A Buyer’s Guide to What Paperwork Is Needed to Buy a House
If you have ever purchased a house or are currently in the process, you know that the paperwork can be bewildering, at best.
If yoAgreements. Disclosures. Addendums. Titles. The list goes on.
Figuring out exactly what paperwork you need is hard enough, but knowing how to fill it out is a whole other story.
If you’re overwhelmed and wondering what paperwork is needed to buy a house, you are in the right place.
We will discuss the documents needed to purchase a home and the easiest way to make sure that your paperwork is done right.
Table of Contents
- What Documents Do I Need to Buy a House in Oregon?
- Pre-Approval: What Paperwork Is Needed?
- What Documents Do I Need to Buy a House After Pre-Approval? 7 Critical Documents
- 4 Common Closing Documents Needed to Buy a House
- Peggy Hoag Real Estate’s #1 Tip For Home Buyers Filling Out the Paperwork Needed to Buy a House
- Knowing What Paperwork Is Needed to Buy a House in Oregon Is Vital — Protect Your Investment by Working With an Experienced Real Estate Broker
What Documents Do I Need to Buy a House in Oregon or Washington?
IIf you are planning to purchase a home in Oregon or Washington, be prepared to complete volumes of paperwork, including:
- Pre-approval paperwork
- An offer letter
- A purchase agreement
- Seller’s disclosure statements
- A home inspection report
- Inspection contingencies
- Addendums
- Title review documents; and
- A variety of closing documents
Pre-Approval: What Paperwork Is Needed?
Preapproval is the process of determining the amount of money you’ll be able to borrow to purchase a home.
You’ll complete a mortgage application and undergo a credit check with the goal of receiving a pre-approval letter. As a part of the process, you’ll be required to submit a plethora of documents that may include:
- Copies of your current pay stubs for at least the last two pay periods
- W-2 information for the previous calendar year
- Copies of your federal tax returns
- Bank statements for the past three months
- A copy of your current driver’s license
- Asset statements, including any:
- Retirement accounts
- Stocks; or
- Bonds
Additional information may also be required depending on your financial situation, such as reasoning for recent large purchases or details about how you spend your money.
The pre-approval process is critical if you hope to obtain a loan, so everything must be done properly.
What Documents Do I Need to Buy A House After Pre-Approval? 7 Critical Documents
#1: Offer Letter
Your real estate agent may encourage you to write an offer letter to the seller — particularly if it’s a seller’s market.
An offer letter is simply a short letter to the seller explaining why you want to buy their home. Typically, you’ll include a bit of personal information about you and your family and why this home is perfect for you.
The goal is to make a personal connection and tug on the seller’s heartstrings.
As you view their home, you’ll want to keep your eyes peeled for any commonalities that you share. For example, maybe …
- You went to the same college
- Have the same decorating style; or
- Both have Great Danes.
The goal is to connect in a personal, relatable way.
This is also the place to explain any specific details of your offer, such as why the seller should consider your lower-than-asking-price offer, or why you would need to move in a week earlier.
#2: Purchase Agreement
The purchase agreement is signed by the seller and the buyer and formalizes the purchase, committing both parties to the terms of the contract.
Purchase agreements line out all the financial details, including:
- Description and condition of the property
- Purchase price
- Identification details for the buyer and seller
- Any conditions and contingencies
- The rights and obligations of both parties
- Everything included in the sale, including appliances, curtains, etc
- Amount of the earnest money deposit
- Itemized closing costs
- Terms of possession
- Closing date; and
- Signatures of buyer and seller
#3: Seller’s Disclosure Statements
Both Oregon and Washington laws maintain that a seller must disclose to the buyer any material defects they are aware of that may not be readily apparent to their buyer.
This could include problems such as;
- Mold
- Odors
- A leaky roof
- Regular neighborhood disturbances
- A basement that fills with water each time it rains
- Asbestos; or
- Lead-based paint
#4: Home Inspection Report
A home inspection report is a detailed list outlining the condition of your home and is one of the most frequent contingencies included in purchase agreements.
