Buyer's Guide

RESOURCE guide To Your NEW HOME!

You have the keys!

Now What? You can start by putting utilities in your name!

Cascade Natural Gas 1-888-522-1130 64500 O.B. Riley Road, Tumalo, OR 97702

CEC 541-389-1980 61090 SE 27th Street, Bend, OR 97702

Pacific Power 1-888-221-7070 328 NE Webster Ave, Bend, OR 97701

City of Prineville 541-447-5627 387 NE 3rd Street, Prineville, OR 97754

Republic Services 541-447-5208 1751 N Main Street, Prineville, OR 97754

Prinetime Internet 541-447-9840 976 NW 3rd Street, Prineville, OR 97754

Century Link 541-447-1227 200 E 1st Street, Prineville, OR 97754

Yellowknife Wireless 541-385-0111 1259 NE 2nd Street, Bend, OR 97701

Verizon Wireless 541-385-0111 1259 NE 2nd Street, Bend, OR 97701

US Cellular 541-447-9848 1565 NE 3rd Street, Prineville, Oregon 97754

T Mobile

541-903-6444 174 NE Combs Flat Road, Prineville, OR 97754

BUYER'S Guide

To finding your DREAM HOME!

ABOUT

Let's Get Your Dream Home "Team Rhoden believes in going that extra mile to provide expert quality services from start to finish."

Kenzie Carnahan Hi!! My name is Kenzie Carnahan. I was born and raised in Prineville, Oregon. I'm a dog mom of 3, a wife and a coffee lover!

I am proud to be on the Team Rhoden team! I'm ready to help you with your home buying and selling needs! As a proud member of the Cascade Hasson Sotheby's International Realty family, I carry the values of hard work, integrity and outstanding client service into everything I do.

Realtor 541.419.4132 kenzie@teamrhoden.com www.kenziecarnahan.com

Visit Us At 785 NW 3rd St. Prineville, Oregon 97754

Meet Our Team We Can't Wait To Work With You

Rachel Rhoden

541-771-6251 rachel@teamrhoden.com @centraloregonbroker facebook.com/rachelrhodensrealestate

Jered Rhoden 541-771-6252 jered@teamrhoden.com @ropin_broker

Kenzie Carnahan

541-419-4132 kenzie@teamrhoden.com @realtor.kenziecarnahan Facebook.com/KenzieCarnahan,OregonRealEstateBroker

Client Testimonials What Some Of Our Happy Clients Think “Kenzie made the process of buying our home a very smooth one.”

Kenzie made the process of buying our home a very smooth one. She listened to our needs and is very hardworking and dedicated. She went above and beyond at all times.

She always showed up no matter what. Her positive attitude and enthusiasm from the beginning until the end of the process never wavered. We had a wonderful experience working with Kenzie. We will definitely choose to work with Kenzie again for our real estate needs.

-Jeff

“We are in the very early stage of home shopping.”

We are in the very early stage of home shopping. I found a house we were interested in so I reached out to Kenzie and within 30 minutes she was already in contact with the listing agent and setting up a walk though for us. Kenzie listened to what we want and most of all she is not pushy. Kenzie makes sure I am informed of every option out there as far as loans go. I absolutely recommend Kenzie 10/10. Working with her feels like working with a friend.

-Tasha

“Kenzie is THE best realtor we’ve ever worked with, hands down!”

She is a woman of her word, she always shows up on time and ready to work. If she doesn’t know the answer, she’ll get it for you. She is totally on your side and has your best interest at heart She even comes over to visit my daughter and I at the home she sold us (which is now Aloha Child Care and Learning Center LLC) month after the sale.

She is “Aunty Kenzie” to our daughter. My husband and I will continue to use her.

-Charlene

Our Expert Roadmap For The Modern Home Buyer

Step One

Find an Agent Look for a licensed real estate agent who is knowledgeable about the neighborhoods you're considering and can help guide your search.

Step Two

Financials Step Three

Start your Search Attend viewings and open houses spanning a range of areas and property types. Now is the time to consider your ideal home's location and amenities.

