Oregon Real Estate Queen

by Lori Palermo, GRI – Principal Broker

So … you want to buy a home of your own. You are probably excited and maybe a little nervous if it’s your first home. For many of us, owning a home is, “The American Dream”. The following are some of the beginning steps that will lead you to realize the dream of home-ownership:

Set Realistic Goals

Setting realistic goals is a great place to start on the road to home-ownership. Financial goal-setting that will enable you to afford a home of your own and practical goal-setting about the kind of home you want. Define early on the difference between your wants and your needs. Determine what you can afford and then determine your housing needs. Ask yourself questions like, “Do I really need a two-car garage with RV parking or will a carport work for now?”. Make a wish list and list your priorities in order of importance. Have a financial plan that will help you to achieve those goals. Revisit these goals often during the home-buying process to stay focused, but always be willing to be flexible.

Obtain Sound Advice from Professionals

One of the most important aspects of the home-buying process is choosing qualified professionals to advise and assist you. You will find that almost everyone has an opinion about how, when and even where you should buy your first home. Learn to trust the experts who have been successful in assisting others in achieving their goals of home-ownership. These professionals may include:

• Real Estate Sales People: There are many classifications within this category as well as different designations for some of them:

· Exclusive Buyer’s Agent: represents the buyer exclusively and never represents the seller of a property;

· Buyer’s Agent: represents the buyer during the transaction (but may work for a broker who takes listings);

· Seller’s Agent: represents the seller during the transaction;

· Real Estate Sales Associates: work for buyers and/or sellers on behalf of their Broker (usually the owner of a real estate company or franchise).

These professionals are all licensed to sell property in Oregon, and often times have other designations such as “Realtor”.

• Mortgage Broker/Lenders: Where you go to borrow the money for your home will present you with another set of options. Mortgage Brokers have access to many different sources of funds and many different programs to accommodate all kinds of situations. They will interview you, ask you to provide proof of your ability to repay the loan in question (i.e.: current employment and wages, the debt you owe and your re-payment history). They will request an in-depth credit report, usually from a national credit reporting service and analyze it. They try to paint a picture of your ability to repay your mortgage by using all of the information that they can gather about you financially to show the person underwriting the loan that you are a good risk.

Your local bank or credit union is another alternative and often can provide you with access to local programs. Your real estate salesperson may be able to make suggestions as well. The lender you choose will also hire the appraiser. This person is the professional who determines the value of the property, i.e. sets the limit the lender will be willing to loan against.

• Home Inspectors: Once you have selected a home and have come to an agreement of price and terms it is time to hire a professional inspector to ensure that the home you are purchasing is structurally sound. Some of the things to look for in an inspector are that they are registered with your State’s Construction Board, that they guarantee their findings and that they have references that you can check. Be sure to find out exactly what they are inspecting and get it all in writing. You cannot be too careful! 
• Title and Escrow: In many cases, title and escrow services are available from the same company. Escrow Officers are a neutral third party hired by both the buyer and seller to “close” or complete the transaction. They make sure all of the documentation is in order and that all of the instructions from the buyer, seller and lender are carried out, and then disperse funds to all parties after the legal requirements of the sales contract are met.

Most lenders also require a “Title Search” before they will loan money on a property. The biggest reason for this is to be sure that there are no recorded liens or encumbrances that would lessen the value of the property. Usually during the process of examining the title to a property a preliminary title report is made available to both the buyer and seller, their agents and the lender. This will also show who has ownership in the property, the legal description of the property and a map showing the measurements and boundaries of the property.

It is a very good idea to interview the people who will assist you in this process. Check their references — not unlike the way you would choose a doctor or a child-care provider.

This is probably the single largest investment you will make in your lifetime — It’s okay to ask a lot of questions!

Apply Careful Planning

After you have set some goals financially and in the kind of home you want and/or need and you have hired professionals to assist you, the next step is planning. It has been said that if you fail to plan you might as well plan to fail. Go into this process with a plan in mind. Take the advice of your lender: Keep feeding your savings account and don’t use your charge cards. Make a budget and stick to it. Establish a time frame that is realistic for you. Find out about classes offered in your area specifically designed for first time home-buyers. Ask your bank or financial institution about seminars on mortgage loans. Most of all, plan to spend a lot of time and don’t be in a hurry.

A recent survey showed that on the average, home-buyers physically look at 15 houses before settling on one. Comparison shopping in an essential part of the process, so approach it objectively keeping your goals in mind. A wonderful tool in your search for a home is using the Internet. www.rmls.com allows you to search a specific area and get information on specific houses. Other services help you find information on schools in the area or see maps of the areas you are considering.

Other Helpful Websites:

www.oip.net Oregon Internet Properties

www.rmls.com Regional Multiple Listing Service Website (BEST FOR SEARCHING)

www.realtor.com National Association of Realtors® Website

www.sbor.org Springfield Board of Realtors® Website

www.sps.lane.edu Springfield School District Website

www.4j.lane.edu Eugene School District Website

www.bethel.k12.or.us Bethel School District Website

www.ci.springfield.or.us City of Springfield Website

www.eugene-or.gov City of Eugene Website

ABOUT THE AUTHOR:

Lori Palermo is a second generation REALTOR® and the current President of the Springfield Board of Realtors®. Lori has been assisting first time homebuyers in Lane County for many years. You can reach her at 541-579-5674 should you have any questions.

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