Owning a Home in Portland Is Easier Than You Think!

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If you can't afford a large down payment, should you wait to buy? We get this question all the time, so we thought we might address it here today, and explain how private mortgage insurance might help you buy sooner than you thought you could.

It seems we run into people every day who think they need to wait to move in order to save a large down payment. They think that without a 20% down payment, they won't be able to qualify for a mortgage in today's market.That is a mistaken belief, as there are many available programs out there that require anywhere from 3.5-10%! There are even some programs that require no money down, but those are a bit harder to qualify for.

Putting 5% down is a whole lot more affordable for many people than putting 20% down, at least in the short term. For instance, if you put 5% down ($10,000) on a $200,000 home, as opposed to 20% ($40,000), your monthly payment would only be $232.75 more expensive. Many people think that saving for a 20% down payment will save them money, but is that really true?

Core Logic recently published a report that tells us to expect a residential appreciation rate of about 4.3% and I think here in Portland that number is going to be even higher (it's currently in the 7% range!). If you were to purchase private mortgage insurance, the difference in payments over the next 12 months would be $2,793, whereas the expected appreciation over the next 12 months is $8,600. When you take those numbers together, it shows that you are missing out on $5,807 a month by not owning.

If you would like to sit down and talk about your options, please don't hesitate to reach out to us. We would love to help in any way we can!

How to Stand Out as a Home Buyer in Portland with One Simple Document

Selling your Portland home? Check out our free home value report
Buying a Portland home? Search all homes for sale

Today we'll be discussing an important distinction among home buyers in Portland. I'm talking about a pre-approval versus a pre-qualification. It's an important difference that you may not know about, but home sellers will surely be scrutinizing you about it.

A pre-qualification and a pre-approval are two entirely different documents. A pre-qualification is a much more basic certification, and it can be obtained in a few hours. You only need a few pieces of information, none of which is really double-checked, and you can then get your pre-qualification letter once a lender has looked over your numbers. This is a very informal meeting between you and the lender, and it doesn't mean a whole lot in the eyes of the seller.

A pre-approval letter is much more desirable, and I highly recommend it to all of my home buyers. This is more time-consuming, but it will designate you as a serious buyer if you can acquire it. You will submit tax returns, pay stubs, insurance information, and more. Once the lender has an opportunity to review these items, you will then be issued an approval letter.

Both buyers and sellers like to see letters of pre-approval, and this is especially true when the real estate market is as hot as it is in Portland.

If you would like to be put in contact with a great local lender, please don't hesitate to contact me!