Buying Steps

Here is a list of steps, before, during, and after your home purchase

Establish a budget. How much do you want to pay per month for a mortgage? A mortgage consists of (PITI) Principal (The amount you were loaned), Interest (Interest on the outstanding Principal), Taxes (Property taxes due annually), and Insurance (The cost to insure your home in case of catastrophe) 

We say "Purchase the smallest/least expensive home that fits your needs" To start this process you can find mortgage calculators online but soon you will need to apply for a loan with a loan originator

Once you establish a budget it's time to look for the area you desire. School districts, traffic patterns, proximity to your work, HOA, etc. will play a role in the areas you want to purchase in. You will also need to apply for a loan from a loan originator. 

Once you put an offer on the home it will either be accepted rejected or countered. Once accepted you will need to deposit earnest money, typically with escrow, and then you would begin your contingency period. The most common contingency is the home inspection. In your inspection it's time for you to either accept issues as is, offer a counter addendum, or reject the home and move on to the next home. This timeframe is short, and you must act within the timeframe, or you will lose your earnest money.  

Typically, transactions take 30-45 days to close, it usually depends on your loan process. Take this in mind and always give yourself a week or two weeks of extra time for the move. First, you'll want to accept or reject the seller's Property Disclosure. This is a series of questions the Seller must answer in Oregon about the property's history, if you reject the Property Disclosure, the transaction is terminated. Another item is to review HOA documents and bylaws to make sure they are in keeping with your values and that the HOA is well funded. The HOA being well funded is particularly important for condominiums. 

Another important part will be the appraisal. This is typically required by the lender to evaluate the value of the home. The number may come up at or above the value, which is good, if it comes in below, they will require you to bring more money in or lower the price with the Seller. They may also have items/repairs that the lender requires to be fixed before a loan will find. This is beyond the home inspection that you elect to request, and the lender does not ask to see the home inspection. 

You will close typically at an escrow office. Bring your IDs, you will sign paperwork for the loan and the sale along with any disclosures. Transfer utilities over, and switch all mailings, financial accounts, etc to your new address.