The Pros And Cons of
Condos • Storage.
Storage Some con-
dos have storage
Condominiums and townhouses lockers, but usually
East Portland offer an affordable option to single- there are no attics or
family homes in most areas. But basements to store
Home Buyers Guide consider these facts before you belongings.
East Portland buy.
Tax Reserve Accounts • Resale.
What To Save From Your Closing The ease off selling your unit • Reserve Funds And
Common Closing Costs For Buyers is more dependent on what Association Fees.
• The Real Estate Settlement Procedures Act else is for sale in your building, Although fees gener-
(RESPA) statement. This form, sometimes called Tips: Buying in a Tight Market since units are usually fairly ally help pay for
a HUD 1 statement, itemizes all the costs associ- similar. Single-family homes amenities and pro-
The Pros and Cons of Condos
ated with the closing. You'll need this for income usually are more individual. vide savings for fu-
tax purposes and when you sell the home What to Save From Your Closing ture repairs, you will
• Outdoor Space. Yards and have to pay the fees
• The Truth in Lending Statement summarizes the outdoor areas are usually agreed to by the
terms of your mortgage loan. smaller in condos, so if you condo board.
like to garden or entertain Whether or you’re
• The mortgage and the note ( two pieces of paper) outdoors, this may not be a interested in the
spell out the legal terms of your mortgage obliga- good fit, However, if you hate amenity or not.
tion and the agreed-upon repayment terms. yard work, this may be the
perfect option for you. • Freedom. Although
• The deed transfers ownership of the property to you have a vote, the
you. • Amenities.
Amenities Many condo proper- rules of the condo
ties have swimming pools, association can
• Affidavits swearing to various statements by fitness centers, and other fa- affect your ability to
either party. For example, the sellers will often cilities that would be very ex- use your property.
sign an affidavit stating that they have not in- Terry Yambra, Broker pensive in a single-family For example, some
curred any liens on the property. home. condos prohibit
9200 SE Sunnybrook Blvd home-based busi-
• Riders are amendments to the sales contract that • Maintenance. Many condos nesses. Others pro-
affect your rights. For example, if you buy a con- Clackamas, Oregon 97015 have onsite maintenance per- hibit pets. Read the
dominium, you may have a rider outline the condo sonnel to care for common covenants, restric-
association’s rules and restrictions. Office Phone: 503-336-6407 areas, do repairs in your unit, tions, and bylaws of
and let in workers when you’re the condo carefully
• Insurance policies provide a record and proof of Cell Phone: 503-753-5437
not home. before you make an
your coverage. offer.
Security Many condos have
Information above provided by NAR
www.realtor.org keyed entries and or even door
attendants. Plus, you’ll be
closer to other people in case
of an emergency.
Information above provided by NAR
Tax Reserve Accounts Common Closing Costs For Buyers Tips On Buying In A Tight Market
When a lender requires a tax reserve account, an initial
deposit is made though the escrow closing. Afterwards, The Lender must disclose a good faith estimate of all Increase your chances of getting your dream home instead
as monthly loan payments are made, each payment settlement costs. A check to cover your closing costs will of losing it to another buyer with these easy steps.
includes one-twelfth of the annual taxes. This money is probably have to be a cashier’s check. The title company
placed in a reserve account. When the property taxes or other entity conducting the closing will tell you the re- • Get prequalified for a mortgage. You’ll be able to make
are due, the reserve account will have accrued sufficient quired amount for: a firm commitment to buy and make your offer more
funds, with the initial deposit and the monthly pay- desirable to the seller
ments, to cover the tax bill. The following chart illus- • Downpayment
• Loan Origination Fees • Stay in close touch with your real estate sales associ-
trates how many months (or twelfths ) of taxes may be Points, Or Loan Discount Fees, You Pay To Receive A
required, check with your lender for their exact reserve ate to find out first about new listings that come on the
Lower Interest Rate
requirements. • Appraisal Fee
market. Be ready to go see a house as soon as it goes
• Credit Report on the market.
Closing date First Full Mo. Payment Reserve Account • Private Mortgage Insurance Premiums
• Insurance Escrow, If Being Paid As Part Of The Mortgage • Scout out new listings yourself. Look at internet sites,
January March 6 Months
February April 7 Months • Property Tax Escrow, If Being Paid As Part Of The Mort- newspaper ads, and drive through the neighborhood
March May 8 Months gage. Lenders Keep Funds For Taxes And Insurance In frequently. Maybe you’ll see a brand-new “for sale”
April June 9 Months Escrow Accounts As They Are Paid With The Mortgage,
May July 10 Months sign before anyone else.
Then Pay The Insurance Or Taxes For You
June August 11 Months
July September 12 Months
• Deed Recording Fees
• Be ready to make a decision. Spend lots of time in
August October 13 Months • Title Insurance Policy Premiums
September November 14 Months • Survey advance deciding what you must have so you won’t be
October December 3 Months unsure when you have the chance to make an offer.
November January 4 Months
• Inspection Fees-Building Inspection, Termites, Etc.
December February 5 months • Notary Fees
• Prorations For Your Share Of Cost, Such As Utility Bills • Bid competitively. You may not want to start out offer-
And Property Taxes ing the absolute highest price you can afford, but don’t
try to go too low to get a deal. In a tight market, you’ll
A Note About Prorations lose out.
Because such costs are usually paid on either a monthly • Keep contingencies to a minimum. Restrictions such
or yearly basis, you might have to pay a bill for services
as needing to sell you home before you move or want-
used by the sellers before they moved. Proration is a way
ing to delay the closing until a certain date can make
for the sellers to pay you back or for you to pay them for
your offer unappealing. In a tight market, you’ll proba-
bills they may have paid in advance. For example, the gas
bly be able to sell your house rapidly. If not, talk to your
company usually sends a bill each month for the gas used
lender about getting a bridge loan to cover both mort-
during the previous month. But assume you buy the home
gages for a short period.
on the 6th of the month. You would owe the gas company
for only the days from the 6th to the end for the month. • Don’t get caught in a buying frenzy. Just because
The seller would owe for the first five days. The bill would there’s competition doesn’t mean you should just buy
be prorated for the number of days in the month, and then anything. And even though you want to make your offer
each person would be responsible for the days of his or attractive, don’t neglect inspection that helps ensure
her ownership. your house is sound.
Reserve Months may very from lender to lender Information above provided by NAR Information above provided by NAR
Check with your lender for exact reserve requirements www.realtor.org www.realtor.org