Before beginning your search, your first step is to get pre-approved for a mortgage loan (unless you will be paying cash for the full price of your home). I can connect you to a mortgage broker, if you don't already have one. Based on your income and credit history, the mortgage broker will determine how much the bank will lend you, which will help you determine the price range of your search.

Step Four

Make an Offer

Reach an agreement with the seller on price and terms. Once you have seen a home you like, you can put in an offer. If your offer is lower than the list price, the seller will likely return with a counter offer. You can choose to accept, reject, or make another offer.

Step Five

Inspect & Appraise

Both important parts of the home buying process, and buyers should do both to protect their financial interest in a home - and give themselves peace of mind that they're making a smart purchase. Inspections and appraisals serve different functions, but both give you the insights you need to avoid large financial missteps.

Step Six

The Closing Closing is the final and likely most important stage of your homebuying journey. Your closing is when you commit to your mortgage loan.

Real Estate Terms Buyer’s Agent vs.

Listing Agent Usually two agents are involved when you buy a home. The “buyer’s agent,” who represents you, and the “listing agent,” who represents the home seller.

Pre-Approval Fixed rate mortgage has a predetermined interest rate throughout the life of the loan, the most common are 15 & 30 years.

Listings One of the first real estate terms you’re likely to encounter is what real estate agents frequently refer to homes for sale as "listings".

The Top 10 Terms You Will Hear On Your Home Buying Journey.

Fixed Mortgage Before you apply for a mortgage or start looking for a home, you should get a pre-approval letter from your bank, which is an estimate of how much they will lend you.

Adjustable Mortgage An adjustable-rate mortgage has a variable interest rate, and the most common are for 5, 7, or 10 years.

Home Inspection After you’ve made an offer on a home, you’ll most likely need to schedule a home inspection. The inspector will go through every nook and cranny, and review things like foundation, walls, etc.

Appraisal

Closing Costs

When you apply for a mortgage, your lender will require an appraisal of the home you want to buy. A licensed appraiser will estimate the home’s value based on comparable homes that have sold in the area and an investigation of the property.

Be prepared to pay a lot of fees when you purchase a home. Typically, closing costs will amount to 2-5% of the purchase price of the home, and that doesn’t include the down payment. Common fees include excise tax, loan-processing costs, and title insurance.

Offers and Contracts

Title Insurance

Once you find the right home, you’ll make an offer on the property with the help of an agent or attorney. If the seller counters your original offer, it’s usually because they want more money or a faster timeline for closing the deal, at which point you’ll have to negotiate.

Contingencies When you put in an offer on a home, you can specify certain conditions that must be met before the deal will go through – these real estate terms are called contingencies.

After all the negotiations are done and the seller has accepted your offer, you should receive a home title report within a week. Most mortgage lenders require you to pay title insurance as part of the closing costs.

Title insurers search the public records to make sure the home seller actually had rights to the title and that there are no liens on the home (like an unpaid contractor or unpaid taxes).

Find a Lender To Know What You Can Afford

Preparing your finances before you start looking for your forever home is an important step. I recommend begin talking to a lender and getting pre-approved. A lender will be able to answer your questions about financing and give you a pre-approval amount you can qualify for.

Our Top 6 Questions To Ask a Potential Lender 1) What type of loan is best for me?

2) Are there any special discounts or load programs I qualify for?

3) What interest rate can you offer me?

4) When will you lock in my rates?

5) What fees can I expect from you?

6) What are my estimated closing costs?

Finances To Get Your Perfect Home

How Much Can You Afford The best way to start the home buying process is by determining if you can afford to purchase a home and if so, how much can you afford. You can do this by getting pre-approved from a mortgage lender. You'll also want to make a list of your income vs debts. This will help you determine a comfortable per month mortgage payment.

Check Your Credit It's always a good idea to review your credit reports and scores periodically, even if you're years away from shopping for a home and a mortgage. If you're planning to buy a home this year, we recommend checking your credit reports and scores as soon as possible. The better your credit history, the more likely you are to receive a good interest rate on your mortgage loan.

Down Payment And Extra Expenses Your largest expense will usually be your down payment. Your down payment is calculated as a percentage of your new home's purchase price. For example, if you buy a $200,000 home and you want to put 10% down, you'd bring $20,000 to closing. Your down payment is due when you close on your loan.

