A GUIDE TO BUYING YOUR HOME
Direct: (503) 780.3688 | Office: (503) 546.9955 Carolyn@CarolynHotyTeam.com | www.FindhomesinPortlandMetro.com
ABOUT ME
OUR TEAM Carolyn Hoty, Realtor Principal Broker
Garrett Conn, Realtor Director, Buyers Division
I have been working full time as a Real Estate Broker since 2006. I love my career, and I am 100% dedicated to getting the job done for you, in the shortest amount of time, and to recover the highest return for your home. I am a “can do”, problem solver. I am always looking for creative ways to get your home sold! I lead an Amazing team of individuals that with our combined efforts, our focus is to provide you with the ultimate customer service experience. Becki Woody is my Director of Operations, and is in charge of operations management, administrative services and marketing. She has been in the industry for over 15 years and brings a lot of creativity to the table. Her ability to keep each transaction organized and on target, combined with her knowledge and marketing acumen, keeps our business behind the scenes running at the highest level. Gina Wood, is our closing coordinator and she plays a supportive role on the administrative side so that we can keep the rest of the team ready to respond quickly to our clients’ needs. Garrett Conn runs the Buyers Division. They work exclusively with the buyer’s side of the real estate transaction. They are great at listening and determining what the buyer’s needs/goals are, and helping them narrow down the right home for their family. They are skilled at negotiating the front and back side of the transaction, and walking the first time to the fifth time, home buyer through the entire process, helping to make it an amazing experience.
With a passion for real estate, I began my career in 2012, and gained a foothold on the residential market. My true passion is helping buyers find homes, I’ve had the privilege of working with a diverse group of buyers and sellers. Focusing on the individual needs and priorities of my clients, with keen negotiating skill and thinking outside of the box for problem solving, allows me to tailor a real estate strategy with the highest possible outcome of success I grew up in the Willamette Valley and graduated from University of Oregon in 2006. I currently reside in Beaverton with my wife, Carey. When I’m not working, my wife and I are usually enjoying the outdoors somewhere in the Pacific Northwest. Depending on the season you will find us out kayaking, snowshoeing, camping, hiking, fishing, and cross country skiing just to name a few. The next time you’re poised to enter the market, I’d be honored to guide you through this important experience. I’m always available to take the very best care of anyone you refer to me. Please don’t hesitate to drop me a line with any questions.
Carrie Koehler, Realtor Buyers Specialist
As an active member in the Portland community for the last fifteen years, I’m very excited to be turning my community focus toward real estate, as a buyer’s agent with the Carolyn Hoty Team. I understand buying a home is one of the biggest investments a person will make in their lifetime, and my priority will be to make the process as stress-free as possible; so clients can focus more on creating new memories. Homebuyers can feel assured their needs will be met with outstanding client-focused services. I pride myself on my excellent listening skills, attention to detail, enthusiasm, and compassion. Being a part of the Carolyn Hoty Team is important to me because we share a common goal: we like to think of our clients as family.
I have strategically aligned myself with Keller Williams Realty Professionals, which has been the number one producing office in the Portland Metro Area. This company has proved to provide the best coaching, training and mentorship, in the industry. It is important to me, to stay abreast of the latest tools, and technology available, to provide my clients with the highest level of service. Along with a great company and talented team members, I have aligned myself with an extended team of professionals, mortgage brokers, staging company, professional photographer, title company, home inspectors, property management, insurance agent, to name a few that have a proven track of success, and are dedicated to supporting an overall amazing customer experience for my clients. In the area of marketing, I focus on working with you to get the home prepared, if needed staging, to show it at its best. I use a professional photographer with a virtual tour and video package, as we only get one shot on the internet. I advertise all my properties in a premier slot on Zillow, along with several other websites, listed in this book, to maximize your home’s market exposure. I work mainly in the Portland Metro area, in residential real estate, some areas that are included, but not limited to, N, NE, SW, NW Portland, Beaverton, Tigard, Lake Oswego, Clackamas and Hillsboro. On a personal note, I am a native Oregonian, one of the few left! I graduated from George Fox University, with a business management degree. I have two boys, who keep me very busy, outside of real estate. I currently reside in Lake Oswego. Some of my interests outside of my career are snow skiing, water skiing, concerts, plays, reading, and I am a foodie, so love to explore all the great eats Portland has to offer! The way that I look at my business, is not as a single transaction, but rather as a business relationship for life, and I treat it as such. I feel very grateful that a majority of my friends, I have had the pleasure of meeting through real estate. I look forward to extending that family of friends, as I continue to grow the business in the future!
Transitioning from being more on the design side of the housing spectrum to real estate has been easy. Real estate, architecture, and interior design are a very important part of my life. Experience as a designer and home stager has given me added strength in utilizing my eye for streamlining and envisioning a multitude of possibilities within homes. I am able to offer guidance in creating ideas for living spaces for those who may need that little extra help in seeing the finished product. A little about me— Originally from Northern California, I received my B.A. in Sociology from the University of California at Santa Cruz. I am passionate about spending time with family, being outdoors, brushing up on my home design skills, reading, swimming, and exploring new neighborhoods. As a strong believer of being a part of my community, I also love to give back in any way I can. I strive to illuminate the path towards making your home ownership dreams become a reality, and I look forward to meeting you and creating lasting relationships.
