I was reading an article recently regarding the $8,000. tax credit for first time home buyers, and the writer expressed shock at how many people are completely unaware of it. I have noticed in my own practice recently that the larger PR machine has evidently not been doing a very good job at educating the public, as some of my clients reveal innocence on this subject as well when they discuss their leisurely plans to purchase “sometime in January of next year” etc. (the tax credit is only applicable if the home purchase is completed before December 1st of this year.) I also have heard more & more folks lately talking about attending “First Time Home Buyer Classes” presented usually by Realtors and Mortgage Brokers as a service to the public.
It seems to me that there is a real need for information out there right now. I thought I’d give a little primer below on at least the basics of what to expect during your first home-buying experience. Hope you find it helpful!
(Note: The sequence below does not apply to each and every transaction as each is individual and scenarios/time lines obviously vary. Your Realtor will be doing many more things behind the scenes than I indicate below as well, but I am sticking to outlining YOUR experience and how you can expect that to unfold… generally speaking.)
- Retain services of a mortgage professional (lender) to give you best options for financing, and have an approval letter ready for you when you make an offer. Discuss “closing costs” with your mortgage professional, and review the “good faith estimate” that they will provide to you. (If you have a relationship with a Realtor first, ask them to recommend good resources for you.)
- Work with your Realtor to find the home that meets your needs.
- Work with your Realtor to determine appropriate offer & details/then write it up.
- Realtor submits offer to Seller along with approval letter from lender and earnest money check. Note: The EM check is to show good faith, and is applied to the sale should your offer be accepted and proceed to close. Talk with your Realtor about what amount will put your best foot forward. (*Sometimes Promissory Notes may be used, and/but I highly recommend using an EM check to be taken most seriously.
- Receive response/acceptance/counter from Seller in time frame you specified on the offer (in a normal transaction you typically ask for response within 24 hours, but if it is a “short sale”, the process of hearing back that you are indeed accepted by all parties concerned can take months.)
- Upon mutual acceptance (usually within 1-3 days), schedule an inspection ASAP (you have 10 business days to conduct inspections & may back out if concerns arise during this time). Your Realtor will help you with this- Ask him or her for good resources to guide you through the process of inspecting the home. Prices vary, but a 2000 square foot house will often run around $400. more or less, and size as well as other factors come into play in the cost of an inspection.
- Upon mutual acceptance, your earnest money check is sent to the Escrow Office, and held by them on your behalf until closing, or until nullification of the offer if this occurs within your inspection period.
- Realtor writes and negotiates any Inspection Addendum items during this period according to your wishes (you will work with your Realtor to discuss and determine any give and take in the negotiation process that may occur. Your Realtor will offer you information and give professional advice, negotiating on your behalf and with your permission. You are in the driver’s seat, and you make the final decisions albeit under good counsel.
- Upon mutual acceptance & reaching the end of your inspection period, your Realtor notifies the lender who orders the appraisal.
- Your Realtor continues to work with the lender as the lending process moves forward. As long as the appraisal comes back at or above sale/offer price, you will proceed to closing through the underwriting process of the lender. Should the property not appraise for at least the sale amount, the lender will bring this to your attention and there will be some decisions for you to make around the sale price and your desire for the home (you are not required to pay any monies over and above the appraisal amount, and lenders will not lend more than the appraised value generally speaking.)
- You may be requested by the underwriter to provide additional information on a case by case basis. Your Realtor will work with you and help in any way possible and appropriate to facilitate the flow of information required from you, but you are in the driver’s seat as far as responsibility to provide the necessary information to the lender.
- When all underwriter/lender requirements have been met, the file is signed off by the underwriter, and passed to Escrow. The whole lender process usually takes around 3-4 weeks.
- Escrow processes all paperwork, title insurance, and all distribution of funds between you and the seller as per the contract provisions agreed upon between you and the Seller. Documents are drafted, and a “signing date/time” is scheduled. (“Signing” is not the same as “Closing”.)
- Your Realtor will often attend your signing with you to help with any questions that arise, and to offer moral support. (Frankly, I just love being a part of the exciting culmination of the home buying adventure!)
- Escrow will then send signed documents back to the lender, and to the county. The transaction will then “close” or “fund & record” in 1-2 days after signing, at which time you will receive a call that you are a homeowner!
- Your Realtor will usually meet you at your new home and deliver you the keys. (More fun!)
