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					                                                                                              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.
                                                                                                  Security Many condos have
              Information above provided by NAR
                                                                         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                                                  

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