4 Critical Factors First-Time Home Buyers in Oregon Should Keep In Mind

Investing in real estate is a significant decision for first-time homebuyers in Oregon or any other state. Although the process of looking at houses and neighborhoods and seeing how they match up with  your long-term needs is exciting, you must consider several factors before putting in an offer. You’ll start by gathering together all the information that will help you choose the perfect house where you’ll likely live for at least the next five to seven years.

    1.    Take a Realistic Overview of Your Financial Situation

The first practical step in your house-hunting is to take stock of your financial situation and figure out how much you can afford. Since you’ll likely need to take out a mortgage, check your credit score and start working toward improving it. You’ll need a credit rating of at least 620 to qualify for a mortgage, and a higher credit score will get you loans at a lower interest rate with more favorable terms and conditions. Additional figures to evaluate include the down payment, debt-to-income ratio, and the closing costs you’ll incur. Expect to pay around 2% to 5% of the home value in closing costs, and you’ll pay this amount out of your savings.

    2.    Account for Your Household Expenses

Typical amortization periods can last anywhere from 15 to 30 years. You must evaluate your income against the monthly expenses while accounting for inflation and incidentals. A good rule of the thumb is to ensure that housing costs don’t exceed 28% of your income per month. Assuming that your salary is $5,286, the maximum mortgage payments per month can be $1,480. You’ll also add up debt like student loans, minimum credit card bills, personal loans, car loans, and any other. These costs should not exceed 36% of your wages.

    3.    Searching for the Right Neighborhood

With an estimate of the approximate value of the house, you can start checking neighborhoods for the perfect home. You’d look for features like low crime rates, proximity to good schools, shopping centers, and health care. Public transportation options for getting around, walkability, and availability of restaurants and cafes nearby are other positives that first-time homebuyers in Oregon would look for. When evaluating Lane county homes for sale, you would want to research the local home value trends and the possibility of the house appreciating in value in the future.

    4.    Finalizing the Purchase

Once you find the perfect house, it is advisable to move quickly. Make an offer and get the necessary appraisals and inspections. Your realtor will also help you connect with banks and lenders to get the mortgage needed. Once you conduct the final walk-through and close the deal, you’ll want to ensure that all the paperwork is in order. The easiest way to fit this into your schedule may be to sign paperwork over the internet. Oregon is a remote notary state, so you can submit all the documents for review in this official capacity. The notary authenticates the legal documents like the mortgage deed, Affidavit of Owner Occupancy, Deed of Trust, Signature Affidavit, and Subordination Agreement.

 

Verification of the parties entering the deal is crucial and once the process is complete, the notary signs the documents and embosses them with the authority seal. You are now officially a first-time home buyer in Oregon. In the event that anything goes wrong, the documentation will hold up in a court of law.

 

Purchasing and owning a home is a significant milestone in your life. Work with an expert realtor and do the proper research when choosing the first home of your dreams. Also, ensure that you get the legal documentation in place after finalizing the buy.