What Documents do I need to buy a Home in Portland?
As we stated earlier this week, now is a great time to consider buying a house before the market really turns come spring and summer. There are fewer homes on the market and then there were just a couple months ago which means prices will gradually start to increase. It’s a good time to be looking at homes and finding a mortgage that fits your situation. If you’re unsure how to begin, especially for financing, it’s best to find a lender or a mortgage broker in your area that you trust and feel comfortable with. (As a Portland real estate agent I have a lot of references and referrals that I can offer for lenders, inspectors, escrow in title, appraisals and more.)
A mortgage broker is a little bit different than a typical loan officer although they both work with the buyer to find the best program and financing package for their situation. A loan officer typically will work with one bank and have one set of programs from that financial institution. A mortgage broker has access to hundreds of programs through just about every financial institution across the country. Mortgage brokers may cost a little bit more upfront but they have access to a lot bigger pool of financing options.
Before looking at homes it’s best to have your financing in place first. Apply for a home loan and get a letter of preapproval before touring any potential homes. Here are some of the basics you will need when you apply for home loan:
- A W-2 or pay stubs
- Previous tax returns
- Bank statements and financial statements
- Proof of identity such as a driver’s license or birth certificate
- A detailed list of any assets and liabilities including debts and loans
While this is just a brief snapshot of what you’ll need, each loan is different and may require slightly different documents. The lender needs to know who you are, your credit history, and how reliable you are in paying back debt. Once you have your financing in place, you will need some liquid funds for earnest money deposit and inspections. Earnest money deposit will be anywhere from 1 to 3% of the purchase price of the home and will not be deposited Intel the purchase and sale contract has been mutually accepted by both buyer and seller. Home inspections happen after the initial acceptance and can run anywhere from $300-$800 with additional inspections, if needed, upwards of $1000.
Read more: How to Get Your Offer Accepted
This is just a snapshot of a basic purchase and sale agreement. Every single transaction is slightly different and I’m here to help you through the entire process from financing to closing and beyond. Give me a call if you’re interested in learning more or would like some more clarification on any step of the process.