Archive for the ‘home buyers’ Category

Oregon Native American Loans


Oregon Native American Loans

Owning your own home is the dream of many and for you and your family Oregon Native American loans is a way of making that dream come true. Even if you already own your home, you might be looking for a larger one to accommodate a growing family or maybe you need a loan to pay for improvements to the house you’re living in now. Either way, Oregon Native American loans are the solution for you.

Why Oregon Native American Loans?

The place to start your search for Oregon Native American loans begins with Section 184, which is a HUD government program designed to benefit registered members of federally recognized entities. Benefits include no appraisal if you currently have a Native American loan, low monthly payments since there is no requirement for mortgage insurance and no minimum credit score. For loans under $50k, a down payment of only 1.25% is needed and for loans over that, only 2.25% is required. This means that with Oregon Native American loans, you can get the home you’ve always dreamed of owning.



Doug Hall, Broker
(541) 979-0571

Doug Hall, is a licensed Real Estate Broker in the State of Oregon with RE/MAX Integrity

Doug Hall is a proud sponsor of
The Springhill North Albany Car show to benefit CASA of Linn County


Mortgage Glossary – Definitions & Real Estate Terms


August 8, 2013

Appraisal: An opinion of value as of a given date of a property prepared by an expert. The experts are usually licensed in the state. For residential loans, the report is invariably prepared on FNMA form

.Appreciation: The increase in a property’s value over time.

ARM (Adjustable rate mortgage):A mortgage in which rate changes according to a formula specified in the loan document.

Automated Underwriting: A computerized system that preliminarily determines a borrower’s loan eligibility based on a predetermined set of financial criteria.

Bottom-line Price: The highest price you would be willing to pay for a property. Unless you are making a “take it or leave it” offer,” you would initially offer a price lower than your bottom-line price and negotiate your way upward. Obviously, you never let a seller know your bottom-line price.

Buyer’s Agent (also Selling Agent):This real estate agent who works on behalf of a buyer by researching homes and neighborhoods and drawing up offers and contracts. Ask your agent to draw up a Buyer’s Broker Representation Agreement.

Buyer’s Broker Representation Agreement: A written agreement that stipulates a buyer’s agent will work only on behalf of the buyer.

Capital: Wealth or assets used to stimulate production of additional assets.

Cash Flow: In a rental property owned by an investor, this refers to the amount of money a property generates after expenses are accounted for.

Casualty Insurance (also Homeowners insurance, Fire insurance or Hazard insurance):A policy which protects the homeowner against damages to property caused by fire and other common hazards. Liability insurance, which protects homeowners in case someone is injured on their property, is also included. Most policies are “full replacement cost,” which guarantees sufficient funds to rebuild the home. Full replacement cost is usually determined based on a home’s last appraised value less the cost of the land. In order to protect lenders’ interests, they are typically named on casualty insurance plans as additional insured parties

Certified Public Accountant (CPA):A CPA is an accountant who has passed a state examination and other requirements necessary to be a practicing professional. There are excellent tax preparers who are not CPAs.

Closing Costs: The miscellaneous costs associated with closing. These typically include a Loan Origination Fee and Discount Points, Appraisal Fee, other Lender Fees, Escrow and Title Fees, and the first year’s Insurance Premium.

Comparables: Properties that are similarly sized and have similar features to a subject property. By reviewing comparable properties, buyers and their agents can get an idea of a property’s market value.

Comparative Market Analyses: Conducted by a real estate agent, this assessment of a property’s value is used to determine a reasonable offering price.

Condominium: In general, a higher density type of development in which a resident owns one of many units along with a share of the ground and other common amenities, like a swimming pool. The units are generally attached (unlike traditional single-family detached homes).

Condo Association: A condo association is a governing body that consists of individual condominium unit owners and that makes decisions regarding the maintenance of a condominium building and its grounds.

