Oregon First Time Home Buyer Program
Getting ready to purchase a home is one of the largest financial decisions you will make in your life. It is also one of the most stressful. This is especially true if you are a first-time home buyer. Even if you have researched your heart out, there are likely many things you will still be unfamiliar with regarding the Oregon First Time Home Buyer Program. This makes the whole ordeal stressful and overwhelming. The good news is we have compiled a list of First Time Home Buyer Tips and information regarding the Oregon First Time Home Buyer Program to help you along the way.
When you think of your current living situation, you probably include things like your rent payment, utility bills, internet bill, and cable bill when you compile your monthly expenses. As a new homeowner, there are other expenses that you will be responsible for. Your landlord probably picks up the bill for water, sewer, lawn care and refuse removal. As a homeowner, these will be added expenses for you.
There will also be property taxes and a homeowner’s insurance cost required by your Oregon First Time Home Buyer Program agreement. You will also want to have some money set aside for any renovations and maintenance costs you will incur. The recommendation is to annually put aside between 1 and 3 percent of the cost of your home to put towards any maintenance and repairs that may come up.
Qualifying for a Loan
A lot of people think that they will not be able to qualify for a home loan because they are unable to put aside the 20 percent for a down payment. Though 20 percent is the recommended ideal amount to use for a down payment, it is not necessarily needed.
There are different loan options that allow home buyers to purchase a home with a much lower amount. An FHA loan allows a purchase to be made with only a 3.5 percent down payment. There are also conventional loans that also offer down payments starting at 3 percent. There are loans that cater to specific types of buyers. Veterans can look into VA loans that specifically help military and veterans. Buyers in rural areas should take a look into USDA loans. The Oregon First Time Home Buyer Program also has options available simply because you are buying a home for the first time.
To get a basic idea of what you can afford and what you can qualify for, use an online affordability calculator or speak with a lender.
Do not Wait for the Last Minute
Surely when you were in school you had a teacher, or one of your parents, tell you that it is a bad idea to wait to do something at the last minute. One of the best First Time Home Buyer Tips extends that advice into house shopping. Many buyers wait until they find that home of their dreams before they secure a loan from a mortgage lender bend Oregon. In many cases, this can be very counter-intuitive. With a pre-qualification, you are able to shop within your budget, make an offer quickly, and attend to any credit issues that may adversely affect your score causing you to receive a higher interest rate.
Speak with More Than One Lender
A big mistake many buyers living in Oregon is they do not take the time to shop around for a lender. Just because your grandma referred their lender to you does not mean that you will get the best rate for your situation. Another one of the best First Time Home Buyer Tips is that you should take the time to shop around and speak with at least three lenders to get the best loan for your situation. Since most buyers are likely to get a loan through a lender that pre-approved them, do your due diligence and research during that stage of your process to make things easier on yourself.
Adjust your Budget Appropriately
Buying a home will initially come with some added expenses such as closing costs, application fees, and down payment. A lender will usually calculate an amount that shows the most they are willing to loan you. Just because a lender is willing to give you a certain amount does not mean that you should spend the whole thing on the cost of the home.
It is a good idea to properly budget your money so you have something left in your savings account for emergencies or unexpected expenses after you close on your purchase. It is recommended that you do not use more than 28 percent of your income on housing expenses. Online calculators can help you figure out what your monthly expenses are going to be so you can make sure you do not go broke and struggle every month.