OUR TEAM
WHAT YOU GET Becki Woody. Realtor Listing Coordinator & Client Care Manager
Since 2003 in the real estate industry, Becki joined Carolyn’s Team in 2009. She has acquired the ability to intuitively tap into the needs of the Team as well as our clients. While acting as the liaison for the Team between real estate agents, clients, vendors, escrow companies and mortgage brokers, she keeps a close eye on critical deadlines for our clients as well as updates all parties to ensure a smooth and efficient closing. Becki also handles all aspects of marketing our sellers’ homes from updating real estate websites and social media to mailing campaigns. She is an invaluable asset to our Team and to our clients. Becki is a straight shooter, and has an uncompromising level of patience and persistence when guiding a transaction through to closing. While keeping each transaction organized and on target, her extensive knowledge and background gives our client’s the edge to insure each transaction progresses seamlessly and in a timely manner. A native Oregonian, Becki has lived in the Portland-Metro area all her life. She enjoys spending time with her family, traveling and the outdoors. An avid Portland Trailblazer fan since she was a child, you’ll most likely find her at a game or watching one on television.
Gina Wood, Realtor Closing Coordinator
Having lived in the Portland area for over seven years, I have truly come to love the surroundings, people and lifestyle in exemplifies. It is unique, off-beat and beautiful! The Real Estate business became a part of my life three years ago and I have greatly enjoyed working in this Industry. My role is to assist rock-star agents from behind the scenes taking care of the paperwork aspect of transactions so that they can be out with their clients doing what they do best! In 2016, Carolyn brought me onto her Team and I have so enjoyed helping our Buyers navigate through a new chapter of their lives! I recently moved to Sherwood with my family of 6 and our sweet German shepherd. We love the quaint little town and enjoy riding our bikes on the many trails, down through old Sherwood and even to get ice cream! Transaction Coordination is my niche in this awesome field of work and I can’t wait to see what this year will bring. I will be here to ensure all paperwork is completed and timelines stay intact as we travel the road to the closing table. I look forward to working with you!
Communication
Your needs always come first! We provide the service we agree to, in the ways that work for you. Whether once a week, once a day, by phone, email or text message. That’s how we’ll do it. You’ll always be kept in the loop! From listing to closing, you’ll know the status of our marketing efforts, the offers on the table and the steps leading to a successful closing once an offer is accepted. We’ll agree on the communication method that works best for you.
Experience and Expertise
The complexities of your real estate transaction will be well-handled. We will capably remove many potential challenges before they have the opportunity to appear.
Satisfaction
We guarantee your satisfaction. Our relationship is dependent on meeting and exceeding your needs. We identify your needs together and our cancellation guarantee protects your right to end our relationship if you’re disappointed.
WHY KELLER WILLIAMS REALTY? Technology
Leading-edge tech tools and training give us the edge in effectively searching for your next home, 24 hours a day, seven days a week, while setting up e-alerts notifying you of a home that fits your interests.
Teamwork
Keller Williams Realty was designed to reward agents for working together. Based on the belief that we are all more successful if we strive toward a common goal rather than our individual interests, We are confident that every Keller Williams professional shares the common goal of serving you, our client, in the best way possible.
Knowledge
Keller Williams Realty helps us stay ahead of trends in the real estate industry through its comprehensive, industry-leading training curriculum and research resources. It’s what prepares us to provide you with unparalleled service.
Reliability
Founded on the principles of trust and honesty, Keller Williams Realty emphasizes the importance of having the integrity to do the right thing, always putting your needs first. It reinforces our belief that our success is ultimately determined by the legacy we leave with each client we serve.
Track Record
Our team takes pride in working for the fastest -growing real estate company in North America and the third-largest real estate company in the United States. It’s proof that when you offer a superior level of service, the word spreads fast.
MOVING CHECKLIST New Telephone Number: ____________________________________________________________________________ New Address: _____________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________
Before you move, you should contact the following companies and service providers Utilities: ______Electric ______Telephone ______Water ______Cable ______Gas Professional Services: ______Broker ______Accountant ______Doctor ______Dentist ______Lawyer Government: ______Internal Revenue Service ______Post Office ______Schools ______State Licensing ______Library ______Veterans Administration Clubs: ______Health and Fitness ______Country Club
Insurance Companies: ______Accidental ______Auto ______Health ______Home ______Life ______Renters Business Accounts: ______Banks ______Cellular Phones ______Department Stores ______Finance Companies/Credit Cards Subscriptions: ______Magazines ______Newspapers Miscellaneous: ______Business Associates ______House of Worship ______Drugstore ______Dry Cleaner ______Hairstylist
CLOSING 101 The closing process finalizes the sale of your home and makes everything official. Also known as settlement, the closing is when the seller gets paid and the buyer receives the deed to the home.
Here are a few things to bring to the closing: • House keys • Garage door opener(s) • A picture ID
What can you expect? The closing agent will look over the purchase contract and identify what payments are owed and by whom; prepare documents for the closing; conduct the closing; make sure taxes, title searches, real estate commissions and other closing costs are paid; and ensure that the buyer’s title is recorded.
