Home Buyers Guide
Tips for Southern Oregon Home Buyers
Planning to Buy A Home?
There are many important things to consider when buying a home. Before you start shopping for your property, you’ll need to make some preparations. In addition to pre-approval for financing, it’s recommended that you discuss your wants and needs with your PW Real Estate Team, Penny Dunlap and Whitney Paulsen, who understand the current market conditions and have the insights and savvy to make your home buying experience a success.
Concider All Options
Would you like to purchase a home, rural or commercial property in Southern Oregon with all of the benefits that the beautiful Rogue Valley has to offer? Be sure to give us a call. We know the area inside and out as well as the most current market conditions. The PW Real Estate Team will guide you through the home buying process. Together we’ll find the right home to fit your wants, needs and expectations.
Financial stability is one of the most important factors considered when a lender is evaluating your financial position in order to approve your mortgage. The key to financial stability is having a dependable income.
Organize all of your important financial documents to prepare for loan pre-approval in order to secure financing for your property. These documents include:
- Financial statements
- Bank accounts
- Credit cards
- Auto loans
- Recent pay stubs
- Tax returns for two years
- Copies of leases for investment properties
- 401K statements, life insurance, stocks, bonds, and mutual account information.
Check your credit score
Your credit rating greatly impacts the type of property you can buy as well as the price range. We’ll steer you in the right direction in regard to checking your credit score in order to help you to determine what you can afford.
Know your budget and don’t over estimate
Many homebuyers overestimate what they afford and end up with very little wiggle room financially. Do your homework and to ensure that you have a realistic idea of the annual costs associated with owning a home.
Factor in the mortgage, property taxes, utilities, insurance and repairs so you know where you stand financially and what you can afford. Research all of the costs and to allow a comfortable budget and lifestyle. You don’t what to be strapped to your home and “house poor” with unmanageable expenses.
Keep your emotions in check
It’s understood that to you a home is more than a house, it’s the centerpiece of your life where everything happens. Buying a home is a major life decision. Anticipation and excitement are expected when you find a home that you really love but it’s important to keep a level head. Don’t let your emotions get in the way of your judgement and lead to disappointment. Set-backs can happen if unforeseen problems are discovered in the home inspection or if someone wins an offer before you. Home searching takes time and can be a lengthy process—be prepared for that—it will be worth it when you find the right home and your offer is accepted.
Don’t talk to sellers about your plans for the home
Avoid meeting with sellers and talking about your plans. Even though you have plans to buy and make changes, add personal touches to the home, or even remodel, it’s best to keep it this information to yourself. Keep in mind the current owner will have an emotional attachment to the property. You’ll want to avoid building doubt in the seller’s mind. As a buyer, if you do end up in conversation with the owners, keep the conversation light and friendly.
Watch your finances
When applying for a mortgage, every financial transaction plays a part in order to prove to your lender that you have a smooth financial history. Prevent making sudden career changes or large purchases as you prepare to purchase a home. Your property purchase should come from a position of financial stability. Avoid applying for loans, changing jobs or retirement, and do not make any large purchases like buying a car or furniture prior to your loan application and pre-approval. If you switch jobs often or leave your place of employment before applying for a mortgage it can raise red flags. If you are preparing for a job change wait until after your mortgage is approved.
Do not deposit or withdraw large amounts of cash
Cash deposits and withdraws also play a part in the mortgage approval process and rate. Avoid withdrawals or deposits of large sums of cash, in order to reflect your financial stability.
Don’t apply for more credit
When you apply for additional credit it increases your debt and affects your credit report. It can also decrease the amount you will be approved for on a mortgage. Lenders want a clear picture of your capital and how much money you have at your disposal.
Don’t co-sign on a loan
Even though a loan may not technically be yours when you co-sign on a loan, it will count towards your overall debt. The amount of your mortgage, and your overall approval rate will be impacted by co-signing a loan. Avoid co-signing any loans until your home purchase is secured.