If I were in your shoes, I would probably rent somthing until I get a very good idea of Salem and what the area has to offer. That way, when you are ready to buy, you will be able to pick the right location. You can be pre-approved by the bank that you are already doing business with, either in Oregon or Arizona, if they are the same bank (IE Wells Fargo or BOA) so much the better.
Since you will have the proceeds from your present home, you might not need to obtain such a large loan or one for many years.
Shelley, have you heard of 1031 exchange? i recommend you look at this website to see if it will apply in your case. It's 1031exchangeadvantage.com

Hi Shelly,
You are choosing a wonderful place to live the next phase of your lives! Salem is a very friendly city with many aspects to offer retirees as well as anyone. I have lived here my entire life and can tell you there are many lovely areas in Salem. If you choose to purchase now because of the well priced homes, and the historically low interest rates available, a realtor, (like myself), could help guide you in finding the best area for you and find the best prices. I can also help you in locating a knowledgeable mortgage lender to help answer your questions regarding you loan, and what is the best course of action to take in that regard.

Good luck with your move, and if I can be of any help, you may contact me anytime at suziwhite@gmail.com or 503-884-2954

Sincerely,
Suzi White, Broker
Coldwell Banker Mountain West

I grew up in Salem, and know a lot about the area. Home prices around Salem and Keizer are still going down. Given that, and the fact that you'll be new to the area, I would recommend renting for awhile. I would recommend trying to find something on a 6-month lease rather than a year-long lease, however. That way, you'll be better positioned to take advantage of the lowest-possible prices when the market changes direction.

Best of Luck,

Craig Loughridge

I work in Salem and I can tell you there are a lot of great opportunities to buy. You have to weigh that with the advantage of renting and getting to know the areas. A good Realtor should be able to answer your questions about various neighborhoods. It is easy to get pre-qualified when your retired. Loan officers will look at your entire financial situation and not simply your employment status.

Since you are looking to retire, I think renting for a year here while you figure out where you want to live would probably be a wise choice. You could do rent to own, but it will cost you more than a regular rental and with home prices still declining here, that may not be a good financial choice for you.

As far as retiring, they look at your retirement income for the loan and base your ability to pay on those funds. It isn't any different than a regular home purchase.

Hi Shelley - your home buying process is similar whether retirement or not. You are on the right track with your prequalification. Your potential lender will need to look at what the income potential will be when determining your mortgage budget. Will this come from monthly draw downs from a retirement account, annuity etc. The big picture of how you will finance retirement even if the "new retirement" means still working and producing an income.

The potential to rent to own has its good and bad. Does not necessarily give you the strongest position in negotiations on price, since the seller is not getting out from under the home.

Coming from Arizona (I'm originally from the Mesa area though I have been an Oregonian for 30 years now)
it may not be a bad idea to get a short term rental as you determine your best location and finding suitable employment, and the new retirement budget.

If I can help further, please call or email 503-495-5231 / info@robertanopson.com