What are your costs? Sellers commonly pay the following at closing: • Mortgage balance and prepayment penalties, if applicable • Other claims against your property, such as unpaid property taxes • Unpaid special assessments on your property • Document stamps (or taxes) on the deed • Real estate commission • Legal fee or title insurance premium After the closing, make sure you keep the following for tax purposes: • Copies of all closing documents
WHAT OUR CLIENTS SAY We are so grateful to Garrett and the Carolyn Hoty team for helping us find and buy our dream home. We have nothing but positive things to say about Garrett. We appreciated his thoughtfulness, excellent communication, and advice during the whole process. We always felt he had our best interests at heart. It was also wonderful to work with Gina, who kept all the paperwork and procedural items organized and on-time. We would highly recommend Garrett (and, in fact, have already recommended him to friends). All our best to him and the team, looking forward to staying in touch. Betty J Garrett listened to my needs and persistently looked for the property that met my needs. He was thoroughly professional throughout the entire process of searching for the property, assisting in the process of making an offer, assisting on inspection and due diligence items, and then finally following through to closing and post-closing items. Dan F Carolyn and her team were consistently on the ball with communication, notifying us and meeting with us, seemingly at all hours, to make sure we wasted no time in selling and buying simultaneously. In addition to that, the advice and resources provided for preparing our house for sale was a huge help. John S We would like to highly recommend Carolyn Hoty as one of Portland’s finest Realtors. We found Carolyn through a local “on-line” Realtor finder service. Carolyn contacted us within minutes after we submitted our request. We interviewed several other Realtors before making our final selection and Carolyn was clearly superior to all of them. Carolyn really supported us throughout the selling process. She has a wealth of knowledge about the market and guided us with many ideas for how to prepare our home for sale. Choosing Carolyn as our Realtor was the best decision we could have made in selling our home. She sold our house within two days after listing it and her expert team closed the sale quickly and efficiently. We can’t thank Carolyn and her team enough. Many thanks from Milwaukie, Oregon Pat E Garrett Conn is hands-down the best buyer’s agent we could have asked for! In June 2020, my husband and I made the daunting decision to move out-of-state from California to Oregon AND buy our very first home! Fortunately, some friends in Portland recommended Carolyn Hoty’s team and we are SO GLAD they did! We are very grateful to Garrett for his hard work, diligence, patience and dedication to help us buy our dream home in Portland in just 4 weeks! Garrett was wonderful to work with! He and the rest of Carolyn’s team did everything possible to make our out-of-state home purchase as streamlined and stress-free as possible, which is no easy feat! He did a great job negotiating with the Sellers on our behalf to keep the purchase price and closing costs within our budget, and expertly navigated some other curveballs the Sellers threw our way, making sure they did not derail the purchase of our dream home! Molly F We were introduced to Garrett and his team via recommendation from a co-worker when we were entering the market as first-time buyers and our very first meeting went extremely well. Right from understanding our needs to patiently answering questions about anything related to the buying process, Garrett was with us every step of the way. We were impressed with his attention-to-detail, patience and expert-level communication. You know you’re in safe hands when you have an agent with these qualities. We were able to find a home we love in good time thanks to Garrett’s hard work and we absolutely recommend him and his team to anyone looking to buy or sell. Thank you and we look forward to working with you again! Sandeep K
WHAT OUR CLIENTS SAY
WHAT OUR CLIENTS SAY
We met Carolyn at an open house before we were ready to sell and buy. I was immediately drawn to her: she was kind, she was personable, she showed my children kindness and she told me I had a nice smile. We admired the giant closet in the house. She reached out to us and though we *thought* we weren’t ready to sell she came over, assessed our home, gave us advice and we were listed our home! She and her awesome team staged our home, marketed the heck out of it and helped us sell it for more than our asking price in JUST FOUR DAYS! This made it possible for us to buy a home I never thought I’d own and pay off our other debts. Carolyn used her expertise to make our home look it’s best and her years of knowledge to help us make an offer that a seller would be interested in. She checked in often, she kept us updated, and she was always available when we had questions or concerns. We feel as if we’ve gained a new friend. Rob and Kelsey L
Carolyn did an excellent job from start to finish. Her meetings, phone calls, emails, communication, planning, execution, counsel, negotiation support, delivery and closing were timely, prompt and perfect. I had a contract on the Monday after the Friday the house went on the market. There were two negotiating moments during the deal. Carolyn supported me with clear unbiased information that empowered me to negotiate with confidence, knowing the risks and get the result I wanted. I closed the deal with no doubts whatsoever that it was the best deal possible with every option explored. It was the smoothest sailing in a deal, without a single worrisome moment, while being logical, reasoned, prompt and fair to all parties. It was winning the right way, it was magic and it was just great!!! Oh did I mention .... the house sold above list price?!
Carolyn is an exceptional Realtor. She recently helped us with a home sale and she was professional and courteous throughout the experience. Carolyn treats every client as if they are her top priority; she provides expert guidance and regularly shares valuable updates. I rarely provide 5 stars on every category, but Carolyn epitomizes exceptional service . Likewise, the office team is professional, friendly, and timely. We heartily recommend Carolyn and her team to future buyers and sellers. Jen C
Carolyn and Team did a super job with selling my home. They were on top of the project from day 1. From market analysis of comparable houses, recommending the right listing price, preparing and staging the house, marketing with fabulous pictures and holding open houses. They kept me informed of progress, every step of the way, suggested changes in strategy and moved with speed and accuracy. When the offers came in Carolyn helped me negotiate strongly to get what I wanted. She assisted me with negotiating on the post inspection repair items, finding the right person to do the repairs and to bring the sale to a smooth and speedy close. The entire paper work was handled electronically and communications via a few clear and concise emails and phone calls. We had just one meeting at the start of the project and we next met at closing. Carolyn and team are the masters of coordinating everything and I mean everything from start to finish, putting in the required effort to meet and exceed expectations and this is the second home she has sold for me. I work for a fortune 500 company where Quality, Efficiency and “Winning the right way” is a motto. Carolyn and team are the perfect example of it.