- The whole process from offer to close usually takes around 30 days… sometimes 40-45. It can take a little longer depending on the lender, and sometimes it takes less time than that. You and your Realtor will assign a “no later than” date on your offer in conjunction with talking to the lender about their current load & closing time line. All parties are then obligated to “perform” within that time frame, or draft an addendum extending the closing date if that proves necessary and IF all parties agree to do it. (Because there always exists the possibility that one party may not agree to sign an extension addendum, and the contract specifically states “on or before” a particular date, the closing date is a binding contractual agreement and should be taken very seriously. As a buyer, your earnest money is at stake if you should not “perform” to contact terms.)
The above may be missing some pieces of the puzzle as each transaction is different, and various issues can arise during the process, but hopefully this give you a basic idea of how it will go!
Along with my own open house at 4447 Golden Lane, there are a total 17 opens planned for Lake Oswego on May 24th. I’d love to have you come by to see me tomorrow. My listings is a 1616 square foot townhouse in Mt. Park. Recent updates include gorgeous granite counters in the kitchen, laminate flooring, and new windows. It has 2 large bedrooms and 2 1/2 baths. Probably the nicest feature is that it has huge, south-facing windows that look out across trees and well-cared for landscaping. It is also an end unit. It’s priced at $255,000. I’ll be there from 2 to 5pm. You’ll find my signs at the corner of Melrose and Fosberg and from there you can easily follow them into the complex on Thundervista.
La Provence is the youngster in the group. The founders of the restaurant, Pascal, Didier, and Alain came from France in 1996 wanting to share their passion for the French Patisserie, which is a bakery that specializes in pastries and sweets. Don’t be fooled by the outstanding selection of breads, tortes, cakes and croissants that are showcased as you walk-in. This restaurant offers first class food well beyond the temptations of sweets. When the restaurant first opened it specialized in breakfast and lunch. My favorite breakfast choice has long been the smoked-salmon hash. Served over crispy hash browns, the smoked salmon is topped by a poached egg and creamy dill sauce. The homemade bread makes delicious toast, and the coffee is outstanding. For lunch I recommend the French onion soup. It is the best I have ever had. And in the last year or so the restaurant has begun to stay open for dinner service. I recently had a wonderful dinner there at a time when they were offering live music. I consider the pricing to be affordable and the food highly reliable. The atmosphere is relaxed and sunny with bright splashes of color from the art work and provencial-style table cloths. Located at 15964 Boones Ferry Rd, you can find menus and more information at their website,
Next door to La Provence is Gubanc’s. Gubanc’s and I have something in common. We both came to Lake Oswego in 1976. I guess you could say that we kind of grew up together. Owned by Tony and Anne Gubanc, this restaurant is a neighborhood classic. The atmosphere is classy while being comfortable. Not too expensive, you’ll find the food to be Northwest with an interesting flair. The restaurant is most famous for its soups. They have 80 different varieties that were personally created for their menu. While the traditionals like clam chowder are available, you will also often find unusual selections like Chicken and Pear or Santa Fe Chicken with White Bean. Yum. A great deal at lunch is the Soup Board. For $7.50 you get a generous bowl of homemade soup with a side board of bread, cheese, and fruit. Dinner options include South Western Pork Wraps, Chicken and Dumplings, and Halibut Provencial. For dessert they are well known for their Fresh Fruit Cobbler. You’ll find it busy every night of the week. There is a full bar and I think there are quite a few regulars who eat dinner here several nights a week. To continue to fill the dining room night-after-night for over 30 years, you know they must be doing something right. Located at 16008 Boones Ferry Rd. For a copy of the menu and more information, visit Gubanc’s website at 
Finally, I want to brag about Riccardo’s. This is my favorite “special occasion” restaurant in Lake Oswego. Not that you would only want to go there on special occasions, like an anniversary or a birthday. I have gone there with friends for a casual lunch or dinner many times. It’s just that I’ve also celebrated many birthdays and anniversaries there. In my mind, it is a special place that provides just the right atmosphere for a special night out. Opened in 1980 by Riccardo and Georgette Spaccarelli, it is very fine Italian dining at it’s best. The Spaccarellis are known for their annual trips to Italy where they visit wine producers and make selections to offer with their food. The entire meal is extremely authentic. It’s also mouth watering and complex. My favorite item on the menu is the Penna Strozzapreti. Penna pasta with a sauce of cremini mushrooms, black olives, garlic, and sun-dried tomatoes in a light cream sauce that is then dusted with parmigiano reggiano. That is comfort food to me and a real taste treat. There are two dining rooms. The inside room seats 55 and is very nice. But my favorite, and where I always make it a point to dine, is the outside patio. It seats 75 and is surrounded by high walls that in the summer are topped with flowers. There are terra cotta tiled floors and several fountains. The perimeter tables do have a roof over them and in cooler weather they have numerous heaters to keep you warm. No, I don’t think you’d be able to dine out there in January. But for most of the year you can. It is not only comfortable, you will feel like you’ve gone to Italy. Riccardo’s is just across the street from Gubanc’s and La Provence at 16035 Boones Ferry Rd. You can find their menu and more information at their website,
There is such a panoply of amenities in Lake Oswego that Dianne and I have been talking about incorporating profiles of local favorites from time to time. I thought I’d begin with a very special person who I would be lost without… my local “dog-whisperer”, Valerie Pulley.