Counter-offer: In a real estate negotiation, a counter-offer is typically a response by the seller to the buyer’s initial offer. It is usually lower than the initial listing price and higher than the buyer’s offer.

Credit: Money that is available for the sake of a loan.

Credit Bureaus: Private companies that collect and maintain individuals’ credit histories, which they provide to creditors for a fee. The three major credit bureaus are Equifax, Experian and TransUnion.

Credit Markets: Just as there is a stock market, there is a market where fixed income securities are traded. Among these are mortgage backed securities, pools of mortgages that are sold to investors such as pension plans and hedge funds.

Credit Report: Produced by credit reporting agencies, this reveals the borrower’s history and current status of obligations.

Deed: In many states, the word mortgage is used but the security instrument whereby the property is given as security for the loan is actually a Deed of Trust. There are three parties to the instrument: the Trustor, the borrower, the Trustee, and the Beneficiary, the lender. The borrower transfers the legal title for the property to the trustee who holds the property in trust as security for the payment of the debt to the lender or beneficiary. In the event of default, the beneficiary notifies the Trustee of the default whereupon the trustee proceeds to sell the property at a public sale. This is really a “paper function” as the Trustee will actually play no role. In most states a lender seeks a non-judicial foreclosure where the proceeds of the sale less the costs are the lender’s revenue to apply against the loan. If the proceeds from the sale are not sufficient to pay off the loan, the lender may not pursue other legal action against to collect the deficiency. In some states, but not all, a lender must seek a judicial foreclosure to recover the full amount owed.

Dual Agency: When a buyer’s agent concurrently represents the interests of a seller. Dual agency is generally not recommended.

Earnest Money: The deposit money given by the buyer to his agent or settlement agent upon the signing of the Offer to Purchase (alternately known in some regions as the Deposit Receipt). This shows that that the buyer is serious about buying the house. If the sale goes through, the earnest money is applied against the down payment. If a contract to purchase is not agreed upon, it is returned to the buyer. If a contract is agreed upon but the sale is not consummated, disposition of the earnest money, either forfeited to the seller or returned to the buyer is dependent upon what is agreed to in the Purchase Contract.

Escrow: In California and some other states, the settlement agent who handles the closing of a purchase transaction is an Escrow Company. In other states, settlement agents may be the escrow division of a title company or an attorney.

Escrow accounts : (also Impound Accounts):Lender-established accounts through which a borrower makes payments and a lender takes deductions to cover the costs of the following: mortgage insurance premiums, property tax payments, and/or casualty insurance premiums. Escrow accounts are customary in the East, especially where the LTV of an original loan exceeds 80%. In these situations, borrow equity is not high and if foreclosure became necessary, the lender would not want to recoup the cost of back taxes payment.

Escrow Officer: After an offer is made, an escrow officer (or a representative of an attorney’s office) facilitates the transaction from the time the contract is signed through the close of escrow. These include inspections, earnest money agreements, disclosures, lender issues, and title and escrow issues. This is different from an escrow coordinator attached to a real estate broker’s office—a person whose services you should not pay for.

Federal Reserve: (also “The Fed”):The central bank of the United States government. The Federal Reserve is responsible for setting short term interest rates that serve as models for many types of loans. Mortgage rates, however, are influenced by the market rates on long-term securities like the 10-year Treasury Bond, which is only loosely affected by the Fed.

FICO: Created by the Fair Isaac and Co., this mathematical scoring system is used to assess the relative risk of an individual borrower.

Fixed-Rate Loan: A loan in which the interest rate doesn’t fluctuate but rather remains consistent for the life of the loan.

Foreclosure: The legal process by which a lender enforces payment of a debt secured by a mortgage, or deed of trust. During a foreclosure, the lender takes possession of the home, evicts the mortgagor, and sells the mortgaged property. If the sales price is not enough to pay off the loan, the lender may have other remedy dependent upon state laws, which vary from state to state.