Created by a home inspector, the report may include things such as:
- The condition and estimated age of the roof
- Any cracks or damage to the foundation
- The condition of:
- Siding
- Downspouts; and
- Gutters
- An assessment of the plumbing system
- The condition of chimneys
- The presence or absence of pests
- The condition of gas and electrical systems; and
- The state of HVAC systems
#5: Inspection Contingency Paperwork
An inspection contingency states that a professional home inspection is required within a specified amount of time, usually five to seven days.
This must take place before the real estate contract can become binding, and ensures that the buyer receives critical information that will allow them to:
- Hammer out repair details
- Negotiate the sale price, and in some cases
- Walk away from the sale with their earnest money intact.
#6: Addendums
Addendums can incorporate:
- What is included in the sale
- Changes in the price agreement
- Improvements that must be made before payment; or
- Other agreed-upon requests.
#7: Title Review Documents
The title review process identifies the property owner and helps the prospective buyer to understand the full extent of the real estate rights affecting the property.
It will detail any liens or other issues with the title to ensure that it is in the promised condition outlined in the contract and is legal according to the local laws.
Title documents are a critical part of the paperwork you need to buy a house and can be extremely complex.
This is why a professional real estate broker such as Peggy Hoag is a crucial component of the home-buying process.
4 Common Closing Documents Needed to Buy a House
#1: Mortgage Promissory Note
A promissory note is a vital piece of the home loan application and mortgage agreement.
It promises that a borrower agrees to be indebted to a lender for repayment of a loan.
The mortgage promissory note also outlines how the loan will be repaid. This includes providing details about monthly payments and the length of time allotted for full repayment.
#2: Deed of Trust
The deed of trust includes three parties:
- A lender
- A borrower; and
- A trustee
The lender gives money to the borrower, who then gives the lender one or more promissory notes.
As security, the borrower then transfers a real property interest to a third-party trustee. If the borrower defaults on the loan, the trustee has the right to take full control of the property.
#3: Deed
The deed is a signed legal document transferring ownership of an asset to a new owner.
What is the difference between a deed and a deed of trust?
The difference boils down to the type of ownership interest conveyed in each document:
- A deed conveys a full ownership interest.
- A deed of trust conveys a security interest.
#4: Closing Disclosure
A closing disclosure outlines the terms of the loan.
It provides concrete figures for the:
- Monthly mortgage payment
- Interest rate
- Insurance and tax costs
- Closing costs; and
- Potential penalties (including prepayment penalties)
The closing disclosure provides the exact amount needed and is a critical piece of paperwork when obtaining the cashier’s check for your down payment and closing costs,
Peggy Hoag Real Estate’s #1 Tip For Home Buyers Filling Out the Paperwork Needed to Buy a House
What is the number one thing that you need to keep in mind when you’re filling out paperwork to buy a house?
It’s simple: You’re responsible for anything you sign — so remember what you’re signing.
Once your signature has been placed, there is no going back and saying that you didn’t understand what you were signing.
This is why you need the expertise of an experienced real estate broker, like Peggy Hoag.
Knowing What Paperwork Is Needed to Buy a House in Oregon Is Vital — Protect Your Investment by Working With an Experienced Real Estate Broker
Buying a house can be overwhelming.
But with the right real estate agents, it can be a walk in the park.
If you are planning to buy a home in Oregon or Washington, Peggy Hoag Real Estate is experienced in understanding what paperwork is needed to buy a house and can remove the guesswork from the process.
With over 30 years of experience and our vast knowledge of the area, the team at Peggy Hoag Real Estate has the know-how to give you a smooth home-buying experience.
From the first to the final signature, Peggy Hoag Real Estate navigates the paperwork on your behalf, so you can focus on the joy of owning your new home.
Peggy Hoag Real Estate is here to help your dream become a reality. Contact us today.