Closing cost are fees you pay to your lender in exchange for originating your loan. Closing cost pay for things like your appraisal, title insurance, origination fee, lender fee and any inspections you must get before you close. Like your down payment, your closing cost are due when you close on your loan and take control of your new property.

Pre-Qualified And Pre-Approval Most real estate buyers have heard that they need to pre-qualify or be preapproved for a mortgage if they're looking to buy a property. These are two key steps in the mortgage application process. Some people use the terms interchangeably, but there are important differences that every homebuyer should understand. Pre-qualifying is just the first step. It gives you an idea of how large a loan you'll likely qualify for. Pre-approval is the second step, a conditional commitment to actually grant you the mortgage.

Getting pre-qualified involves supplying a bank or lender with their overall financial picture, including debt, income, and assets. The lender reviews everything and gives an estimate of how much the borrower can expect to receive. Pre-qualification can be done over the phone or online, and there's usually no cost involved.

Pre-qualification is quick, usually taking just one to three days to get prequalification letter. Keep in mind that loan pre-qualification does not include an analysis of credit reports or an in-depth look at the borrower's ability to purchase a home.

Find a Home

Home Shopping Schedule To View And Tour Homes After you have gotten a pre-approval letter from your mortgage company, we can start looking at home to fit your needs! The pre-approval letter will tell you the top amount of money for which you can purchase a home and get a mortgage.

Use this to look at homes at that price and below.

Once you have what you want in a home and what you need in a home written out, you can look closely at the listings and better determine what you love, like, and dislike.

Finally, finalize the list of homes you want to see. Give your Realtor a list of the homes you're most interested in seeing, as well as the questions you have. Your Realtor will schedule days where you can go and tour the homes you're interested in seeing, and will have time to research the answers to your questions, if they don't know them off hand.

You've now prepared to go view homes! Congratulations!

Make an Offer Presenting A Strong Offer

When To Make An Offer You found your dream home, Congrats! In Todays market where the demand is higher than what is available on the market, it's important to act sooner rather than later.

How Much To Offer We will sit down together and view recent market activity in the area. With market analyses we can get a good look at what the sales and buyers activity has been the last 6 months.

Multiple Offer Situations There is the possibility that a seller has received multiple offers on their home. Don't panic! We have worked on the best tips and practices to get your offer at the top of the list.

Submitting An Offer Below are my best tips to submit an offer on your dream home even if there are multiple offers on the house.

Submit your pre-approval letter with your offer Put down a healthy earnest deposit Make a cash offer if possible Offer more than the asking price Shorten the inspection period to 10 days Be flexible with your closing date Keep your offer clean when it comes to contingencies

Escrow We are almost there, congrats! You will now turn in your Escrow deposit, we will all inspections scheduled, negotiate repairs, and move forward with your loan application.

The entire process from contract to close typically takes between 30 - 45 days.

Inspections The Inspection Period And What To Expect

The Different Types Of Potential Inspections Outside The House Roof Find out how old the roof is and ask questions about any damage or discoloration you see.

Water Bad or old plumbing can cause water damage to your walls, and foundations and cause mold.

Foundation Fixing foundations are costly. Watch out for big cracks, raised or sunken foundation and tree roots.

Inside The House Walls Load bearing walls, lead paints, insulation will be checked.

Appliances Turn on appliances, including the HVAC, garbage disposal to make sure everything runs properly.

Signs Of Age Older homes will be inspected for piping systems, energy-efficient closures, and electricals.

Inspection Time Period The Typical Inspection Period Is Within 10 - 15 Days

It is critical to begin scheduling inspections you want to have done, as soon as we are under contract on your potential new home. This will ensure we do not have any delays in the process.

Recommended Home Inspectors To find a reputable inspector, if you don’t have someone in mind, we work with several that we can give you names for.

Hiring someone who's certified by a professional organization can give you a bit more assurance that the inspector is knowledgeable.

Final Steps

Negotiate Offer Put Together Your Final Offer

Issues typically arise after a home inspection. After inspections have been done, use the reports to negotiate a new offer, especially when major fixes are needed.

