It Is One Thing to Listen to an Instructor Teaching You How to Purchase Your First House

Understanding Your Mortgage

Lessons Learned… Former Students Share Their Experiences with You

It is one thing to listen to an instructor teaching you how to purchase your first house, but who better to learn from than actual students who have already successfully navigated through the highs and lows of purchasing their first home? I recently asked former Home Buyer 101 graduates to share their tips with future Home Buyer 101 students…

What is one thing you wish you would have done differently when you look back at your first home purchase experience?

John said, “I would have been more diligent in finding a really good Realtor to help me. The Realtor I worked with was recommended by a friend, but she turned out to be not the best advocate for me. I felt that she was too eager in trying to convince me to close a home or condo even though I had hesitation and issues with the construction and location. I ended up finding the condo I live in by myself and negotiating the price directly with the seller. I kept the Realtor along because I am the type of person that relationships and loyalty are important. She ended up quitting the industry half way through the construction of my condo. If I had to everything over again, I would talk to more than just one Realtor just to get a better feel of their approach, personality, and success.”

Kris said, “Be educated on the process before you start it, i.e.; expenses leading up to the sale (inspection), closing costs, 1st-time-buyer opportunities, ESCROW, Title Company, mortgage selling AND loads of junk mail that can be deceiving and confusing.”

Sandra said, “Look closer at how my new development was developed and whether the conditions of approval to build it had been adhered to. An example is large mature trees that were intended to be saved should have been protected much better when they graded for initial site development and built the homes. The rules were not followed very closely by the developer, the City didn’t enforce very well, and the owners (for trees on private lots and trees on HOA property) got stuck with trees that later died and were very expensive to have removed.”

What tip/advice would you give to someone who is looking at buying their first home?

Kahil said, “Don’t settle and know when to walk away! This is your home you will be living in for a long time. Make sure that you feel good about your purchase and the price you just paid. When I was purchasing a home, it was the tail end of the housing boom in Portland. Inventory was still heavy and there were many homes to select from. But negotiating prices was not ideal at that time. Now, the buyer is in a position to negotiate a lower and reasonable price for a home.

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Home Buyer 101 Understanding Your Mortgage

Continued…Do your homework and really know the market price, neighborhood, age of the house, etc. Work with your Realtor to figure out a fair market price for a home in the neighborhood. If the seller does not budge, then walk away. Don’t overpay for a home. I felt that I did, but again it was the situation and reality of the market at that time. Oh, and get one loan with a fixed rate. Finding the right Mortgage Broker or lender that you can trust and feel comfortable with is also important. Being new to buying a home, I was a bit apprehensive and cautious in signing forms or working with lenders. I didn’t want to be bamboozled or taken advantage of. But fortunately, I was recommended a good broker (Dustin) who gained my trust from the beginning I met him. That helped set a foundation of trust, commitment, and taking a big step forward towards purchasing a home.”

Hugh said, “Home buying can be a complicated process so be sure you have a mortgage broker and real estate agent that have your best interests at heart. Our broker was very positive, truly interested in us and in our satisfaction and made the process flow as smoothly and as quickly as possible. We had a deadline to meet due to unforeseen circumstances and he was able to meet it for us. Our real-estate agent would not "allow" us to buy a home that she felt wasn't a good buy or that might cause us trouble. She was very critical of every flaw and even saved us from some heavy buyer's remorse. These two factors can make the difference between satisfaction and disaster.”

Angie said, “You must work with the right professionals. We were introduced to a real estate agent through a friend of ours and immediately had a funny feeling about her. We were a little naive about the process of buying a home and didn’t really even consider the idea of interviewing several agents. Well it was our own fault and we eventually got connected with a lender through our agent… what a nightmare!! The mortgage guy took three days to return our phone calls and it always seemed like we were inconveniencing him. After working for a month with these two professionals???, we decided that homeownership was not for us. About 6 months later we were looking through the PCC website and noticed your class and decided to educate ourselves about the whole first buyer process. Thank goodness we did! The class opened our eyes to many things that were never really explained to us the first time around. There is a big difference in the quality of real estate/mortgage professionals out there… work with the right people.”

Kirstin said, “Neighbors: we have some great neighbors, but we also have some lame neighbors. We you rent, it's not that big of a deal. People move, there is turnover, etc. Plus, you yourself are more free to move too. But we may be living next door to these crummy people for years, even decades. And there is no landlord to complain to. I don't know how we could have prevented this, and I don't know that I would have changed my mind about the house had I known ahead of time, but looking back I would have at least knocked on doors to say hello BEFORE we bought the house. Then we would have had some idea. But on the flip side, we do feel very fortunate to have our great neighbors!“

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Home Buyer 101 Understanding Your Mortgage

Sandra said, “Be practical/responsible as to what is really reasonable for you to be able to comfortably afford. Don’t buy directly from a builder unless you are really experienced in negotiations and know a lot about property and construction, as a Realtor can help you negotiate a much better deal or get extras thrown in.”

Matt said, “Owning a home is definitely a BIG change from renting. Plus, just knowing how to fix things yourself and/or knowing the right people to call. Here's a little story for your students...within about one year of moving in, I was taking a shower that went cold. I checked all the faucets. Cold. I knew it was the water heater, but what did I know about water heaters?! I called the 800 # on the water heater itself, and we figured out that the pilot light had gone out, they walked me through re-lighting it and all was well. But when I first made the discovery, all I could think was WHY CAN'T I JUST CALL MY LANDLORD?!”

What is your favorite part about being a homeowner today?

Kirstin said, “We love being homeowners! I love that we can paint the walls whatever colors we want, we have our own yard, we adopted 2 wonderful cats, and we are making a monthly payment (unlike rent) that makes this home all our own.”

Scott said, “The paradoxical feelings of privacy and separateness from those around you and belonging to a neighborhood or community at the same time.”

Jeanie said, “My husband would say that his favorite part is having room for his big screen tv, but I think we would both agree that waking up each morning knowing that this is our home and it just feels right.”

John said, “There is a sense of Freedom and financial flexibility when owning a home. It has been one of the best investments I’ve made. I really didn’t think I can purchase a home on my own, but I did and it is possible. It wasn’t hard as I thought it would be. I feel that anyone can do it, if they optimize the resources that are available to a first time home owner.”

Home Buyer 101