As a Business owner & operator, I can say with qualification that It is not very often one can say ... I was “101% Fully satisfied” with any type customer service, let alone one delivered across the Globe to an overseas investor in Australia, like me. Despite all the imposed difficulties and complications.. Ms Carolyn Hoty and her amazing team of helpers navigated high mountains through the thickest of fog and weathered the storms and took me to a smooth landing repeatedly during the recent sale of My Condo. What else? had also sold my condo at a record price for the area. Thank you Carolyn Hoty again, when the words “thank you” are never enough. I highly recommend this most honest and professional Realtor for anyone selling their property or doing any real estate business albeit for investment or simply domestic. Taleb T I highly recommend Carolyn. I gave her five stars in every category because not only was it an absolute pleasure to work with her due to her professionalism and knowledge, she also did a stellar job on both the sale and purchase of our homes. Our house sold immediately for well over the asking price. Our offer on our new home was accepted and all of our requests were agreed upon. The home we sold was in North Portland and the home we bought was in Forest Heights. She had knowledge of both areas, and I suspect she does well in any neighborhood due to her amazing ability to think outside of the box to accomplish goals. She exceeded our expectations in multiple respects. I will recommend Carolyn to anyone I know who needs a Realtor Gretchen She is a tenacious, knowledgeable, caring, and energetic Realtor! The process was seamless and painless; even when the first offer failed. She got us back on point, troubleshot issues, made complications transparent, and drove home a sensational win! Carolyn is a values driven businessperson, and relentlessly strives for her clients. Thank you, Carolyn! Truong D
John N
Mike and Kris L Carolyn did an excellent job from start to finish. Her meetings, phone calls, emails, communication, planning, execution, counsel, negotiation support, Carolyn did a very professional job. She did her homework and as a result we priced our property $50,000 higher than I thought it was going to sell for and we got a full price offer and closed at that price. We asked for a short close period and Carolyn was able to make that happen and kept it on track when it looked like it was going to take longer. She worked hard, kept track of details and pushed us to prepare the property for showing. Her input for staging the property proved to be right on and it was a key to getting full price. I would highly recommend Carolyn to anyone wanting to list their property and get top dollar. Bill V When I decided to interview agents to sell my condo, I was not surprised to find them either ill-prepared when we met or not even willing to meet in person and see my place. But when Carolyn showed up at my condo, she was professional, prepared with her laptop and comps to review, candid, and eager to get started selling my home. That alone should be enough to win a client over (and it was), but then once we hammered out a contract and Carolyn went straight to work on selling my place, I noticed how hard she worked and how she was always involved and putting forth an effort. I was amazed. In a sea of real estate agents where a person can sometimes feel they have been set adrift, Carolyn navigated me calmly through the process of selling my home. She is great to work with, great at what she does, and she is a professional through and through. I cannot recommend her highly enough. Thank you Carolyn! Paul G
Preliminary Financing Concerns
Congratulations!
Most homebuyers find that they need to finance at least part of their home purchase. Therefore, the first stage in finding the right home is to review your personal financial situation and make an informed estimate of your true purchasing power. Your purchasing power will depend on:
• Your Income Buying a home is one of the biggest investments and financial decisions you can make. While it is a major commitment and
• Your Credit Rating
responsibility, it is also a very exciting time in your life. We are proud that we get to be an intricate part and we’re excited about
• Other Monthly Expenses
soon having the privilege of handing you the keys to your new home! . With that said, it's important to keep in mind that home buying is a complicated process.We will be working hard to make sure
• Your Down Payment • Available Interest Rates
that everything is as rewarding as possible, guiding you at every step and making sure that your needs and desires are met.
How Much Home Can You Buy?
.
The next four steps discussed will help you review home financing and get you prepared to speak in detail with a lender. A more
This guide was designed to inform you about all steps of the home buying process so that you can feel confident, make informed decisions and act as an educated buyer. It will help us understand the things that you're looking for in a home so that our search can be made as easy as possible.
thorough overview of the financing process is covered later in this guide.
Step 1: Make a rough estimate of how much home you can afford based on your income. Here are a few methods that will give you an approximate starting point for how much home you can afford.
. Please take some time to review carefully all of the information presented here. If you have any question about the topics discussed, we will be glad to go over them with you in detail. Since every real estate transaction is unique, you will most likely
Method 1: The price of your home shouldn't be any more than 2.5 times your annual salary.
Annual Salary
Maximum HomeValue
Annual Salary
Maximum HomeValue
have questions or concerns not presented here. We’re here to assist you at each step, to answer your questions and to
$50,000
$125,000
$110,000
$275,000
help you find the home you desire!
