Buy Your First Home in 8 Steps: Step 5

 Buy Your First Home in 8 Steps 

A Guide for First-Time Homebuyers

Buying a home is the biggest decision you will make in your lifetime! And if you're a first-time home buyer, it can be intimidating. 

 

Avoid becoming intimidated by being prepared. Set yourself up for success from the beginning by having the tools and education you need to be confident in the home buying process.

 

As a Realtor®, I am committed to helping first-time homebuyers confidently navigate the homebuying process.

Congratulations on your accepted offer!!!! You are now ‘Under Contract Phase’ for your new home! 

Did you know on average it takes 49 days for a loan to close? 

What does "Under Contract" Mean?

Being under contract means the offer was accepted and the purchase agreement has been signed. But the transaction is not done yet. 

There are still contingencies that still need to take place before closing. For instance, depositing your earnest money within 3 business days, inspections, or another home needing to be sold. 

What Happens Next?

During this time your Realtor® is working diligently on preparing all the paperwork that will be sent to the Title Company to open Escrow and to your Mortgage Lender to lock in your interest rate for your loan. 

Your Realtor® will also be scheduling your Inspection. Once the inspection is completed, your Mortgage Lender will schedule your Appraisal. 

Within a few days of your accepted offer, you will be receiving a Preliminary Title Report and a Seller's Property Disclosure to look over. 

Escrow

This is a neutral third party who handles all funds until all the contractual obligations are fulfilled by both parties. 

Title Report

Within a few days you and your Realtor® will receive the Preliminary Title Report from the Title Company. This will list the current owners, past owners and type of ownership also known as a ‘Chain of Title’. 

The Title Report will also list any liens or claims on the home such as: easements, encumbrances, or CC&R’s that run with the property. It is very important to read this report and ask your Realtor® questions you may have. 

Seller's Property Disclosure

Legally, sellers in Oregon must disclose any known material defects that aren't readily apparent to the buyers. The Seller's Property Disclosure that lists the properties condition which the prospective buyers may find unfavorable. This disclosure is given to the buyer within 5 business days. 

Other Claims

Encumbrances: Claim against a property by a party that is not the owner. Common types of encumbrances are mortgages, property tax liens, and easements.

Liens: Right to keep possession of property belonging to another until a debt is paid in full. The most common lien is a mortgage lien.

Easements: The use of another's land for a limited specific purpose. The most common type of easement is a utility easement. 

Covenants Conditions & Restrictions (CC&R’s): A legal document that runs with the land and is filed with the county.

MY TIPS:

DO NOT FINANCE ANYTHING! Using your credit cards or opening new accounts will affect your ability to purchase your home. WAIT until you have closed on your home. 

Once your offer is accepted, deposit your earnest money to the Title Company (or your Realtor®) within 3 business days. 

 

In Oregon, sellers must provide the Sellers Property Disclosure to the buyers within 5 days of offer acceptance.

It is so important to follow the timeline written into your contract. Your Realtor® will communicate and keep you up to date on all timelines and contingencies. 

If you need more time on a contingency, your agent will write up an addendum to ask for more time.

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