For Sale By Owner Properties: Properties that are sold directly by owners rather than through a brokerage firm. You can use a broker to help you but you, not the seller, are responsible for the agent’s commission.

Good Faith Estimate: Provided by a mortgage lender or broker, this is a list of estimated fees and costs associated with a home loan. Your lender must, by law, give you this and other disclosures within 3 days of your application.

Home Protection Warranty Package: A service contract paid by the seller that covers breakdowns in heating, plumbing, air conditioning or electrical systems, usually within other first year of ownership.

Interest: The price paid for borrowing money.

Interest-Only Loan: A loan that requires a borrower to pay back interest only for a set number of years. After the interest-only period has expired, the remaining principal is typically amortized over the remainder of the life of the loan.

Interest Rate: The rate, which fluctuates according to various economic forces, that is the measure of the price at which money can be borrowed.

Interest Rate Lock: An assurance from a lender that an interest rate will not rise between the time a borrower locks in the terms of the loan and the time the loan closes.

Lien: A claim by one person or entity on the property of another. Commonly, this is security for money owed, created by the lender when you buy a property. Liens also include obligations not met or satisfied, judgments, unpaid taxes, materials, or labor.

Liquidity: The percentage of assets that can be quickly turned into cash. Liquidity is also a measure of the funds available for down payment, closing costs, and reserves.

Listing Agent: The agent who represents the interests of the seller.

Lock Period: Either 15, 30, 45, or 60 days, lock periods are set amounts of time during which the interest rates buyers have been promised cannot be made any higher.

Lot Number: The number corresponding to a parcel of land meant to be owned by a particular individual.

LTV (Loan-to Value): A ratio that expresses the amount of a first mortgage lien as a percentage of a property’s total appraised value. For example, if a borrower wants $100,000 to buy a home worth $120,000, the LTV ratio is $100,000/$120,000 or 83%.Mortgage:A lien or claim against real property given by the buyer to the lender as security for money borrowed.

Mortgage Loan Officer: A representative of a lending institution who acts as an intermediary between the institution and the borrower.

Multiple Listing Service: A group of private databases that provides real estate brokers with a comprehensive look at available housing in a particular market or across markets. The information, which used to be guarded jealously, is now available at numerous websites.

National Association of Realtors: A trade organization consisting of a membership of more than 700,000 Realtors.

Negative Amortization: A method of loan repayment in which the borrower does not pay back the full amount of interest owed each month. The portion of interest that remains unpaid is added to the total amount owed to the lender.

Piggyback Transaction: Typically utilized by borrowers who wish to avoid paying private mortgage insurance (generally a requirement when a person makes a down payment of less than 20 percent), piggyback transactions or 80-10-10 mortgages as they are alternately called, are transactions by which two separate mortgages are originated at once. The first position lien has an 80 percent loan-to-value ratio and the second position lien has a 10 percent loan-to-value ratio. The remaining 10 percent is accounted for in the form of a down payment.

Points: A point is one percent of the amount of the loan. On a $50,000, one point is $500 while on a $200,000 loan, one point is $2,000. When a borrower pays points, this first includes the Loan Origination Fee. Additional points are called “discount points” and are an off-set against interest rate. Lenders will, these days, almost always offer a number of “rate versus fee” combinations allowing the borrower to choose one which is most suitable for his circumstance.

Pre-approval: A commitment from a lender stipulating how much money a person may borrow and under what terms and conditions.

Preliminary Title Report: Once escrow is opened, a preliminary title report is issued. This report provides buyers with information on a property’s title and whether there are any easements, liens and encumbrances on a particular property.

Pre-qualification: An informal, but not binding assessment of how much money a person could potentially borrow from a lender. Pre-qualification is an opinion rather than a promise, and is thus different from pre-approval.

Principal: The balance of the loan outstanding. This is the amount upon which the interest payment is computed.

Private Mortgage Insurance: A form of insurance that lenders generally require when borrowers make down payments that are less than 20 percent; in other words, when their loan-to-value (LTV) percentage is great than 80 percent.

