Today, buying a home in Douglas County can feel more like a race than an exciting life milestone.
If you find a reasonably priced house in good condition, chances are you won’t be the only one making an offer—even if it just hit the market.
We sat down with our Mortgage Team to find out what tips they’ve picked up from working with local realtors and homebuyers over the past year that can help you be first across the finish line.
1) Cash is not your Friend
When it comes to verifying your income and assets there are two main things your lender wants to know: that the money you have was obtained legally and that it is not loaned to you. This protects the lender from legal implications down the road and helps the lender protect you.
“But I’ve deposited cash into my account that I would like to use!”
No worries, after your deposit has been in your account for 90 days it’s considered “seasoned” and is verified as an asset.
2) Prepare to Divulge all Personal Information
In an age where we are constantly urging our members to not give out private information, it can feel confusing when your lender is asking for every detail and document from your personal life. It’s important to know that a mortgage lender is licensed and safe to work with and working with them to provide your information will make the process go smoothly and ensure no flags are raised later down the road. Be prepared to provide details about your income, debt, employment, and financial accounts.
3) Beware these Common Red Flags
When asked what red flags typically pop up when going through paperwork, our team pointed out that many people have reoccurring overdrafts on their bank statements. This, as well as delinquencies on your credit report can raise flags and create an obstacle for your ability to qualify for a mortgage loan.
4) Prequalify with a Lender
Kim from our Mortgage Team says that with homes moving fast in Douglas County, you need to be ready to buy as soon as your perfect house hits the market. One way to get an edge is by getting prequalified with Cascade Community Credit Union (CCCU). By getting pre-qualified, you can:
- Know your budget: By going through this process with CCCU, you will find out exactly how much you can borrow, and which programs you are eligible for. Then, you can narrow down your list of potential homes to what fits your budget and program.
- Make your offer more attractive: Being prequalified signals to the sellers that you have already been approved by CCCU for the loan amount, and they won’t waste any time by picking you as a buyer. Mortgage pre-qualification puts a seller’s mind at ease.
- Save time: Pre-qualification allows you to finalize your mortgage more swiftly after you’ve found the home of your dreams. There’s no need to fill out paperwork and wait for lenders to process it when you’re eager to get settled in your new house. Take care of everything beforehand so you have one less task to worry about as you buy a home.
- Solve any problems: As you obtain your pre-qualification, you may come across errors in your credit report or other documentation. Discovering these issues before purchasing a home will save you time and hassle.
Sometimes during this process, you may find that you’re not quite ready for this major step. When this happens, we won’t send you out the door. Our team will walk you through a plan to help you reach your goal so you can come back in a year ready to purchase your dream house.
5) Closing may be Slow
Many new home buyers would like to believe that once their offer has been accepted, their next step is moving into their new home. Unfortunately, the closing process can potentially take up to two months during the home appraisal process. In Douglas County, appraisals are taking 4-6 weeks to complete, creating a significant lag between making an offer, bartering between the seller and buyer, and closing.
A lot can happen during this time, be sure to keep in contact with your lender as they will do their best to help you through any tricky spots that may arise.
6) Shopping in a Market with limited Properties
Act quickly. Not rashly. Do your research before you go.
Look at property taxes in advance so you’re aware of what the cost will be. There is a huge tax disparity between property taxes in the Hucrest area of Roseburg vs. the Green area vs Winston. In some cases, the property tax can be as much as the principal on the loan.
Considering New Construction? Vet your contractor or research the builder.
Prequalify- again, this signals to the seller that you are ready to buy. This can make all the difference in your ability to grab your home.
If you feel like you’re ready to start the home buying journey, start the conversation by sending us a message at [email protected].
Insured by NCUA Membership Qualifications Apply.