Buying Your First Home?

Your Friendly Guide to Buying a Home in Oregon

Buying your first home is exciting, nerve-wracking, and full of unknowns, especially in a market like Oregon's Yamhill Valley or the Portland metro area. At Summers Homes NW, we help first-time buyers turn confusion into confidence. This guide walks you through the practical steps, common pitfalls, and professional tips that will move you from curious house-hunter to happy homeowner.

Whether you’re dreaming of a cozy bungalow in McMinnville or a low-maintenance townhome closer to the city, the core steps are the same: get your finances ready, understand the costs, define what matters most, and work with a trusted team that puts your goals first.

Start with the finances: check your credit and budget

Before you fall in love with a listing, get a clear view of your financial baseline.

Check your credit score: Pull a free credit report and check for errors. Lenders use your score to set your interest rate; small improvements (like paying down a high-balance card) can make a real difference.
Create a realistic budget: List monthly income, recurring expenses, and current debts. Use a mortgage calculator to estimate principal, interest, taxes, insurance (PITI), and HOA fees if applicable.
Save for a down payment and emergency fund: Decide how much you can put down — while 20% avoids private mortgage insurance (PMI), programs exist for low down payments. Still aim for at least 3–5% if necessary, plus 2–3 months of living expenses in reserve.

Pro tip: Small credit improvements and reducing high-interest debt before applying can lower your rate and monthly payment.

2. Get pre-approved — not just pre-qualified

A pre-approval letter from a lender is a game-changer when making offers.

Pre-qualified vs pre-approved: Pre-qualification is an informal estimate. Pre-approval involves verifying income, assets, and credit — and produces a stronger, lender-backed letter.
Shop lenders: Compare interest rates, fees (origination, application, underwriting), and program options (FHA, conventional, USDA, VA if eligible). Ask for a Loan Estimate to compare apples-to-apples.
Understand mortgage types: Fixed-rate vs adjustable-rate mortgages (ARMs), loan terms (15 vs 30 years), and government-backed loans — each has different pros and cons.

Why it matters: Sellers and listing agents take pre-approved buyers more seriously — it can make your offer stand out.

3. Know all the upfront and ongoing costs

Many first-time buyers focus on the down payment but forget other costs. Be prepared for:

Earnest money deposit: Shows seriousness when you submit an offer.
Closing costs: Typically 2–5% of the purchase price (lender fees, title insurance, escrow, recording fees). Ask the lender for a full breakdown.
Inspection and appraisal fees: Protect your investment by budgeting for a home inspection and appraisal (often required by lenders).
Moving, repairs, and immediate maintenance: Budget for paint, new locks, minor repairs, and appliances.
Ongoing costs: Property taxes, homeowners insurance, utilities, HOA dues, and maintenance.

Checklist item: When estimating affordability, build in a 10–15% buffer for repairs and unexpected expenses in the first year.

4. Define your must-haves vs nice-to-haves

Create a clear list of priorities to focus your search and avoid compromise regret.

Must-haves: Non-negotiables like school district, number of bedrooms, accessibility, or lot size.
Nice-to-haves: Elements that would be great but aren’t dealbreakers (granite counters, two-car garage, finished basement).
Future-proofing: Think about 3–5 year plans — will you expand your family, work from home, or need resale flexibility?

Pro tip: Rank features and be ready to adjust based on market availability. Your agent can help you weigh tradeoffs.

5. Work with a local agent who knows the market

A great agent is your advocate, negotiator, and project manager.

Why local expertise matters: Neighborhoods can vary block-by-block — a local agent knows school boundaries, typical repair issues for older homes, and how quickly homes sell.
Ask for recent client examples and references: A solid agent will show recent closings and explain their negotiation approach.
Communication preferences: Tell your agent how you like to be contacted (text, email, phone) and how often you want updates.

Summers Homes NW note: If you’d like local help in McMinnville, Lacey Summers and our team specialize in guiding first-time buyers in Yamhill County.

6. Make smart offers and negotiate wisely

Crafting an offer is part science, part strategy.

Use market data: An agent will analyze recent comparable sales (comps) to propose an offer aligned with current pricing.
Balance price with terms: A higher earnest money deposit, flexible closing date, or fewer contingencies can strengthen an offer without overpaying.
Inspection contingencies: Keep them — inspections protect you. Use repair requests strategically; ask for credits or price adjustments if serious issues surface.

Pro tip: In competitive markets, a personal letter to the seller, a fast closing timeline, or covering certain seller costs can make your offer more attractive.

7. During escrow: inspections, appraisal, and final walk-through

Once your offer is accepted, there’s a sprint to closing.

Home inspection: Hire a qualified inspector. Review the report line-by-line and ask questions.
Specialty inspections: If needed — roof, sewer scope, pest, or radon tests.
Appraisal: Required by lender to confirm value. If appraisal comes in low, you and the seller will need to negotiate.
Final walk-through: Do this within 24–48 hours before closing to confirm agreed repairs and property condition.

8. Closing and beyond: keys, utilities, and moving in

Congratulations — you’re almost there.

Closing day: Bring ID and any final funds. Review closing disclosures carefully.
Change locks and set up utilities: Prioritize safety and continuity of services.
Move-in checklist: Check smoke detectors, locate shut-off valves, and introduce yourself to neighbors if you can.
Build home equity: Make timely mortgage payments and plan for small upgrades that add value

Common first-time buyer mistakes and how to avoid them

Skipping pre-approval: Don’t start house-hunting blind.

Overstretching your budget: Stick to monthly payments you can sustain, not the maximum a lender offers.
Ignoring total costs: Budget for closing costs, maintenance, and emergencies.
Waiving inspections to win a bid: This is risky unless you fully understand what you’re giving up.

Ready to buy your first home in Oregon?

Lacey Summers and the Summers Homes NW team specialize in helping first-time buyers feel confident every step of the way—from pre-approval to keys in hand.