Property Insurance (Fire Insurance):Insurance policy intended to cover risks including fire, theft and some weather damage. Also called Fire Insurance or Casualty Insurance.

This refers to an adjustment made on a payment to account for unused service so that buyer and seller each pay their respective share of costs in proportion to the time in which they own the property.

An inverse relationship exists between a mortgage interest rate and the upfront fees paid. When borrowers opt to pay more upfront, the lower the interest rate becomes. It is much better to buy down the rate if you are going to be in a home for more than five years.

Real Estate Agent: A state-licensed professional who negotiates the sale of real estate, typically on behalf of its owner. A buyer’s agent represents the buyer in a real estate transaction.

Real-Estate Owned (REO):A term referring to properties owned by banks as the result of a foreclosure.
Realtor: A real estate broker or agent who is affiliated with the National Association of Realtors.

Reserve Account:
Reserves set aside by a condo association to cover anticipated maintenance and other expenses.

Reserve Analysis: Typically initiated by the board of a condo association, a reserve analysis studies every single item in the common area—from the roof to the paving in the parking lot, to make sure that adequate reserve funds are being established for their eventual replacement.

Reserves: This refers to the amount of liquid assets that a borrower has after paying the down payment and closing costs.

Return on Investment: aka ROI. The amount of profit a property generates divided by its value. A $100,000 property that generates $8,000 per year would produce an 8% ROI.

Risk: In terms of credit, risk refers to the likelihood of a borrower being able to make payments in a timely fashion and, ultimately, to pay off a loan. Naturally, lenders prefer low-risk borrowers to those who pose a high risk. Lenders determine risk by reviewing a person’s credit score and credit history.

Risk-based Pricing: The higher the perceived risk, the higher the interest rate the borrower will pay.

Single-Family Residence:
Unlike a condominium, in which certain areas area shared between individual homeowners, a SFR is a private unit intended for occupancy by a single family.

: Refers to loans offered to high-risk individuals and thus carry the highest interest rates.

Termite Report: A report issued by a licensed state inspector that reports termite infestation and dry rot and any damage that resulted. The report will list corrective action and the cost of repairing damage to a home.

Tract Number:
Refers to a subdivision of land as it is identified by the U.S. census. Tracts can range anywhere from 2,500 to 8,000 inhabitants.

Uniform Standards of Appraisal Practice:
Designated by the Appraisal Foundation, these guidelines are intended to facilitate equitable appraisal practices.

Yield Curve: A yield curve is the representation of the relationship between an interest rate and the time to maturity of a debt. The shape at any given time will determine the difference between long-term loans like a 30-year fixed rate loan and, say, a 5/1 ARM.


Team Pendley
with RE/MAX Integrity
We Go The Extra Mile, It’s Less Crowded!

Pat Pendley, Principal Broker
(541) 990-2530

Christie Pendley, Broker
Certified Distressed Property Expert
(541) 619-3640

Doug Hall, Broker
(541) 979-0571

**Pat Pendley, Christie Pendley ,and Doug Hall, are licensed Real Estate Brokers in the State of Oregon with RE/MAX Integrity

How to Assess the Real Cost of a Fixer-Upper House houselogic

Published: August 24, 2010 By: G. M. Filisko

When you buy a fixer-upper house, you can save a ton of money, or get yourself in a financial fix.

Trying to decide whether to buy a fixer-upper house? Follow these seven steps, and you’ll know how much you can afford, how much to offer, and whether a fixer-upper house is right for you.

1. Decide what you can do yourself

TV remodeling shows make home improvement work look like a snap. In the real world, attempting a difficult remodeling job that you don’t know how to do will take longer than you think and can lead to less-than-professional results that won’t increase the value of your fixer-upper house.
Do you really have the skills to do it? Some tasks, like stripping wallpaper and painting, are relatively easy. Others, like electrical work, can be dangerous when done by amateurs.
Do you really have the time and desire to do it? Can you take time off work to renovate your fixer-upper house? If not, will you be stressed out by living in a work zone for months while you complete projects on the weekends?

