Home Buyer Guide to Portland Oregon Real Estate: Part 1 The General Process

The Portland Metro MarketHome Buyer Guide To Portland Oregon Real Estate Part 1: The General Process

The Portland Oregon real estate market is going strong.  For Buyers who are contemplating a home purchase, there is a reality that should be acknowledged.  This Home Buyer Guide to Portland Oregon Real Estate is a Five Part Series.  You are reading the General Process.

Step #1 – Talk to a Lender

  • Obtain your Pre-Approval
  • Make an appointment to talk to a Lender/Loan Officer

Unless paying with cash, you will need to borrow funds in order to complete a home purchase.  The lender will run your credit, determine your current credit score, review your income-to-debt ratios, among other things.  If it’s determined that your credit-worthiness is on par with a home purchase, they will ask for documentation.  Home Buyer Guide To Portland Oregon Real Estate

Step #2 – Obtain a Pre-Approval

A cursory overview of your financial standing is unverified information that you’ve supplied the lender.  This would be a “Pre-Qualification” or “Pre-Qual.”   That’s okey, but it’s not “approving” you (in a preliminary fashion) for funds.  A Pre-Approval is when the information you’ve provided (bank statements, tax returns, wages, etc.) is VERIFIED.  Some lenders now run their Pre-Approvals through Underwriting, which is even better.

IMPORTANT TO KNOW:  Keep in mind, Underwriting guidelines, margins and allowances have change.  In some types of loan programs, Underwriting guidelines have become very strict. Borrowers with income-to-debt ratios above a certain percentage WILL NOT be approved for a loan, as mandated by Federal laws which have gone into affect since the mortgage meltdown.

Once you become Pre-Approved for a loan you will know:

  • How much money you can borrow based on your down-payment
  • What loan program you will find your best bet (FHA, Conventional, VA, etc.)
  • What your P.I.T.I. will be

What is P.I.T.I . . . And Why is it Important?

P.I.T.I. is the MONTHLY amount of the loan, which includes:  Prinipal and Interest, Taxes, Insurance.

Principal and Interest are based on your interest rate.  Taxes on the home and property insurance on the home will vary.  They are based on the total amount divided by 12 months.

EXAMPLE:  If your Property Insurance is $450 a year, that will equate to $37.50/month

 

How Interest Rates Add Up

Less 10%Down

@5.75%

@3.75%

  Loan Amt      Princ/Int   Princ/Int  Difference

Purchase Price $250,000

$225,000  $1,313/Mo  $1,042/Mo    $271/Mo

Purchase Price $350,000

$315,000  $1,838/Mo  $1,458/Mo    $380/Mo

Purchase Price $500,000

$450,000  $2,626/Mo

 $2,084/Mo

$542/Mo

 

Be Prepared . . . It’s Not Just for Boy Scouts Anymore

Once the Buyer has obtained their Pre-Approval, they’re reading to  start their home search.   They will know how much they can borrow, they will look at homes which might be LESS then their Pre-Approval and then . . .

  • Offer submission
  • Inspections
  • Title search
  • Appraisals
  • Repair requests
  • Walk-thru
  • Meet final conditions if any
  • Final Loan approval
  • Loan Signing
  • Loan recording
  • Hand over keys

This Home Buyer Guide to Portland Oregon Real Estate offers basic steps to the general process of buying a home in the Portland Metro Area.  Find an EXPERIENCED Realtor(r) to assist and make this a smooth process.   Better yet find an Exclusive Buyers Agent!  And that would be . . . Me!

The Home Buyer Guide to Portland Real Estate Series:

Homes for Sale in Beaverton

  1. 4 beds, 2 full baths
    Home size: 1,558 sq ft
    Lot size: 8,712 sqft
    Year built: 1952
    Parking spots: 2
    Broker reciprocity icon
  2. 3 beds, 2 full, 1 part baths
    Home size: 1,460 sq ft
    Lot size: 3,484 sqft
    Year built: 1994
    Parking spots: 2
    Walk Score®: 58
    Broker reciprocity icon
  3. 4 beds, 2 full, 1 part baths
    Home size: 3,193 sq ft
    Lot size: 10,018 sqft
    Year built: 1995
    Parking spots: 2
    Broker reciprocity icon
  4. 3 beds, 2 full, 1 part baths
    Home size: 2,120 sq ft
    Lot size: 8,712 sqft
    Year built: 1979
    Parking spots: 2
    Broker reciprocity icon
  5. 3 beds, 2 full baths
    Home size: 3,006 sq ft
    Year built: 1941
    Parking spots: 2
    Broker reciprocity icon
  6. 4 beds, 3 full, 1 part baths
    Home size: 3,275 sq ft
    Lot size: 6,969 sqft
    Year built: 2004
    Parking spots: 2
    Broker reciprocity icon
  7. 3 beds, 3 full baths
    Home size: 2,364 sq ft
    Lot size: 4,356 sqft
    Year built: 2006
    Parking spots: 2
    Walk Score®: 25
    Broker reciprocity icon
  8. 4 beds, 3 full baths
    Home size: 3,446 sq ft
    Lot size: 16,552 sqft
    Year built: 1997
    Parking spots: 2
    Broker reciprocity icon
  9. 3 beds, 2 full, 1 part baths
    Home size: 1,518 sq ft
    Lot size: 1,306 sqft
    Year built: 2015
    Parking spots: 2
    Broker reciprocity icon
  10. 3 beds, 2 full, 1 part baths
    Home size: 1,463 sq ft
    Lot size: 1,306 sqft
    Year built: 2015
    Parking spots: 2
    Broker reciprocity icon

