Financing Real Estate

Tips to Set Up Financing

Getting yourself set up for financing real estate is a big step but one every person should do sometime in their life. Having all your ducks in a row, so to speak, will speak volumes to loan officers and get you started in a powerful direction.

1. Know your own finances

Before you sit down with a lender or look at home, go over all your own finances with a fine tooth comb. This is much more than knowing how to balance your checkbook. This is making sure you know where ever dollar goes every month and controling the spending of those dollars. Knowing your credit score and correcting any mistakes can help put you on the path where finances and a mortgage are not a stressful thought.

2. Get some reserve funds saved up if you haven't already.

Yes, you are still buy a house with almost nothing to zero down but it can be stressful especially if your credit score is less than perfect. You will still need out of pocket funds for certain items along the way such as an earnest money deposit and inspection costs. It helps to have no less than 1-3% of the purchase price in the bank. Remember, the bank also looks at how much you have in savings and if you are prepared for an emergency in case something should come up while you are in the home. They don't want you sacrificing your mortgage payment to pay for a new furnace.

3. Shop around for the best loan and get a letter of pre-approval

Once you have some funds built up, sit down with a lender and go over all your options for loans. This can be with a bank, credit union or mortgage broker and each has their own pros and cons. Mortgage brokers tend to be more expensive up front but have access to thousands of loans and programs that one particular bank won't have. [Our Enterprise real estate connection has more for buyers here]

Once you have a lender you trust and fees you are comfortable with, have that lender write up a pre-approval letter stating you can afford a loan. This can be left blank to how much you are approved for or it can state the amount but it's a great letter to present to sellers when submitting an offer. It shows you have done your homework and are a serious buyer not wasting the sellers time.

With these 3 simple steps in place, you can launch yourself into homeownership confidently and ready to go! Please send us an email below if we can help in this process in any way when buying La Grande OR real estate, Baker City real estate or any real estate in Eastern Oregon.