2. Price the cost of repairs and remodeling before you make an offer
Get your contractor into the house to do a walk-through, so he can give you a written cost estimate on the tasks he’s going to do.
If you’re doing the work yourself, price the supplies.
Either way, tack on 10% to 20% to cover unforeseen problems that often arise with a fixer-upper house.

3. Check permit costs
Ask local officials if the work you’re going to do requires a permit and how much that permit costs. Doing work without a permit may save money, but it’ll cause problems when you resell your home.
Decide if you want to get the permits yourself or have the contractor arrange for them. Getting permits can be time-consuming and frustrating. Inspectors may force you to do additional work, or change the way you want to do a project, before they give you the permit.
Factor the time and aggravation of permits into your plans.

4. Doublecheck pricing on structural work

If your fixer-upper home needs major structural work, hire a structural engineer for $500 to $700 to inspect the home before you put in an offer so you can be confident you’ve uncovered and conservatively budgeted for the full extent of the problems.

Get written estimates for repairs before you commit to buying a home with structural issues.

Don’t purchase a home that needs major structural work unless:
You’re getting it at a steep discount
You’re sure you’ve uncovered the extent of the problem
You know the problem can be fixed
You have a binding written estimate for the repairs

5. Check the cost of financing

Be sure you have enough money for a downpayment, closing costs, and repairs without draining your savings.

If you’re planning to fund the repairs with a home equity or home improvement loan:
Get yourself pre-approved for both loans before you make an offer.
Make the deal contingent on getting both the purchase money loan and the renovation money loan, so you’re not forced to close the sale when you have no loan to fix the house.
Consider the Federal Housing Administration’s Section 203(k) program, which is designed to help home owners who are purchasing or refinancing a home that needs rehabilitation. The program wraps the purchase/refinance and rehabilitation costs into a single mortgage. To qualify for the loan, the total value of the property must fall within the FHA mortgage limit for your area, as with other FHA loans. A streamlined 203(k) program provides an additional amount for rehabilitation, up to $35,000, on top of an existing mortgage. It’s a simpler process than obtaining the standard 203(k).

6. Calculate your fair purchase offer

Take the fair market value of the property (what it would be worth if it were in good condition and remodeled to current tastes) and subtract the upgrade and repair costs.

For example: Your target fixer-upper house has a 1960s kitchen, metallic wallpaper, shag carpet, and high levels of radon in the basement.

Your comparison house, in the same subdivision, sold last month for $200,000. That house had a newer kitchen, no wallpaper, was recently recarpeted, and has a radon mitigation system in its basement.

The cost to remodel the kitchen, remove the wallpaper, carpet the house, and put in a radon mitigation system is $40,000. Your bid for the house should be $160,000.

Ask your real estate agent if it’s a good idea to share your cost estimates with the sellers, to prove your offer is fair.

7. Include inspection contingencies in your offer

Don’t rely on your friends or your contractor to eyeball your fixer-upper house. Hire pros to do common inspections like:
Home inspection. This is key in a fixer-upper assessment. The home inspector will uncover hidden issues in need of replacement or repair. You may know you want to replace those 1970s kitchen cabinets, but the home inspector has a meter that will detect the water leak behind them.
Radon, mold, lead-based paint
Septic and well

Most home inspection contingencies let you go back to the sellers and ask them to do the repairs, or give you cash at closing to pay for the repairs. The seller can also opt to simply back out of the deal, as can you, if the inspection turns up something you don’t want to deal with.

If that happens, this isn’t the right fixer-upper house for you. Go back to the top of this list and start again.

More from HouseLogic

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Team Pendley
with RE/MAX Integrity
We Go The Extra Mile, It’s Less Crowded!