1) Ask For Credit For The Work That Needs To Be Done If the repair request is reasonable, sellers usually agree to make repairs. This decision is typically wise because it can be costly for sellers to begin marketing again and find a new buyer. Sometimes the buyer submits a list of things to be repaired, and other times, buyers ask for a cash credit in lieu of repairs.

2) Don't Sweat The Small Fixes Sellers will typically refuse to address cosmetic issues such as loose base boards or chipped paint, or any repair that cost less than $100. Unless something is a building code violation, structural issue, or serious safety concern, just plan to take care of it yourself after you buy the house.

3) Keep your Poker Face Technology has made the use of hidden cameras so easy. Home sellers may be spying on you with hidden cameras that can and will audio and video record.

Appraisal and Approval Home Appraisal If you're a buyer, owner, or seller, you'll want to understand how the appraisal process works and how an appraiser determines a home's value.

An appraisal is an unbiased professional option of a home's value. Appraisals are almost always used in a home transaction and are common in refinance transactions. If it is a purchase-and-sale transaction, the appraisal is used to determine whether the home's contract price is appropriate given the home's condition, location, and features.

Loan Approval Once your loan is approved, you will get a commitment letter from the lender. This documents outlines the loan terms and your mortgage agreement. Your monthly costs and the annual percentage rate on your loan will be available for review. Any conditions that must be met before closing will be documented.

Closing & Moving

Closing Day Getting The Keys To Your Dream Home

Congratulations!!! You've made it! I will meet you at the agreed upon escrow company and support you while signing all of your documents. I will be right there if you have any questions along the way.

Closing Disclosures It includes a summary page, an itemized list of cost related to your loan, details such as: your lenders repayment policy, including late fees and partial payments.

Final Walkthrough Essentially, the final walkthrough allows the home buyers to do one last check.

This is to make sure that the home they're purchasing is in the same condition it was when they agreed to buy it, plus any additional repairs stipulated in the purchase agreement, and that nothing has been removed.

Closing Table You will need to be ready to do a lot of signing and, of course hand over your cashier's check to pay your down payment and closing costs. The papers you'll sign at the closing table should mirror your final set of mortgage disclosures. Someone will guide you through each document, explaining what it means, where to initial, and where to sign.

Who Will Be There Your Agent Title Company Representative

Closing Costs Closing costs can make up about 3 - 6% of the loan amount. This means that if you take out a mortgage worth $200,000, you can expect closing cost to be about $6,000 - $12,000.

Bring To Closing You will need to bring your photo ID. The title company will verify your identity. You will have to pay for closing cost, your down payment, prepaid interest, property taxes, and insurances during your closing, so make sure you have a cashier's check.

Receive Your Keys The sale is "closed" once the deed is recorded with the county clerk you will receive your keys. That normally takes two or three days after you signed everything.

Schedule Your Move 4 Weeks To Moving Day Give 30 days notice to utility companies and rental agent if your are renting Schedule movers/moving truck and buy moving materials START PACKING

3 Weeks To Moving Day Arrange appraisal Complete title search

2 Weeks To Moving Day Get a Home Inspection Prepare Insurance Set up mail forwarding Start cleaning your old house & Keep packing

Week Of Move Finish packing Confirm Movers Close on your new home

F.A.Q Why do I need to be pre qualified for a loan before I can look for a home?

Sellers need to know that the buyers looking at their homes are actually qualified to purchase their home as well as buyers need to know not only what they are qualified to spend but also what they are comfortable spending.

What is earnest money and how much earnest money will I have to deposit that with the title company?

Earnest money shows the sellers that you are a serious buyer. Earnest money can be in varying amounts and is typically a percentage of the purchase price and is typically due within 3-5 days after the offer has been mutually accepted.

Will I get my earnest money back if the contract is not accepted or if the deal falls apart?

If the offer is not accepted the earnest money will not be deposited with escrow and will be returned to the buyer. If the offer is terminated during the inspection period then the earnest money will be returned to the buyer, however if the buyer were to terminate the contract for no cause the earnest money will likely be forfeited to the seller.

How long does the buying process take?

That depends on many things, financing type, if the home is occupied or has a renter living in it, if there are repairs that need to be made prior to closing but typically 45 days is a reasonable expectation after the offer has been accepted.

