Buyer’s Guide
What Does The Home Buying Process Look Like?
Chat With Me
Get Pre-Approved
Start Search
Make An Offer & Go Under Contract
Inspections, Loan Processing & Appraisal
Closing Day
Mortgage Questions
How Do I Know If It’s Time To Buy Instead Of Rent?
If you know where you want to live, have a steady and secure income, and are ready for the responsibilities of homeownership, then it’s a great time to invest in property.
How Much Do I Need To Save Up For A Down Payment?
A conventional loan down payment is usually 20% of the sales price, but other types of financing require as little as 3.5% to 15%. A mortgage lender can tell you what types of loans you qualify for.
How Do I Know If I Qualify For A Loan And How Much I Can Afford?
Contact a mortgage lender to get pre-approval for a loan. The lender will ask you some basic questions about your income and debts and can tell you what amount you can be approved for, and how much your mortgage payments will be. Ask me for my lender recommendations!
What Does The Lender Need From Me To Give Me A Loan?
Usually, you are asked to provide your last two tax returns to show proof of income. You should also provide recent bank and credit card statements and proof of your current pay rate. You will also be asked for your social security number so they can run a credit check.
What’s The Difference Between Pre-approved And Pre-qualified?
While often used interchangeably, these terms don’t mean the same thing. Pre-qualification is an estimate of what you may be approved for based only on the verbal information you provide. Pre- approval means the lender has verified your income and debt information and run a credit check.
How Do I Know Which Mortgage Option Is Right For Me?
Your mortgage lender is the best person to advise you on this question. Their products and qualifications change from time to time, so they would know best what products are available to meet your needs.
Questions About The Search
What Should I Do When I See A House Online That I Like?
Call your buyer’s agent: the agent you are working with to find your home. It’s best that you work with one real estate agent throughout your search because that person learns what you like and dislike and will invest a lot of time vetting properties for you. That person also represents your best interests only. When you call the agent advertising the home, you are dealing with the seller’s agent, so, while they can assist you, they are also trying to get the best price for the seller.
Can You Show Me A House If It’s Not Your Listing?
Absolutely. As a buyer’s agent, I can show you any house listed in our MLS system, and I will contact FSBO sellers on your behalf. As mentioned above, working with me as your buyer’s agent ensures that your interests are protected.
How Do We Write An Offer?
When you find the property you want to make an offer on, I will run a Comparative Market Analysis (CMA) to help you determine a fair offer amount. I will also guide you through the additional terms of the contract, such as the escrow amount, closing date, and any additional terms you want to be added to the offer. I will write the offer on a contract form and submit it to the seller’s agent.
What If I Want To Back Out Of A Contract?
You always have the right to back out of the purchase, but you may lose your escrow deposit. If the contract is contingent on a property inspection, you usually have the right to cancel for any reason during the inspection period. Once the inspection period has passed, you cannot back out and keep your deposit unless the seller agrees, or an additional term has not been met.
What Happens If There Are Other Offers On The House I Love?
If a seller receives multiple offers on their home, usually their agent will inform the buyer’s that multiple offers have been received and the buyers have another opportunity to alter their original offer to present their “highest and best” offer. Keep in mind that many factors may influence the seller in addition to the offer price, such as the down payment amount, closing date, and inspection terms.
What Happens When My Offer Gets Accepted?
Once both parties have agreed on all terms and signed the contract, your escrow deposit must be made and you should schedule the home inspection. Your lender will receive a copy of the contract and will begin processing your mortgage application.
Under Contract
What Does “under Contract” Mean?
Under contract means that all parties have agreed on terms, have signed the contract, and the signed contract has been delivered to both buyer and seller. Payment of the escrow deposit is expected but is not a requirement to make a binding contract.
What Is Escrow?
The escrow money, escrow deposit, or good faith deposit is money that is offered with an offer, or as soon as an offer is accepted, to show the seller that you are serious about moving forward with the purchase of the home. Because you forfeit this deposit if you back out of the purchase for any reason not allowed for in the contract, the larger the escrow deposit, the more seriously your offer is taken.
Do I Need An Inspection?
We always recommend that you have a home inspection done. In the scheme of things, paying a few hundred dollars to have peace of mind that there are no hidden dangers or problems is well worth the money.
How Much Are Inspections?
The cost of the home inspection depends on the size of the house and additional inspections requested, such as swimming pool, septic tank, termites, insurance four-point (HVAC, plumbing, roof, and electrical,) wind mitigation, and radon. An average home inspection, without additional inspections, is about $300.
What If My Loan Doesn’t Get Approved?
If you have gone through the pre-approval process and have been forthcoming with all the information requested by your lender, it’s unlikely you will be turned down, but it does happen. Make sure you do not change jobs, purchase big-ticket items on credit, take out a car or boat loan, or open any other new credit accounts while your mortgage is being processed. If your loan does fall through, talk with your lender about changing to a different loan type.
