Skipping Pre-Approval
Touring homes without a pre-approval letter is like test-driving cars you cannot afford. You fall in love with something outside your budget, waste time, and lose credibility with sellers. Get pre-approved before you look at a single property.
Choosing the Wrong Loan
Many first-time buyers default to FHA when they might qualify for Oregon Bond with down payment assistance, or a USDA loan with zero down. The right loan can save you tens of thousands of dollars over the life of the mortgage. Compare at least three options.
Waiving Inspections to Compete
In a competitive market, some buyers waive inspections to make their offer more attractive. This is risky, especially on older homes and rural properties. A $500 inspection can save you from a $30,000 septic replacement or a foundation problem.
Underestimating Closing Costs
The down payment is not the only cash you need at closing. Budget an additional 2% to 4% of the purchase price for closing costs, plus reserves for moving, repairs, and the first few months of ownership. Running out of cash at closing is a preventable disaster.
Making Big Purchases Before Closing
Do not buy furniture, a car, or open new credit cards between pre-approval and closing. Your lender will pull your credit again before funding, and new debt can change your debt-to-income ratio enough to kill the loan.
Ignoring the Neighborhood
Visit the property at different times of day. Drive the commute during rush hour. Check the school ratings. Talk to the neighbors. The house itself might be perfect, but the location is permanent.
Not Using a Buyer’s Agent
In Oregon, the seller typically pays both the listing and buyer’s agent commissions. Using an experienced buyer’s agent costs you nothing and gives you someone advocating exclusively for your interests throughout the transaction.
