First Time Home Buyers
You have decided that now might be the right time to enter into the Bend Real Estate Market. We understand that for first time home buyer this can be an intimidating and important life experience and it can be quite overwhelming. Our Bend Premier Brokers are here to help you every step of the way... from getting pre-approved for a mortgage, to finding the right neighborhood to fit your lifestyle, to negotiating the purchase, and handling all the paperwork right through to the closing. To get you started, here are some tips and advice to help you prepare for home ownership.
1. Buy Only What You Can Afford
It's easy for home buyers to get caught up in the emotions of buying that first home, so our first piece of advice is to "buy only what you can afford." Your personal finances and ability to cover additional debt is something lenders also take very seriously. For conventional loans, lenders will generally want your overall debt to be no more than 40-45% of total income. Many financial advisors and economists believe this number should be reverted back to the 28/36 rule, where households should spend no more than 28% of their total income on housing costs - including mortgage payments, property taxes, and insurance - and no more than 36% of total income on all debt. The key here is that it is great to live out the dream of home ownership, but it's important to have money left over at the end of the day to enjoy the Central Oregon lifestyle as well.
2. Get Pre-Approved for Your Home Loan
Knowing how much you can afford to spend on a new home is typically the first step in the home buying process. To get a general idea, you may want to check out our mortgage calculator, which can help you figure out what monthly mortgage payments would be based upon the price of the home, terms of the loan, percentage down payment, and the loan's interest rate. But even after you have an idea of how much home you can afford, it is important that you get pre-approved for a loan with a lender as most sellers will require a pre-approval letter as part of the offer. And, by all means, avoid any major financial changes such as changing jobs or financing a large purchase until after you have closed the loan.
3. Don't Forget the Extras
When you are figuring out how much home you can afford, it's important not to forget the extras. Additional items to include in your monthly costs will be property taxes and any homeowner's association dues (which can be found in the detailed property listings on our website), and your homeowner's insurance. Also, as a first time home buyer, you may also need to purchase appliances (e.g., washer, dryer, and refrigerator) and window coverings if your home doesn't come with them. And, especially if purchasing an older home, don't forget maintenance costs. A general rule of thumb is to set aside 1 percent of your home's value for yearly maintenance and repairs.
4. Make a List
Actually you should consider making two lists before you even start looking for your first home. List one should include items that you "must have" in your new home. For example, the number of bedrooms needed for the size of your family, a backyard for children to play in, or perhaps the geographic location such as needing to be close to work. The second is your wish list. These are things you would like to have (e.g., home office, fenced backyard, 4th bedroom, etc.). For first time buyers, you probably are not going to get everything on your wish list, but it will help keep your broker and you on track during your home search.
5. Work with your Bend Premier Broker
Whether it's qualifying for a mortgage, finding the right neighborhood and home, helping to navigate the choppy waters of Bend short sales, foreclosures, multiple offers, or negotiating on your behalf with the sellers, your Bend Premier Broker will be dedicated to helping you find the right home... at the right price. We want you to find the home that will make you happy and successful in your first venture into real estate ownership.
From the first interview that determines your new home requirements to the moment that you receive the keys, we can help you with the complicated process of buying your first home. Don't hesitate to contact us to find out more about how we can make the home buying process easier!
If you are not working with a Bend Premier Broker who specializes in working with First Time Homebuyers, give our owner and Managing Principal Broker Lynnea Miller a call at (541) 771-6390 and she will be happy to get you set up for success. Or you can give our office a call at (541) 323-2779 or fill out the form below for more information.
© 2020 Oregon Datashare (KCAR | MLSCO | SOMLS). All rights reserved. The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange Program of the Oregon Datashare. Real estate listings held by IDX Brokerage firms other than Bend Premier Real Estate are marked with the Internet Data Exchange logo or the Internet Data Exchange thumbnail logo and detailed information about them includes the name of the listing Brokers. Information provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties the viewer may be interested in purchasing. The consumer will not copy, retransmit nor redistribute any of the content from this website. Information provided is deemed reliable, but not guaranteed. Listing courtesy of Bend Premier Real Estate. Data last updated: July 30th, 2021 at 9:46am PDT.