Monday, February 28, 2011

6 Steps to Take Before You Buy A Home




I often get the question from buyers, "where do I start?'' The home buying process can be rather complex but if you do you homework right, then it will leave you rather confident through the entire process.

*Start Saving Money-Seems hard these days with rising gas prices and our grocery bills going through the roof. However, down payment requirements are pretty low! FHA requires 3.5% and their are some special loan programs for buying bank owned homes where you can put as little as 3% down. The only options for 100% financing are VA and USDA. With a down payment of less then 20%, you are required to have mortgage insurance, and that number varies and will influence your monthly payment. Some loan programs require you to have reserve funds, so check with your loan officer to make sure you have the necessary funds to progress in the home buying process.

*Get a Credit Report- A credit report shows debts (good&bad), past late payments, payment history, and credit score. Most loan programs require a 640 credit score to qualify for a loan. Your loan officer will be able to walk you through your report and give ideas on how to improve the score if it is needed.

*Start the Pre Approval Process-Obtain a loan officer. This will tell you how much you can afford. They will require W2s, pay stubs, bank statements, work history, and rental history that is just to name a few items. You will need a pre approval to submit an offer and most sellers will not consider an offer if it is not accompanied with a pre approval.

*Ask About Additional Costs- In addition to the down payment requirement, the buyer will be responsible for other costs. A buyer has a right to a home inspection, cost between $250-$500. Their is also an appraisal fee and other charges associated with the loan and title, which are referred to as closing costs.

*Compile A Must Have List- This is the fun part but keep it realistic! Make sure you know the difference between your must have list and it would be nice to have list. Remember things can change over time. If your not loving the tile counter tops and prefer granite that can be changed!

*Identify Neighborhoods- Look at neighborhoods that fit your priority list. Make sure you evaluate schools, nearby conveniences, and commute time. These priorities can make or break a neighborhood or help you to decide between homes.


It is very important to know what your in for when jumping into the home buying process. Try and be prepared as best as you can. Its a fun and exciting process!

Saturday, February 26, 2011

Why Get Pre Approved??

I just answered a question from potential buyer, and this question keeps coming up! Why do real estate agents want me to get pre approved before I start viewing property? To me this is important and I will explain why. When your out viewing property without any idea what you can afford, their are no boundaries and limits. Right? May sound fun to go look at homes in a huge range of prices. The problem is finding THE DREAM HOUSE that you can't financially qualify for. Then the dreams are shattered! It works in reverse as well! If you feel like you can only afford a certain price range and you go looking at homes that you think you qualify for, you may become disappointed. This may cause you to become discouraged and give up. Lets say that you started the house hunt before the pre approval process. You find your dream home, before making an offer you need a pre approval! Now you have to wait a few days to make the offer and risk losing the house to somebody else. Most sellers won't look at offers without pre approvals, especially bank owned homes.

By getting pre approved, eliminates all  questions. Also, you have an idea of your monthly financial obligation! It just makes the process easier! If you need help finding somebody to help you get this process started, feel free to ask!

Friday, February 25, 2011

RMLS Lockbox Activity


This is the RMLS locbox activity for the week of February 7th through 13th. Rmls gets their numbers based on the previous week. This counts the number of time a lockbox was opened. It is good to see that the activity is up, that means that their are buyers out there!

New Carbon Monoxide Law




House Bill 3450, also called the Lofgren and Zander Memorial Act, was passed by the 2009 Oregon Legislature, requiring the installation of carbon monoxide alarms in residential homes.  The purpose of this new law, is to reduce the number of deaths each year related to Carbon Monoxide.
As of April 1, 2011, this law goes into action, no joke! CO detectors are require in all new construction or remodeling that requires a permit. This also include existing homes that go on the market or close after the 1st.

A detector is required on each level of the house. It is preferred that they are in all bedrooms but at a minimum they should be within 15 feet of sleeping areas. These detectors can be with the hardwired or plug in.

Carbon Monoxide is a colorless, odorless, and tasteless gas. CO binds more easily to redblood cells displacing oxygen. This results to lack of oxygen to the brain and other vital organs, resulting in tissue damage or death.

Sources of CO: Heaters, Furnace, Fireplaces, Woodstoves, Appliances, Portable Generators, Cars, and Lawn Mowers. That is just naming a few!

Make sure you have working carbon monoxide detectors in you home, not only because its the law, its a simple way to stay safe. For more information Click Here