$60,000 $70,000
$150,000 $175,000
$120,000 $130,000
$300,000 $325,000
$80,000 $90,000
$200,000 $225,000
$140,000 $150,000
$350,000 $375,000
$100,000
$250,000
$160,000
$400,000
Method 2: A house payment should be no more than 25% of your gross monthly income (before taxes and deductions)
Annual Salary
Gross Monthly Income
Maximum House Payment
$50,000
$4,167
$1,250
$60,000
$5,000
$1,500
$70,000
$5,833
$1,750
$80,000
$6,667
$2,000
$90,000
$7,500
$2,250
Your lending institution will ask you to give a complete profile of your financial situation. In addition to your income, your
$100,000
$8,333
$2,500
existing assets and debts will determine how much money that you can borrow.
$110,000
$9,167
$2,750
Below you'll find a list of documents you may be required to produce regarding your financial situation when you speak to a
$120,000
$10,000
$3,000
lender. It is a good idea to gather these things now and have them on hand. You will need to provide this information for all
$130,000
$10,833
$3,250
primary and coborrowers.
$140,000
$11,667
$3,500
$150,000
$12,500
$3,750
$160,000
$13,333
$4,000
Step 3: Gather the Documents / Take a look at your Assets and Monthly Expenses
Keep in mind that these are guidelines. There are many other factors that determine how much home you can afford.
• Social Security Number • W2 Forms from the previous two years • Pay Stubs (most recent months) • Employment History Summary • Bank statements for checking and savings accounts (past
Step 2: Take a close look at your credit report.
• Creditor Information. This includes debts like:
3 months)
Your Credit History is one of the principal measures used by a lender to determine your interest rate. The better your credit, the better lending terms your bank or lending institution will be able to offer you. A higher interest rate translates into a higher monthly mortgage payment, and so your credit score will directly affect how much money you can borrow and at which homes you should be looking. . You should be aware of what information is on your credit report by obtaining and reviewing copies of your credit report from the three main credit report agencies.
• Student Loans • Auto Loans • Credit Cards • Child Support Payments
• Federal Tax Returns (for the past 2 years) • Complete Record of Assets • Stocks, bond, and investment accounts • IRA / Retirement plan • Life insurance policies • Automobiles owned • Construction loan • Gift letters • Documentation of other income
Improving any of these areas will help you qualify for better lending terms, so keep that in mind before you speak with a mortgage professional. If it's possible to pay
Equifax www.equifax.com 1.888.766.0008
TransUnion www.transunion.com 1.800.888.4213
Experian www.experian.com 1.888.397.3742
off a car loan or a credit card balance before you seek financing for your new home, the preferential financing terms that you could receive may save you thousands of
Remember that there are several factors that affect your credit report including your payment history, your current ratio of debt
dollars over the life of your mortgage.
to income and signs of responsibility and stability. And since not all creditors report to all three agencies, it's best to order a report from all three institutions. Your goal in ordering all three credit reports is to make sure that all of the information stated on each report is accurate and correct. . If there are any discrepancies on your credit report, it's important that you contact the rating agencies and have those records corrected. Taking the time to verify and correct your credit report before you speak to a lender will help eliminate hassles later on.
Step 4: Talk to a Qualified Lender How Does Your Score Rate? Exceptional Great
Above 780 740 - 780
Good
690 - 740
Fair
620 - 690
Low
Below 620
The average credit score in the US is 678.
After looking at this information for yourself, it's time to speak to a qualified lender. A professional advisor will not only be able to give you information on the best rates and terms available in the current market, but he or she can also explain to you what options you have given your unique financial situation. Talking to a lender at this time will help you get a more accurate idea of what you can afford. When we begin to look seriously at homes you'll go back to the lender and shop around for the best loan available. .
.
We’ve made a commitment to help you find a home that suits your wants and needs, so now it's time for you to articulate exactly what those wants and needs are. By sitting down and considering the kinds of things you're really looking for, you can save a lot of time and frustration by avoiding houses that aren't for you.
PreQualification is only a loan agent's opinion that you'll
Interior Features Air conditioning Carpeted floors Hardwood floors Tiled floors Walkin closets Other
Home Type Single Family Detached Duplex Condominium/Townhome Apartment Other
formal approval is not issued. . PreApproval means your loan application has been taken
Extensive cabinet/ counter space Home theater Fireplace Basement
through a rigorous procedure. Preapproval saves you the time of looking at houses you can't afford. . Preapproved buyers are ahead in the home buying game. If you make an offer on a home and then apply for a loan instead of the other way around, you are at the mercy of
Patio/Deck Pool Outdoor spa Extra parking
shop around.
Elementary school Middle school High school Local park Recreation center
A preapproval letter from a lender will also give you an edge when multiple offers have been made on a house. Preapproved buyers generally close escrow more taken care of.
Now that you've detailed your ideal home it's time to put your priorities in order. What is the most important thing for you,
these five areas of your home's features/benefits from 1 to 5, 1 being the most important, 5 being the least important: price,
Mortgage Overview
location, size, amenities & design, others/special.
When considering your financing options, you'll want to review many different things about the loans offered to
Size
What kind of lender are you borrowing from? Home loans are available to consumers from thrift institutions commercial banks, mortgage companies, credit unions and mortgage brokers. . A Mortgage Broker is unlike other lenders in that the broker does not lend money to you directly. A broker will help find you a lender and secure the terms of your arrangement.
