When preparing for a closing on your refinance or home purchase, one of the documents you will be provided with a few days before closing is a HUD-1 Form. This form provides you with valuable information about your loan.
Summary: Before you start your search for a new home in Portland, you should consider getting pre-approved first, and there are many reasons for this. In this article, we will go over why you should get pre-approved for a mortgage before you begin your home search.
If you are ready to look for a home in Portland, you’ll want to make sure you’ve got all your financial ducks in a row and are ready to go through with a purchase transaction, and that involves getting pre-approved for a home loan. The real estate market in the city of Portland is a relatively competitive one, so putting your best financial foot forward can help ensure a more seamless transaction.
Related: Cost of buying a home in Portland
There’s no doubt that competition is high among home buyers in Portland. Buyers entering the market in 2020 need every advantage they can muster. And that’s where mortgage pre-approval comes into the picture.
Why Get Pre-Approved for a Mortgage Loan in Portland
Pre-approval is basically a financial pre-screening process conducted by a mortgage lender. Here are some reasons why you should get pre-approved.
Understand how much you can afford.
With a pre-approval letter, you’ll know exactly how much you can afford. This can help you budget more effectively.
Make sure you’re a good candidate for a mortgage.
A pre-approval will tell you how much of a loan you will be able to get approved for, essentially informing you if you’re a good candidate for a loan. Knowing how much you can get approved for is a crucial piece of the puzzle.
A more efficient home search.
We began this article talking about how quickly homes are selling in the Portland area. The real estate market is constantly in flux, with available inventory changing from one week to the next. As a result, home buyers need to be as efficient as possible during their search.
A mortgage pre-approval increases your efficiency by allowing you to narrow your search. It helps you avoid disappointment that you may experience if you have your heart set on a home you can’t afford. Pre-approvals can also help you avoid wasting time looking at homes that are out of your price range.
A more enticing offer to sellers.
When you make an offer to buy a home in Portland, the sellers will want to know about your finances. Cash buyers should have money in the bank with bank statements to prove it. Mortgage-backed buyers should have a pre-approval from a letter. Sellers will expect this. That’s just the reality of the Portland housing market in 2020. Being pre-approved will increase your chances for an accepted offer.
Related: Should you buy in Portland?
More Tips for Buying a Home in a Hot Housing Market
Mortgage pre-approval is an essential step for Portland, Oregon home buyers. But there are other things you can do to improve your chance for success. Here are four tips for buying a home in a hot housing market like Portland.
1. Get an agent.
An experienced real estate agent can help you in many ways during the home buying process, particularly when it comes to reviewing the asking price and making an offer. More to the point, a Portland real estate agent can help you submit an offer quickly when the right home comes along.
2. Focus on the big picture.
Quibbling with the seller over “nickels and dimes” or minor issues on a home inspector’s report could jeopardize the deal. When the ideal house comes along, the last thing you want is to lose it to another buyer. So keep the big picture in mind. Be flexible. Don’t sweat the small stuff. And remember what’s at stake — your future home.
3. Study the market.
Researching the Portland real estate market before taking the plunge will pay big dividends later on. For example, if you have a pretty good idea of what homes are selling for in a certain area, you’ll be better positioned to make a timely offer.
Right now, the average home price in Portland is $455,700. You can use that average to get an idea of how much you may be looking at spending when you buy a home in the city. Use the big property listing websites like Trulia and Realtor.com. Zero in on your preferred neighborhoods and look at recent sales prices. Know what you’re getting into.
4. Contact Sammamish Mortgage.
We can help you prepare to buy a home in Portland by pre-approving you for a mortgage loan. This will allow you to shop confidently — and efficiently — within your target price range.
Are You Ready to Get Pre-Approved?
If you are looking to buy a home in Portland and want to get pre-approved before you do, Sammamish Mortgage can help. We are a local, family-owned company based in Seattle & Bellevue, Washington. We currently lend in all of Washington, Oregon, Idaho and Colorado and offer many mortgage programs to our clients. We’d love to help you too. Please contact us if you have mortgage-related questions.