When should I make an offer?

That can depend largely on the market at the time. If there is limited homes on the market they can go quickly and possibly with multiple offers, however if there are many homes in the same price range the buyer may have more time to think over making an offer.

How much should I offer?

After reviewing a search of recently sold comparables of similar homes you should feel more comfortable deciding what a reasonable offer is along with some guidance from us as your broker(s).

F.A.Q Do I really need a home inspection? How long does an inspection take? How much time is a buyer allowed to do their inspections and ask for any repairsthat may be needed or required for financing?

We always recommend a home inspection; with such a big investment it is cheap insurance to know what you are purchasing. Home inspection can be anywhere from 2-5 hours depending on the size of the home. When negotiating an offer, standard practice is to ask for 10 business days to have the inspection and negotiate any repairs however that is negotiable.

What if there is an uncertified wood stove?

Wood stoves now have to pass EPA standards and be certified. If a wood stove is not certified it will need to be removed prior to the appraisal and this can also be negotiated between the buyer and seller as to who is responsible for the removal. The wood stove will also be required to be destroyed at either the land fill or a scrap yard and will need a receipt from them as proof of destruction for the DEQ notification process. For more info. http:// www.deq.state.or.us/aq/burning/woodstoves/questions.htm

Can you recommend a home inspector, lender or attorney?

Yes, we have several professionals that we consider part of our team that include several inspectors, lenders and attorneys that we are happy to share contact info.

What happens at closing?

You will review and sign several documents, sometimes it can be hundreds of documents and seem redundant but it is all part of the process. You will need to bring ID and possibly a cashiers check for your downpayment and/or closing cost. Our escrow agent will prepare all of those documents and figures for us prior to our signing appointment.

When will I get my keys?

Keys cannot be released to the buyer until the deed has been recorded with the county.

This can be the day that you sign the closing papers with the escrow agent, however it is most likely that deed will not be recorded for 1-3 days after you sign.

This Will Most Likely Happen The date on your contract will change, possibly multiple times. It is a guesitimate and subject to many variables.

You will become anxious or nervous.

You will become irritated or annoyed about frequent and last minute paperwork request with seemingly impossible deadlines.

Buyer and Sellers may negotiate back and forth 2-5 times on a transaction. They will negotiate not only on purchase price but inspection timelines, possible repairs, closing dates, possibly appraisal.

If you terminate a contract based on the home inspection the Seller can and will likely ask for a copy of the home inspection that you paid for.

The property may not appraise at the agreed upon purchase price.

(Buyers) You may not be told how much money to bring to closing until the day of your closing and many times only hours or minutes before closing.

(Buyers) The Mortgage Company will most likely pull another credit report just before and even up to the day of closing. (Do not run up debt or make new purchase's or forget to keep bills current.)

This Will Most Likely Happen (Buyers) The agent on the sign may not return a call about showings in a timely of a manner as you would like. We are persistent and will get you in as soon as possible.

(Sellers) Agents will miss showing appointments and many will be running late.

(Sellers) Some showings will last 5 minutes and some will last 3 hours.

(Sellers) Appointments will be made and canceled last minute or even 20 minutes after the showing was scheduled.

(Sellers) There will be a day when I call and tell you someone would like to see your home and you are going to ask me when ... I may say pull back the curtains they are waiting outside.

😉

(Sellers) Agents or buyers may knock on your door or even drive by and see you outside and ask if the can view the house, if this happens call me!

(Sellers) Expect low ball offers, they happen. We are here to help you get the most for your home but it will require wading through some offers you do not like, do not take it personally.

The Ten Commandments of Buying a Home 1. Thou shalt not change jobs, become self-employed or quit your job.

2. Thou shalt not buy a car, truck or van (or you may be living in it)!!

3. Thou shalt not use credit cards excessively or let current account fall behind.

4. Thou shalt not spend money you have set aside for closing.

5. Thou shalt not omit debts or liabilities from your loan application.

6. Thou shalt not buy furniture.

7. Thou shalt not originate any inquires into your credit.

8. Thou shalt not make large deposits without checking with your loan officer.

9. Thou shalt not change bank accounts.

10. Thou shalt not co-sign a loan for anyone.

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