Other
Mortgage Broker vs. Traditional Lender A Broker may have access to several lenders and therefore can offer you a wider selection of loan products and terms. He or she can help you shop for the best deal based on your circumstances. (A Broker is not obligated to find you the best deal possible, so be sure to ask questions.) . For their work, brokers are paid a fee in addition to the
what areas can you compromise? Chances are that the perfect home for you won't be exactly what you put down on paper. Rank
Location
you shop for a lender or loan.
the lender who now knows that you don't have time to
Community Features
quickly, since most of the paperwork has already been
Price
home loan features and the things you should consider as
be able to obtain financing. No verifications are made, so
What are you looking for?
Lot Features Large yard Small yard Fenced yard Garage Carport Other
Pre Qualification vs. Pre Approval
you. In this next section you'll find a basic overview of
lender's origination fees. Brokers set their own compensation, so you'll need to ask anyone you speak to how their fees are determined.
What are the terms of the loan? All the terms of a loan matter, not just the interest rate. You'll want to get a complete picture and break down of what a given offer means to you on a monthly basis as well as how much money you'll be spending over the life of the loan. . At a minimum, you should request quotes with a few different scenarios and compare the financial impact of each situation before you determine your best course of
1. Even if you decide to work with a traditional lender, ask if a broker is involved. Many financial institutions act as both lenders and brokers, so you should ask if a broker is involved on any loan you are offered. . 2. Ask your mortgage broker how their fees are assessed. Sometimes these fees may be negotiable.
action.
Loan Type/Rate Types
1. You can ask your lending institution for a list of its current mortgage rates. You'll want to ask your lender whether you're being quoted the lowest rate for the day or week. 2. If the rate quoted to you on a loan in an adjustable rate, ask when and how your loan payment will vary. 3. Ask what the loan's Annual Percentage Rate (APR) is. The APR will express as a yearly rate all of the fees associated with a loan including the interest rate, points, broker fees and other credit charges you may be required to pay. 4. For better understanding, ask your broker or lender to quote you a dollar amount rather than just a number on any points you are being charged on the loan. 5. If you are satisfied with a proposed interest rate, you can ask your lender if he or she can lockin the quoted rate. There may be a fee associated with locking in a rate and the agreement will generally only last 60 to 90 days.
Fixed Rate (Traditional) Loan
What Additional Fees will be required in this Loan? .
These loans are usually structured with repayment terms of 15, 20 or 30 years. The lender will agree to charge a fixed interest
Most loans have additional fees. You can sometimes borrow the money need to cover these fees, but that will obviously
rate over the life of the loan. With this loan type, your monthly mortgage payments will remain the same for the length of the
increase the overall amount of debt you undertake. Some fees are paid up front, and others are not due until closing.
term.
Loan Origination Fees Adjustable Rate Loans (ARMs)
The institution that actually loans you the money will generally charge on origination fee for processing the loan. They are
Also known as variable rate loans, ARMs often offer a teaser rate for the initial period of the loan. This introductory interest
often expressed as a percentage of the amount of the loan.
rate is usually lower than rates offered for fixed rate mortgages. The interest rate will fluctuate over the life of the loan based on market conditions. Changes in rate happen at certain time periods, and the lender can set both a maximum and minimum on the rate of fluctuation.
Federal Housing Administration (FHA) Loans Federal Housing Administration (FHA) insured loans are made by private lending intuitions such as banks, savings & loans, or
Underwriting Fees Certain lenders will charge a fee to investigate your credit worthiness and determine if you are likely to repay your loan.
Broker Fees Typically paid at closing, a mortgage broker may charge you a fee in addition to the origination fee. If you are working with a broker, be sure to check with them what their fee is.
mortgage companies to eligible borrowers for the purchase of a home. To secure an FHA loan, a borrower must apply and qualify with a certified FHA Lender. Additionally, eligible borrowers must be able to pay a minimum of 3.5% of a home's
Transaction / Settlement / Closing Costs
purchase price. If the loan is approved, FHA will insure a portion of the loan's value to the lender.
These fees lump together several charges for: application fees, title examination, abstract of title, title insurance, property survey fees, deed preparing fees, other mortgage fees and settlement documents, attorney fees, recording fees, notary fees,
Veterans Administration (VA) Guaranteed Loans
appraisal fees and credit report fees. The Real Estate Settlement Procedures Act requires that a lending institution provide a
VA Home loans are available to qualified Veterans and their spouses. Private lending institutions issue the loans which are in
borrower with a good faith estimate of closing costs at the time of application. This estimate must list each expected cost as a
turn guaranteed by the Veteran's Administration. The VA does not require any down payment on VA Guaranteed loans and
range or as an exact amount where applicable.
allows the borrower to receive a competitive, fixed interest rate.
Points The lender or broker can charge you points on your mortgage. One point equals 1 percent of the loan amount. These are simply fees paid to the lender or broker that are often linked to the interest rate, and are usually paid in cash to the lender or broker at closing. A lender may offer you a lower interest rate, but charge more points, so it's important to compare offers.
1. Never hesitate to question a fee that you don't understand. Your lender should give you a thorough explanation and make sure that you know what you're paying for. 2. Sometimes lenders lump fees together. You can ask for a break down in that lump. 3. Certain fees, like the Brokers fee or the amount of Points assessed on a loan are negotiable. It never hurts to ask your lender if they can get you a better deal.
