Buying a first home is a major milestone in everyone’s life. Finding the perfect house and having a smooth buying process is what all first-time buyers in Oregon dream about. However, purchasing a home for the first time is often very stressful and overwhelming. It’s even more stressful than buying and selling a home at the same time. If you decided to take a huge step forward and buy your first home, congratulations. In this article, we’ve prepared tips that will help you prepare for this process and go through it smoothly.
Tips for first-time buyers in Oregon
The process of buying a home is complex and can be quite overwhelming, especially if you’re doing it for the first time. Although everyone’s experience is different, the steps in the process are almost always the same.
The buying process consists of four vital parts:
- Preparation for buying
- Mortgage selection
- Home searching
- Making an offer and closing the deal
Further in this article, you’ll find out how to navigate each part of the process using our simple but very effective tips. Now, let’s begin!
Preparing for your first-time home purchase
Before you start searching for your ideal home, you need to prepare financially. Below, you can find out how.
Start saving and create a realistic budget
Buying a home is a considerable investment. Therefore, it’s essential to start saving as early as possible. Always have in mind that you will need funds for the down payment and closing costs. Also, it’s good to have some money set on the side in case of any emergencies.
Before you start searching for your new Oregon home, you’ll need to create a budget and know how much is safe for you to spend. Based on your income, down payment, debt, and credit score, you will be able to create a realistic financing plan.
Another thing to have in mind and that people often underestimate are the moving costs. If you are planning a long-distance relocation within Oregon, you will need reliable assistance with this type of move. Therefore, you’ll need to hire experienced long-distance movers and take these costs into consideration when planning your budget.
Strengthen your credit
Your credit score is crucial as it will determine if you qualify for a mortgage. It also affects the interest rate potential lenders will be able to offer to you.
To maintain a good credit score, make sure to pay your bills on time and keep your credit cards open but the balances on them as low as possible. Keep track of your credit score by analyzing your credit reports and making sure to dispute any errors you find that might affect it.
Selecting the best mortgage
Once you’ve gotten your finances in order, it’s time to choose the best mortgage you can get.
Research your options
It’s very important not to rush and choose the first lender you can find. There are so many different options with varying down payments and eligibility requirements, so it’s crucial to do your research first.
Get offers from several different lenders, compare mortgage rates and decide which one works best for you. Most people decide to get a 30-year mortgage with a fixed monthly rate. Depending on your financial situation, you might consider getting a 15-year mortgage. You’ll pay off your home sooner and usually with a lower interest rate.
Getting pre-approved will make the buying process much easier for you. This basically means getting an offer letter from your lender, which includes your mortgage terms.
By getting pre-approved, you’ll show the seller that you are a serious candidate and can give you an advantage over other potential buyers who skipped this step.
Searching for your first home
Once you get pre-approved, it means that you can start looking for your first home. Here are tips to help you make it easier.
Hiring a good real estate agent is crucial for first-time buyers in Oregon
Since you don’t have experience in real estate, you will need to find a reliable agent to guide you through the process and help you find a perfect home. Based on your financial situation, requirements, and needs, a good real estate agent will do thorough research and find suitable homes for you to choose from.
However, this is another decision you shouldn’t rush to make. Therefore, interview several different agents, make sure to ask them questions about their experience and knowledge, and don’t settle until you are sure you’ve found the right one.
Choose a good neighborhood and decide on the type of house
One of the most important things when buying a home is to know exactly what you want and what to look for. Therefore, talk to your real estate agent and create a list of demands that fits into your budget.
You need to decide what type of property you want to buy and think about locations you are interested in. That way, you’ll narrow the search and be able to choose the best neighborhood for your family that’s in your price range.
Closing the sale
Once you’ve chosen your first home, it’s time to finalize the transaction and close the sale.
Invest in a home inspection
A home inspection is a great way to ensure the property you’re interested in buying doesn’t come with hidden issues. A certified home inspector will be able to do a thorough check of the home’s structure and all mechanical systems.
A good idea is to be present during the inspection. That way, you’ll get another chance to view the home in detail and get a better understanding of it. You’ll also be able to ask questions and find out anything you want to know and that might not have been mentioned.
Prepare yourself for negotiation
Negotiations are an expected part of the home buying process, and you should try and turn them to your advantage. Make sure to ask the seller to cover a portion of the closing costs or lower the price in case of any problems that require repairs.
Keep in mind that market movements will determine your negotiation position. If you are buying at a time when the market is favoring sellers, chances are you’re not the only interested buyer, and you shouldn’t push too much on your demands.
After you’ve negotiated the price and made an offer, all that is left is to prepare for a long-distance move with your family and start your new and exciting adventure.
The bottom line
Many first-time buyers in Oregon, or anywhere else for that matter, feel overwhelmed and scared. As it’s a considerable investment, it’s only natural to have doubts. However, take a deep breath and try using the tips we talked about in this article. You’ll feel more confident and go through the buying process easier. Good luck!