2024 might be the ideal time to buy your dream house in Oregon. The housing market is finally beginning to recover after going through a rough patch during the pandemic. Although the Oregon housing market is still regarded as a seller’s market, some cities and neighborhoods are facing frequent price drops.
Here we will explore the steps to help you find a house that aligns with both your lifestyle and budget.
Steps to Find the Best House that Suits Your Budget and Lifestyle
1. Prepare a Budget, Consider the Housing Price
Homebuying is indeed a significant financial endeavor, encompassing more than down payments and mortgage installments. Other expenses include property tax, homeowners association fees, insurance, and maintenance costs. The down payment is usually 20% of the home price, paid by the buyer. The median home value in Oregon currently stands at $483,939. For a 30-year fixed-term mortgage rate of 7.29%, you will have a monthly mortgage payment of $3256.
The lender provides the remainder of the balance, albeit with added interest. While some lenders will allow you a down payment of as little as 5% of the house price, with a smaller down payment, you will have to pay mortgage insurance which will increase mortgage payments. Besides, a smaller down payment means you have to borrow more, which in turn increases mortgage payment. The minimum down payment depends on the loan type, underscoring the need to weigh your options to see what works best for you financially.
2. Find a Real Estate Agent in Oregon
Finding the right real estate agent is a crucial step for you in home buying. A lot of the later process will sail smoothly if you can connect with the real estate agent that aligns with your needs. Take recommendations from recent homebuyers in Oregon and interview multiple agents to learn how they can help you in house hunting. Ask whether they can help you find homes that are not yet listed in the market, this will save you from a lot of competition.
If you are buying a home for the first time, it is pivotal to learn whether they have extensive experience helping first-time homebuyers. With a seasoned agent, you will save time and money through their expertise in legal matters, mortgages, and negotiations.
3. Prepare Your Mortgage Approval Letter
When you embark on house hunting, you need to go prepared, and having your mortgage approval letter prepared is the first step for this. It proves to the seller you have the financial means to afford the property and have organized your finances accordingly. Additionally, having the mortgage approval letter allows you to narrow down your search to homes that are suited to your budget.
higher credit score lowers mortgage rate. Mortgage approval involves an evaluation of your current financial stability, credit score, assets, monthly expenses, and how much loan you can be provided based on your financial situation. A higher credit score often results in a lower mortgage rate. However, a mortgage approval letter is not a final loan offer; it only vouches for your eligibility and merit for obtaining a loan.
4. Consider a Suitable Location
Housing prices can vary dramatically depending on cities, even within neighborhoods. Location also plays a pivotal role when you consider reselling your house. The idea of the best location itself is subjective, often guided by individual preferences and life goals. Some may prefer living in budding tech hubs like Portland while others opt for living somewhere off-beat like Florence or Astoria. If you are looking for a middle ground, a location with moderate weather and an abundance of outdoor activity, Grant Pass City in Josephine County Oregon stands out as an attractive option. Situated alongside the Rogue River, Grant Pass has ample opportunities for outdoor activity including river rafting, or fly fishing. With a median home price of about $395000, the city has one of the moderate living costs in the state, falling below the national average. If you are sold on the idea of having your home in southern Oregon consider exploring the homes in Grant Pass.
5. Start the House Hunting Process
Whether you are driving around in your desired neighborhood for a “for sale” sign or browsing through Zillow, house hunting requires substantial time. Make sure to be accompanied by your real estate agent whenever you are visiting a house. Even if you don’t have an agent by then, make sure to take someone knowledgeable or working in real estate. That way, you will be viewed as a serious buyer rather than a casual visitor.
Additionally, while as a new homebuyer you may assess the layout, or other interior or exterior features, visiting with a realtor you will get insight about the home value, its potential appreciation over time, anticipated repair or upgradation needs and an estimation for the repair cost.
6. Make an Offer
After you have found a home that fits your budget you need to act quickly and make an offer. Currently, houses in Oregon typically stay in the market for about 34 days after listing, so you need to make an offer within this timeframe.
Your real estate agent will help you formulate an offer that will specify how much you are willing to pay. This offer is a starting point for negotiation if the buyer is on board. Based on the seller’s response you may move on to a new option or adjust your offer to sign with their preferences.
7. Conduct Inspection and Appraisal
Whether you buy a newly constructed house or a house that has been lived in for years, inspection is a must before you sign the deal. A detailed home inspection will reveal if there are any repairs or issues throughout the house. The inspection covers every aspect of the house, spanning from the foundation to the roof system or the heating or cooling system. Houses that feature special construction like a swimming pool, deck, or retaining walls, may need additional inspection.
To buy a house in Oregon, you need to focus on radon testing, earthquake, and wildfire risk assessment, and wood boring insect inspection. An inspection before signing the deal may unveil potential risks or issues that were undisclosed before allowing for negotiation with the sellers and potentially saving you from future repair costs.
A house appraisal differs from an inspection as its purpose is to assess the actual value of the house to justify lending the money to you. A designated team assigned by the lender will perform the home appraisal.
8. Close the Deal
Once your offer is accepted by the seller, you will need to sign some paperwork that transfers the ownership of the house to you. While Oregon state does not mandate a lawyer to be involved in real estate sales, you still might opt for one to review all the clauses before you sign the paper. At this stage, you also need to work with your lender to finalize the mortgage. You are not obligated to finalize the mortgage with the lender who provided the pre-approval letter, you may explore other options to find the most profitable one.
In conclusion, while it might seem like a daunting task to find a home that suits your budget and lifestyle, especially in a competitive housing market like Oregon, there are numerous options available that may align with your vision. You just need to approach the process strategically to secure the best deal.
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