The Down Payment / Private Mortgage Insurance The largest upfront cost in purchasing a home is the down payment. Most traditional lenders expect borrowers to put at least 20% of a loans total amount down. Borrowers who are unable to do so are required to purchase Private Mortgage
1. Be sure to get a clear indication of the down payment
Let the Search Begin!
percentage required by your lender. You will also want to know what kind of documentation your lender requires to verify that you have funds for the down payment.
Insurance (PMI). This insurance protects the lender in case . of default by the borrower.
Interview Questions for your Lender
2. If you are not able to put down the traditional 20% on your purchase and Private Mortgage Insurance is required, ask your lender what the total cost of the
1. What kind of loans do you offer? 2. What kind of loan would you recommend for me? What are the advantages and disadvantages of this loan structure?
insurance will be, how much it will increase your monthly payment, and how long you will be required to carry the
Home shopping can be both exciting and exhausting but doing some preparation before you hit the street to look at homes will help out tremendously.
insurance. Chances are you've already started your search online. In
3. What is the current mortgage interest rate? Is the rate
addition to the sites that you've already visited, I would suggest
quoted the lowest for that day or week?
you look at: 4. What is the Annual Percentage Rate (APR) of an offered
• www.kw.com • www.findhomesinportlandmetro.com • www.RMLS.com • www.zillow.com
loan?
• www.realtor.com • www.kw.com • www.zillow.com • www.RMLS.com
5. Is the loan rate adjustable or fixed? 6. What are the Discount Points and Origination Fees?
• www.trulia.com • www.realtor.com
7. What are all the Costs?
15 That's the average number of houses a homebuyer will look at before they choose one.
8. If the rate is adjustable, how will rate and loan payment vary? 9. What are the Qualifying guidelines for this loan? 10. What is the lender's required down payment for this loan? 11. What documents will need to be provided? 12. What are the closing costs? 13. Will the Lender Guarantee the GFE?
ASK US
for a loan comparison worksheet that you can print off and use to compare lenders and loan options. We can send you one today!
What sites have you visited in your home search? When you find a listing online that you’re interested in, please contact us and we’ll be happy to set up a private showing. Not only will we setup the appointment, we will also search the MLS for similar properties so you can look at other homes like the homes you’ve found.
Here are some great tips to keep in mind when you're home shopping: 1. Don't view too many properties in one day. 2. Bring a notebook, pen and/or digital camera with you as you search. 3. Keep a folder with flyers or print outs on properties that you've viewed. 4. When you find a property you like, visit it at different times of the day.
14. Does the lender offer a loan rate lock? Is there a fee for the rate lock?
5. Don't be put off by interior decorations they can and will be changed.
Questions, Questions
Making an Offer
When you find a home you really like, there are some more probing questions you might want to ask. And remember, a professional home inspection will be necessary to completely answer most of these issues.
General 1. When was the home built? 2. How many owners has it had? 3. How does the asking price compare to other houses in the neighborhood? 4. What did the property sell for when the current owner purchased it? What year was it purchased in? 5. Is the existing mortgage assumable? 6. What are the annual property taxes? 7. Will the taxes increase with the transfer of deed and a new market price? 8. Is there a builder's warranty on the property? What are the details of that warranty? 9. Will there be additional structures built around the property that could distort the view?
Outside
When you've found a home that you're interested in, it's time to make an offer. Our Team will draw up a contract with your offering price and necessary contingencies into a formal contract. . You will want to review this document carefully and make sure it states your terms exactly. If the offer is accepted by a seller, this contract will become a legally binding agreement. . In addition to an offer contract, you will need to provide earnest money as well as a letter from your lender indicating your qualification to purchase. . Earnest Money typically equals between 1% to 3% of the property purchase price. You will not be at risk of losing your earnest money as long as you do not default on your contract. The amount will be credited towards the purchase price of the house at closing. . After you've made your offer, the Seller will be able to:
1. What is the level of ground maintenance that will be required? 2. Are there any structural anomalies or problems with the outside area of the property?
Inside 1. Are the appliances built in? 2. Is there adequate insulation? 3. What improvements/additions has the homeowner made to the property since purchase?
1. Accept your offer 2. Execute a counter offer 3. Reject your offer In most cases, a seller will not accept your initial offer outright. Typical counter offers include modifications to:
• Purchase price • Closing date • Possession date • Inclusions
As a buyer, you will be in a better negotiating position if:
• You have been pre-approved for a mortgage • You are not selling a house at the same time • You have not loaded your offer with other contingencies
4. What appliances is the seller offering in the sale?
Major Systems 1. What is the age and condition of each major system in the home (plumbing, electrical, heating & cooling)? 2. What type of fuel is the home heated with? 3. What are the average monthly utility costs? What are the winter and summer highs and lows? 4. Are there any major repairs that will need to be made before someone can live in the home?
When you make an offer on a house, you should be prepared for the negotiations to go back and forth several times before both parties agree to the terms. You might also have to compete with other interested buyers in certain market conditions. . When an agreement is reached on all issues, and both the seller and you as the buyer have signed the offer, you are both under a legally binding contract.
