexibility in terms of when to move in, then that can be a big point in your favor as a buyer — for a seller who wants a super quick sale as well as a seller who wants to take plenty of time to say goodbye. Talk to your agent about other concessions or benefits you can offer when you first bid on a home to sweeten the deal. Not all of them involve spending extra money, and one could make yours the winning offer on a home. As a first time home buyer in this very competitive market, you will want to make sure you’re working with an experienced buyer agent that can help you write the best offer possible.

Take it to the finish line

14. Get familiar with the closing process

Once your offer is accepted (congratulations!), there’s still a series of obstacles to overcome before you are officially a homeowner. The appraisal, inspection, repair negotiations and title search will need to take place, and you’ll definitely want to be there in person for the inspection along with your agent. You may want parts of the home tested for elements like radon (common in the NW). If the inspector finds an issue that needs to be addressed, you’ll need to negotiate with the sellers about what to do and who’s paying, and you’ll also need to decide whether or not to buy title insurance — so if a claim on the home emerges that didn’t show up with the initial title search, you’re legally protected. You might need to run errands yourself, too, like tracking down any final paperwork for your mortgage loan, or visiting your bank to obtain a cashier’s check for your earnest money or down payment, then dropping it off at the title company. Your realtor can help and advise with all of these steps.

Signing-Closing

It’s not over until you’ve signed a ream of papers and the keys are in your hand, so remember that on top of getting ready to move, you will need to carve out some time to take care of the last pieces of closing business.

If you’ve never bought a home before, take heart: You can achieve your first time home buyer’s dream, but it’s going to take some work.

The post A Complete Quick Guide For First Time Home Buyers appeared first on JD PDX Real Estate | Your Portland Realtor.

Biggest Home Down Payment By State

Jamohl DeWald — Fri, 30 Mar 2018 16:14:47 +0000

Top 10 States for biggest home down payment

Start your home search TODAY!

The post Biggest Home Down Payment By State appeared first on JD PDX Real Estate | Your Portland Realtor.

WHICH DOWN PAYMENT STRATEGY IS RIGHT FOR YOU?

Jamohl DeWald — Wed, 22 Nov 2017 15:11:10 +0000

WHICH DOWN PAYMENT STRATEGY IS RIGHT FOR YOU?

You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders.

But there can actually be financial benefits to putting down a small down payment—as low as three percent—rather than parting with so much cash up front, even if you have the money available.

THE DOWNSIDE

The downsides of a small down payment are pretty well known. You’ll have to pay Private Mortgage Insurance for years, and the lower your down payment, the more you’ll pay. You’ll also be offered a lesser loan amount than borrowers who have a 20-percent down payment, which will eliminate some homes from your search.

THE UPSIDE

The national average for home appreciation is about five percent. The appreciation is independent from your home payment, so whether you put down 20 percent or three percent, the increase in equity is the same. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities.

THE HAPPY MEDIUM

Of course, your home payment options aren’t binary. Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. Your trusted real estate professional can provide some answers as you explore your financing options.

Do you drive around looking for homes and wonder what they look like inside? Are you curious about the listing price of homes in your area? How about the taxes and an estimated mortgage payment? My mobile app gives you access to all of that information, and so much more. Find open houses, save favorites, and even schedule appointments – right from your phone. You can even share listings with your friends and family, too. Download my app and start searching for your next home today! Download My App

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The post WHICH DOWN PAYMENT STRATEGY IS RIGHT FOR YOU? appeared first on JD PDX Real Estate | Your Portland Realtor.

down payment – JD PDX Real Estate | Your Portland Realtor

11 Of The Best Home Buying Tips

11 Tips For Buying A Home

Your finances

1. Check your own credit

2. Research Home sale prices in your area

3. The down payment

4. The costs of owning/buying a home

5. What can you afford?

The home search

6. Wants VS needs?

7. What are your dealbreakers

8. Home search

The offer & closing

9. Think competitive but reasonable

10. Inspections

11. Beyond closing

More helpful home buyer resources

Research How to Find Down Payment Assistance Programs

Online Search-Down Payment Assistance Programs

Special Down Payment Assistance Programs For Home Buyers

Local Neighborhood Stabilization Programs

First Time Home Buyer Government Programs

More Useful tips here:

About the author

4 Proven Useful & Practical Tips For Financing Your First Home

4 Outstanding Quality Tips For Financing Your First Home

Credit-Check

Save-Down Payment

Pre Approval

The Offer-Agent

More Useful Articles

About the author:

First Time Home Buyer & How to Prepare to be a Homeowner

First Time Home Buyer & How to Prepare to be a Homeowner

What do you want?

Are you financially prepared?

Credit:If you need to do a little work on your credit before you can qualify for the loan, a mortgage broker or your realtor can also help you with some recommendations and tools available to you for credit repair.

What can you afford?

Down Payment:

How do you make the best offer possible?

More Helpful Tips:

About the author

A Complete Quick Guide For First Time Home Buyers

Complete guide-

What do you want to buy?

1. Consider the type of property

2. Know where you want to go

3. Try to predict the neighborhood’s future

4. Spend the night in the area

Money matters

5. Get some credit

6. Go big on your down payment

7. Consider your total monthly out-of-pocket amount

8. Understanding what you can afford and getting pre-approved

9. Budget for other homebuying costs

Keep your eyes open while shopping

10. Ask HOA questions

11. Know what’s fixable and what’s not

12. Be aware of the market conditions

13. Figure out where you have room to negotiate

Take it to the finish line

14. Get familiar with the closing process

Signing-Closing

Biggest Home Down Payment By State

Top 10 States for biggest home down payment

WHICH DOWN PAYMENT STRATEGY IS RIGHT FOR YOU?

WHICH DOWN PAYMENT STRATEGY IS RIGHT FOR YOU?

THE DOWNSIDE

THE UPSIDE

THE HAPPY MEDIUM