7 Steps to Buying a Home in Salem, Oregon

Prequalification is dipping your toe in the water before diving in. It's deciding to buy, learning about financing options, getting numbers and shopping lenders without having your credit pulled or committing to a full application. 

Often prequalification is nothing more than confirming product and pricing on the way to starting an application, but it can also be part of long range planning and goal setting for a purchase sometime in the future.

Whatever the case may be, Mighty Mortgage is here to answer any questions you might have about loan programs, pricing, and home loan qualification. Contact us today! 

What does selling your home look like, what are the numbers? Explore options and get preapproved BEFORE selling your home with a Mighty Mortgage pre-sale consultation.

Receive an estimate of the proceeds from the sale of your current home and look at how to apply the funds toward the purchase of your next one. Can you use part of the sale proceeds to pay off other loans, eliminate those payments, and still have enough money left over to buy the next house? At Mighty Mortgage is won't cost you anything to review the math and find out. Put our experience to work for you! Contact Mighty Mortgage today for a free no obligation consultation!    

You've found the perfect home and you're ready to make an offer. Show the seller you're serious with a Preapproval from Mighty Mortgage Home Loans!

The time to get preapproved is BEFORE the right property comes along and it's time to write the offer. So if you're actively shopping for a home, start your Mighty Mortgage preapproval today and put our experience to work for you.  

The written sales agreement is often called the "earnest money agreement" because upon mutual acceptance of the offer, the buyer is usually required to deposit money into escrow to demonstrate they are earnest. The amount of the earnest money deposit is negotiable but 1% of the sales price is not unusual. 

In addition to the sales price and the amount of the earnest money, the purchase agreement should also specify the closing date and possession dates along with any other contingencies such as; the sale of other real estate, seller paid closing costs, and anything included with the property such as refrigerator, washer and dryer, or other personal property. 

With your home and money on the line you want a mortgage professional with decades of exclusive Oregon home loan experience on your home buying team. Contact Mighty Mortgage today and put our experience to work for you.   

The two most common inspections are the home inspection and the appraisal.

Read your contract carefully but typically the sale agreement will contain a home inspection contingency that allows the buyer to have the home professionally inspected and gives the buyer the option to cancel or re-negotiate the transaction if something unacceptable is discovered. This inspection window is usually limited to the first few days after the seller accepts the offer so when it comes to the home inspection, time is of the essence. 

The home inspection isn't about the value of the home, but rather it's condition. The home inspector crawls the crawl space, looks in the attic, checks the mechanical systems of the home and issues the buyer a detailed report of the findings. Prices vary, but inspections average about $500. 

Otherwise, the lenders appraisal isn't a home inspection so it shouldn't be relied upon to reveal problems with the home like the a complete home inspection should. The appraisal is the lender's eyes on the collateral for lending purposes. The primary focus of the appraisal is market value and this is determined by comparing the the house you're buying with recent sales of similar homes in the surrounding neighborhood. 

For the most part the appraiser isn't looking for problems with the home but if there are any obvious health, safety, structural or code issues the appraisal may come back "subject to" addressing any areas of concern. Depending on the loan program and other factors, an appraisal may not be required for financing and in those cases the buyer can still request one anyway. Prices vary but typically appraisals run about $700 to $850.        

The process starts at prequalification and by the time you're preapproved and under contract with an accepted offer, the process is about collecting title reports, appraisals, insurance binders, and clearing up any requirements of the loan approval.  

Communication is key in the home buying process and with Mighty Mortgage home loans you'll always know where you are in the process and the next step, with clear and constant updates and our commitment to communicate with you your way. Phone, text, email, or in person. Off hours and weekends too. Mighty Mortgage is with you every step of the way. 

At Mighty Mortgage Home Loans we believe knowledge is power! That's why distinguishing what "signing," "closing," and "possession" mean is so important for a smooth move:

Signing the closing documents and depositing the remainder your funds in escrow is not the final closing. There's more to it than that.

A transaction isn't closed until the seller has signed their paperwork, the loan has funded, the deed transferring ownership has been recorded with the county, and the seller's net sale proceeds are available in escrow. 

The gap between signing and closing can be same day or several days and it's generally good practice to sign a day or more in advance of the closing date for scheduling convenience and to allow time for lender and escrow coordinate and process the closing documents and money.

Possession of the property doesn't automatically happen at closing. The possession date is negotiable and it occurs when the buyer receives the keys and has permission to occupy the property according to the terms of the sales agreement. In rare circumstances buyer possession can occur prior to closing, but usually the house is occupied by the seller and they need time to move out after closing. If the seller needs more than a few days to move out a rent back agreement may be arranged. Otherwise if the property is occupied by renters or tenants they may have legal rights to continue occupying the property after closing. Bottom line, purchase agreements vary so check yours to to see what it has to say about the closing and possession dates of the home. It's a negotiable item so be sure to take it into account when structuring your offer and planning your move.           

Richard Gessford has been closing loans for Oregon home owners since 1984. Add Mighty Mortgage to your home buying team and put his experience to work for you!