Getting to the Finish Line
Property Survey Your lender will require that a legal land survey be completed of any property on which they issue a mortgage so that they can obtain a clear lender's title insurance policy. . A surveyor will determine:
• Whether the house is within the property borders • Whether there are any encroachments on the property by neighbors • The extent to which any easements on the property may affect legal title
Your offer's accepted! Now it's time to get to work. Before we can close on the purchase of your new home, we need to take a few more steps to make sure the purchase is a sound decision.
Step 1: Buy with Confidence Home Inspection
The survey will also provide you as a new owner with invaluable information. The report will let you know exactly where the property lines are and will let you know if there are any building restrictions that could prevent you from adding new features to your home, like a new fence. . The amount of detail provided in a surveyor's report varies based on the kind of survey you ask for. Obtaining more information will cost more money. .
As the buyer, you have the opportunity to hire a professional inspector to evaluate the condition of the home. An inspection clause is included in the written contract given to the seller. The goal of a home inspection is to give you an objective, independent and comprehensive analysis of the physical condition of your potential new home and check for any safety issues
. Step 2: Clearing the Home Title
..
Simply explained, "title" is the right to own, possess, use, control and dispose of property. When you buy a home, you are actually buying the seller's title to the home. A deed is the written legal evidence that the seller has conveyed his or her ownership rights to you.
A professional inspector will check on the structure, construction and mechanical systems of the house. This usually includes
Before the closing meeting when the actual transfer of
What is Title Insurance?
checking:
ownership occurs, an attorney or title specialist generally
Title insurance is the best way to protect yourself against title
conducts a title examination. The purpose of the title
defects that have occurred in the past, which may not appear
that might otherwise be unknowable.
Electrical systems Plumbing and waste Disposal Water Heater Insulation
Ventilation HVAC System Water Source and Quality Waste Disposal Pests
Foundation Doors Windows Ceilings Walls
Floors Roof Radon Gas Asbestos Lead Paint
You will receive a written report of the inspection and an estimate of the cost of any and all repairs. If you choose to be present during the inspection, you can ask your inspector about unique features of the property and get his or her opinion on the necessary maintenance for each different area. . Depending on the results of the inspection, you will have the opportunity to:
• Negotiate that repairs are made by the seller before final purchase of the property • Renegotiate the purchases price to account for necessary repairs • Get out of the written offer if major problems are discovered
until after you've taken ownership of the property. examination is to discover any problems that might
.
prevent you from getting clear title to the home.
Before a title insurance policy is issued, a title report is
Generally, title problems can be cleared up before
prepared based on a search of the public records. This report
settlement, but in some cases severe title problems can
gives a description of the property, along with any title
delay settlement, or even cause you to consider voiding
defects, liens, or encumbrances discovered in the course of
your contract with the seller.
the title search. It is different than casualty insurance in that
.
you pay a onetime fee and it protects against past (as
Some "clouds on title" can be corrected relatively easily
opposed to future) events.
while others can become quite complicated to remove.
.
You should insist on being kept informed of every step in
Title insurance will protect you against title defects that
the title examination process. If title problems are
were not discovered in the course of the title search. If such
uncovered, it is important for you to understand your legal
a defect were discovered later, your title insurance would
rights.
cover you.
NOTES
If title problems are severe enough and not covered by insurance, you could actually lose your house. A title insurance policy protects you and your heirs against title defects for as long as you own your home. .
Step 3: Getting an Appraisal
.
Once you have determined that there are no defects on title and all inspection concerns have been resolved, it is time to order an appraisal. . An appraisal is an estimate of the value of a property made by a qualified professional. The appraisal of your prospective home is as important as your credit history in obtaining a mortgage. After all, the property you are purchasing serves as the collateral for the loan. . Although the primary goal of the appraisal is to justify the lender's investment, it also protects you from overpaying. Your lender will generally hire the appraiser and will charge you as the buyer a fee for the service. . If the appraisal falls short of the amount you wish to borrow you may be refused a mortgage or offered a smaller amount on the mortgage. Your offer contract will be contingent on whether the appraisal comes in at or above the purchase price you and the seller have agreed upon.
Step 4: Closing All the preparation is complete. Now it's time for closing! Closing is the legal transfer of ownership of the home from seller to buyer. It is a formal meeting that most parties involved in the transaction will attend. Closing procedures are usually held at the title company or lawyer's office. Your closing officer will coordinate the signing of documents and the collection and disbursement of funds. .. In order to ensure a smooth closing you will need to:
• Obtain a homeowner's insurance policy and provide this information to your lender and/or closing agent. • Review the Settlement Statement or HUD1 that your lender or closing agent will provide you 1 to 2 days before closing. These documents will contain a detailed description of all costs associated with the transaction, including the exact dollar amount you will need to bring to closing.
• Verify with your lender and/or closing agent any other items that you need to bring with you such as a valid driver's license or other form of identification.
• Conduct a walkthrough of the property prior to closing. This will give you an opportunity to see that the condition of the house is the same as it was at the time of contact. Additionally, you will be able to ensure that any repairs agreed to by the seller, based on the inspection, have been completed.
CAROLYN HOTY
Principal Broker, BA • Multi Million Dollar Producer • PMAR Masters Circle Diamond-Platinum Member
Cell: (503) 780.3688 Office: (503) 546.9955 Fax: (503) 336.6225 carolyn@carolynhotyteam.com
www.findhomesinportlandmetro.com
9755 SW Barnes Rd, Ste 560 Portland, OR 97225 (503) 546.9955
Each office is independently owned and operated