seems it has been the subject of pets, and dogs in particular. We all know what a Portuguese Water Dog is now, thanks to “Beau” at the White House. I know our own friend & blogging cohort, Ron Ares, wrote a post most recently about his own dog, Nyree (left), adopted by the Ares family to save her from becoming a casualty of foreclosure. I’ve seen pieces on local and national news about the amazing number of dogs that have been abandoned or taken to shelters as fallout from the current economy, and it is heartbreaking to consider.
Staffordshire Terrier, Fedore, is her pride & joy, I’ve been taking my crazy black Standard Schnauzer, Kato (right) , to Valerie for years, and she is the only one who can calm him down enough to let his toenails be clipped. Turns out others have noticed this talent as well, and dog owners from far and wide bring their “hard to handle” pets to Valerie for tender loving care. Valerie mentions that “Some dogs have been kicked out of every grooming salon in Portland for biting, scratching, and generally squirming and freaking out. They bring them to me because I am the only one they’ve found to be able to handle them.” I 
ask her why she thinks this is, and she says “I’m just not afraid of them, and I care about them.” She has been working in the Lake Oswego area for around 12 years now, spending some of her career at the Lake Oswego Dog Shoppe, and now is working for 
It’s time to showcase another of Lake Oswego’s wonderful neighborhoods, Westridge. Westridge is not very large. According to 
Second, it has two terrific parks. Cooks Butte Park is on the Eastern edge of Westridge. It’s 42 acres of natural area. It’s what is called a passive park. In other words, it is left quite natural with soft-surface trails for hiking, but not a lot of development such as picnic structures or play grounds. It is best enjoyed for the trees, the trails, and the views. The top of the park has an elevation of 718′. It’s a wonderful spot to hike up to and then sit and watch the sunset. The other park is Westridge Park. It’s adjacent to Westridge Elementary School. It’s 2.2 acres and has a playground, a volleyball area, and a soccer/little league field. This is where you take the kids to burn off some energy and to enjoy a fine, sunny afternoon.
Housing in Westridge is all single family homes. There are no condominiums or apartment buildings. The pricing of what is currently for sale goes from a low of $498,500 for a 2670 square foot home with 4 bedrooms and 3 baths, to a high of $899,900 for a 3243 square foot home also with 4 bedrooms and 3 baths. I would say that the most basic criteria for the variation in pricing is whether the home has been updated or not. The neighborhood was mostly built in the 1970’s and 1980’s. So if the house still has original kitchen, baths, woodwork and windows, it is just not going to be worth as much as a house that is
I want to point out a house that Linda and I visited on Broker’s tour on May 5th, 9 Westminster Dr. This home is an excellent example of great value. Built in 1976, it has been extensively updated. The kitchen and baths are all recent. There is new paint and flooring. The house has 3814 square feet, with 4 bedrooms and 2 1/2 baths. Probably the most distinguishing feature is a wonderful sunroom that allows you to sit and enjoy the garden all year round. The landscaping is exceptional. There is extensive brick work in patios and outdoor entertaining areas. The yard has sprinklers and it looks to me as though a professional was involved in the layout. It is really wonderful. Priced at just $597,000 it is a stand out for value. I tell people that in this market it is both a beauty pageant and a price war. I think this house wins in both categories.