See all Real estate in the city of Beaverton.
(all data current as of 6/29/2015)

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Homes for Sale in Portland

  1. 4 beds, 2 full baths
    Home size: 2,132 sq ft
    Lot size: 9,583 sqft
    Year built: 1957
    Parking spots: 2
    Broker reciprocity icon
  2. 2 beds, 1 full bath
    Home size: 738 sq ft
    Lot size: 6,098 sqft
    Year built: 1943
    Broker reciprocity icon
  3. 3 beds, 4 full, 1 part baths
    Home size: 2,083 sq ft
    Lot size: 2,178 sqft
    Year built: 2015
    Parking spots: 1
    Broker reciprocity icon
  4. 5 beds, 3 full, 1 part baths
    Home size: 4,451 sq ft
    Lot size: 13,939 sqft
    Year built: 1994
    Parking spots: 3
    Broker reciprocity icon
  5. 4 beds, 2 full baths
    Home size: 1,873 sq ft
    Lot size: 9,583 sqft
    Year built: 1944
    Parking spots: 2
    Broker reciprocity icon
  6. 2 beds, 1 full bath
    Home size: 1,104 sq ft
    Lot size: 3,920 sqft
    Year built: 1908
    Broker reciprocity icon
  7. 3 beds, 3 full baths
    Home size: 1,824 sq ft
    Lot size: 8,276 sqft
    Year built: 1959
    Parking spots: 2
    Walk Score®: 34
    Broker reciprocity icon
  8. 5 beds, 4 full baths
    Home size: 2,832 sq ft
    Lot size: 4,791 sqft
    Year built: 1907
    Broker reciprocity icon
  9. 4 beds, 3 full baths
    Home size: 2,705 sq ft
    Lot size: 12,196 sqft
    Year built: 1949
    Parking spots: 3
    Broker reciprocity icon
  10. 3 beds, 2 full, 1 part baths
    Home size: 1,276 sq ft
    Lot size: 1,742 sqft
    Year built: 2007
    Parking spots: 1
    Broker reciprocity icon

See all Real estate in the city of Portland.
(all data current as of 6/29/2015)

Listing information deemed reliable but not guaranteed. Read full disclaimer.

 

Buyers Agent Portland – Buyer Focused ~~ Buyer Results

Buyers Agent Portland, LLC is an Exclusive Buyer Agency serving the Portland Metro real estate market since 1999.  The brokerage only represents Home Buyers and never home sellers. If you’re looking for a home anywhere in the Portland Metro area, there is no better representation than an Exclusive Buyers Agent.  We assist investors, folks relocating to Portland area, those moving to Portland in-state, home buyers who are looking to down-size or move-up and of course . . . love working with first-time buyers.  I help Buyers in the Portland Metro market find exactly what they need in the Tri-County markets of Clackamas County, Multnomah County and Washington County, as well Portland cities including but not limited to:

When you’re ready, talk to an Exclusive Buyers Agent.

Exclusive Buyers Agents do not work at real estate brokerages that take listings!

An EBA’s fiduciary duty is: 100% BUYER REPRESENTATION . . . 100% of the Time.

Carla Muss-Jacobs, ABR, CEBA, e-PRO, Realtor
Principal Broker/Owner

Buyers Agent Portland LLC

Office: 503.524.2560
Direct: 503.810.7192

Buyers Agent Portland ~~ 100% BUYER REPRESENTATION . . . 100% of the Time

All rights reserved©

Comments

  1. Carla – Great post for ALL home buyers.

  2. Carla…

    It is SOOOO important for Buyers to make this first step and get the pre-approval. Even if they are still shopping on-line, the pre-approval will give them the target to search for. Nothing more disappointing than finding that perfect Beaverton home or condominium, then to find out it’s more that you can qualify for, or are comfortable paying!

    Great advice, and why Beaverton OR Home Buyers should be getting the Buyer Representation YOU can provide!

  3. It is important to walk through the home buying process for consumers who may not understand how it works. This looks like a good series, Carla.

  4. This is great information for buyers considering purchasing a home.

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