• Home Buyers Guide

    • The home buying process can be a daunting one. That’s why knowing the steps to buying a house, especially here in Oregon, are so important. At Strategic Mortgage Solutions we made this home buyer guide, so you know what to get ready, what to expect, and where to go. Let’s get started.

      Know Your Budget

      Knowing your budget seems like a no brainer, but often we find people don’t understand all that goes into homeownership. Especially considering the principle, interest, taxes, and insurance (PITI). The other things to consider are maintenance, repairs, yard, and all the other costs involved in homeownership. Understanding your overall budget is the first of many steps to buying a house.

      Find the Right Team

      A team can’t be successful without good players that can all work together. Make sure that you find the right mortgage professional and real estate agent.

      Here are some things to consider when picking a lender and agent:

      • Are they working for your best interests?
      • Do you enjoy talking to them? You’ll be talking to each of them for quite a bit of time throughout the entire process of finding and buying a home.
      • Is your team available when you need them to be?
      • How well do they know your area?

      You can schedule no-cost informal meetings in their offices, at a local coffee shop, or anywhere you feel is a comfortable place to have such a meeting. Also, consider doing an internet search for information that could shed light on their services and how their former clients review them.

      Get Pre-Approved

      Your mortgage professional can help you go through a pre-underwrite. Mostly, your lender reviews your housing goals, your present financial situation, and credit history, and then confirms and educates you about the best lending programs available to you.

      The lender will also run the loan through pre-underwrite, called Automated Underwriting System (AUS). Typically, this confirms to your mortgage professional that you are eligible or not, for a particular loan program.

      Without getting pre-approved, most sellers won’t even entertain that buyers’ offer. Make sure your mortgage advisor not only instructs you on what to do but also what not to do financially, while shopping and buying a home.

      Start Home Shopping

      Honestly, this is the most fun part of the process besides getting the keys to the home at the end. Your realtor will help make your search easier, keep you away from buying the lemon, and maybe find that diamond in the rough if that’s what you are looking for. Be open to sharing what you want, don’t want and don’t be surprised if in the middle of shopping you make some changes to your “needs list.”

      Make an Offer

      If you’ve found the right home, consult both your real estate agent and your mortgage professional about how to put an offer on paper. An offer is an outline of what you are willing to pay for a home and maybe even ask for the seller for certain concessions, like pay $3000 of our closing costs or leave the stove, dishwasher, clothes washer and dryer, and the hot tub.

      Get the Mortgage Rolling

      Now that you are on contract, you need to get that mortgage to help you buy the home. Get with your mortgage professional to finalize the lending details specific to your needs and goals. Consider whether to lock the loan or float. Then complete the formal application and gather the needed financial paperwork to prepare to submit the loan to the lender.

      Underwriting and Closing

      They typical underwriting process has two main parts:

      1. The initial underwrite
      2. The final underwriting.

      Don’t be surprised or frustrated with how many documents your mortgage professional is going to ask for before, in the middle, and near the end of the process.

      They aren’t doing it because they like to make their clients miserable. They are doing it because the standard underwriting process requires quite a bit of documentation. That documentation demonstrates how and why a person is qualified to lend to. When things wrap up, the final loan papers will be available for you the buyer to sign and usually the following day the loan has funded, and the keys to the home are yours.

      Welcome Home

      There’s something about having the key to your house and walking in for the first time. Enjoy that moment and enjoy making your new house a home.

      If you have any questions about the steps to buying a house or are ready to be pre-qualified, give our office a call today. We can’t wait to help you get your new home.