Pat Pendley, Principal Broker
(541) 990-2530

Christie Pendley, Broker
Certified Distressed Property Expert
(541) 619-3640

Doug Hall, Broker
(541) 979-0571

**Pat Pendley, Christie Pendley ,and Doug Hall, are licensed Real Estate Brokers in the State of Oregon with RE/MAX Integrity

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Team Pendley is a proud sponsor of the Springhill North Albany Car Show to benefit CASA of Linn County

Inside Lending Newsletter – High Expectations for Housing Market

Orson Klender, Licensed Associate Real Estate Broker

QUOTE OF THE WEEK… “High expectations are the key to everything.” –Sam Walton, founder of Walmart

INFO THAT HITS US WHERE WE LIVE… We all have high expectations for the housing market and it seems they’re being fulfilled. Real estate analytics firm CoreLogic reported home prices rose in 2013 at the fastest annual pace since 2005. In December, their Home Price Index was up 11% on an annual basis, the 22nd month in a row of year-over-year home price increases. Their CEO added: “The healthy and broad-based gains in home prices in 2013 help set the stage for the continued recovery in the housing sector in 2014. After six years of fits and starts, we can now see a clearer path to a durable recovery in single-family residential housing across most of the U.S.”

Also looking at 2014, a national real estate listing site estimates that home values will rise 4.8% overall through December…

View original post 150 more words

RE/MAX Housing Blog Pre-Approval 101: What First-Timers Need to Know


Sun, August 11, 2013

If you’re thinking about buying your first home (it’s certainly a good time for it!), getting pre-approved for a mortgage should be the first item on your to-do list. So, what does that mean and why do you need it?

Pre-approval means that a mortgage lender has gone over your financials and can state, in writing, how much you’re qualified to borrow. This is crucial information because it helps you define your price range, the amount of the down payment you’ll need in that price range, and even the neighborhoods that are within your financial reach. There’s nothing more heartbreaking for hopeful buyers than realizing the home they’ve set their hearts on is priced too high for their borrowing power.

But these aren’t the only advantages of pre-approval. Having that lender “seal of approval” makes you a more solid candidate in the eyes of sellers. And that can make the difference between moving into and saying goodbye to a home you love.

More buyers today are competing with each other for properties. In many markets, there is a limited supply of homes for sale. The July RE/MAX National Housing Report indicated that across the U.S. there’s about a three-month supply. That means it would take just three months to sell every property that’s currently on the market in the U.S. That’s fairly shocking, considering a “normal” inventory is about six months’ worth. In areas with low inventory, pre-approved buyers already have a leg up on the competition, because they’re that much closer to being able to complete a sale.

In some cases you have to be pre-approved to even be able to put in a bid. That’s typically the case if, for example, you’re considering buying short sales and foreclosures.

So take that important first step toward homeownership by getting pre-approved. Contact a local RE/MAX agent who can help you navigate the whole process.

Pre-approval prep
To get ready for pre-approval, know what’s in your credit reports, pay off as many outstanding debts as possible, and get your financial papers in order. You’ll be asked to provide several types of documents, including:

• Photo ID (usually a driver’s license or passport)
• Social security number
• Recent pay stubs – usually for the previous two months
• W-2 tax forms for the past two years
• Two years of federal tax returns
• Two months of recent bank statements

The lender may also ask for any other investment and savings statements, as well as contact information for your landlord (if you’re renting).

After your paperwork is complete, the lender can often respond in as quickly as 48 hours.

Information originally posted on
RE/MAX Housing blog

Team Pendley
with RE/MAX Integrity
We Go The Extra Mile, It’s Less Crowded!

Pat Pendley, Principal Broker
(541) 990-2530

Christie Pendley, Broker
Certified Distressed Property Expert
(541) 619-3640

Doug Hall, Broker
(541) 979-0571

**Pat Pendley, Christie Pendley ,and Doug Hall, are licensed Real Estate Brokers in the State of Oregon with RE/MAX Integrity

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