When Can I Start Moving?
When you have the keys! When you are financing your purchase, it takes four to six weeks for your loan to be processed. Once the lender gives the all-clear, closing is scheduled. You will sign your loan documents and both parties will sign documents transferring ownership to you. Unless other arrangements have been agreed upon by both parties, the sellers should have completely vacated the home when they sign the closing papers. You can have your belongings ready to move, and a moving company scheduled before you go to closing. At closing, you will receive the documentation you need to provide utility companies with proof of your new residence.
Real Estate Vocab To Know
Active
The property is actively for sale and on the market. The sellers may have received offers but have not accepted any yet.
Adjustable-Rate Mortgage (ARM)
After an introductory period that could be 3, 5, 7 or 10 years, the interest rate on an adjustable- rate mortgage will be adjusted by the lender in accordance with current interest rates.
Back On Market
This property was under contract with another buyer and their contract fell through, so it is Active again.
Closing costs
The fees that the buyer and seller will owe associated with the home-buying process, such as the real estate brokerage commission and title insurance. Most are paid by the buyer, but the seller pays for some.
CMA
Comparative market analysis or competitive market analysis. A CMA compares the sales price of similar properties in the area to help determine the price of a property.
Contingency
A provision of the contract that keeps the agreement from being fully legally binding until a certain condition is met. For example, the purchase of a home can be contingent upon the buyer selling their home first.
Down Payment
The sum in cash that you can afford to pay at the time of purchase. A conventional loan down payment is usually 20% of the sales price, but other types of financing require as little as 3.5% to 15%. A mortgage lender can tell you what types of loans you qualify for.
Expired
A listing has expired and is no longer active, usually because it didn’t sell in the amount of time agreed upon by the listing agent and the owner of the home. If you see an Expired listing, the owner may still be interested in selling.
Fixed-Rate Mortgage
This mortgage’s interest rate will never change, even if the term of the loan is 30 years.
FSBO
For Sale by Owner. Often pronounced “fisbo” The owner of the home has it listed without an agent representation. A Buyer’s agent can usually still show the home, as many FSBOs will agree to work agents representing a buyer.
Interest
A percentage of the principal that you borrowed from the bank.
Listing
The word “listing” is typically used to refer to the for-sale home itself, although it technically means the agreement between the broker and the owner of the home to market and sell the property.
MLS
The Multiple Listing Service. The MLS is the organization real estate broker’s use to search for and list properties. They collect, compile and distribute all information about homes listed for sale. Membership isn’t open to the general public, although selected MLS data may be sold to real estate listing websites (How Zillow gets listings on their website).
Pending
The property owner has accepted an offer and are under contract with a buyer. Their agreement may be contingent upon a variety of contingencies: inspections, appraisal, financing, and more. The home is not sold just yet.
Principal
After you make a down payment, the rest of the money you owe on your home is called the principal. This is what you will be paying monthly and paying interest on.
Temporarily Off The Market (TOM)
The owner has decided to take the listing off the market for an undetermined amount of time. Typically this is because work is being done, or the home is unavailable for showings at the time. It will most likely be back on the market soon.
Title Insurance
An insurance policy that protects a mortgage lender’s or owner’s interest in real property from assorted types of fraudulent claims of ownership. This is typically paid for by the buyer.
Withdrawn
The listing was withdrawn from the market. This could be for various reasons: The owners may have decided they do not want to sell anymore, or maybe they didn’t like the offers they received. If you love the listing, we can still reach out and try.
Contact Nicole Ferrell
I’m always available to help! Shoot me a text or give me a call for the quickest response. Helping my clients sell their home for top dollar and with the most ease is what I am passionate about – I’m always here to answer your questions.
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About Nicole Ferrell
Nicole Ferrell brings confidence and professionalism to her clients. Born and raised in Southern Oregon, Where she attended Southern Oregon University. She has called the Willamette Valley home for 18 years. Her previous experience in title and escrow prepared her for a real estate career.
Nicole and her family live on the banks of the Mckenzie River. This is where she and her family enjoy hiking on the countless trails, boating in the many local rivers and lakes, and picnicking alongside the Willamette river. Nicole is also a fan of local music and theater scene, she sits on the board of the local children theater, Rose Children’s Theater as their past president.
Nicole’s clients and business associates appreciate her honesty, knowledge, negating skills and friendly outlook.
Her personal ties and professional relationships within the community assist home sellers and buyer transition from and to their new homes with ease and confidence. This high-quality network extends beyond the willamette Valley to open doors for her clients to be at home anywhere.
Nicole Ferrell proudly provides top notch service to home buyers and home sellers throughout Lane County area. Nicole’s energy and passion flow in equal amounts toward providing great service experiences, providing outstanding marketing packages, and helping shape the Lane County landscape as a trusted resource with her referral partners.