Buying A Home For The First Time?
If you live in the Gresham area and are considering buying a home for the first time, you can seek the help you need at Stonebridge Mortgage Group. Stonebridge Mortgage Group is a Gresham based mortgage group that offers top-notch mortgage-related services, including but not limited to loan officer services and mortgage broker services. We aim to help our customers understand the sometimes confusing ins and outs of home buying. We want to help you get the right home for the right price with the right mortgage plan. The market is looking favorable for home buyers this year, so this may be a great time to purchase your first home! First, here are some tips to consider as a first-time home buyer in Gresham.
Find Our How Much You Can Afford
When buying a home, sticking to your budget is everything. You don’t want to buy a home you won’t be able to afford to pay for. Usually, it’s wise to aim to spend no more than 35%-45% of your pre-tax income on mortgage, property task, and home insurance combined. You can use online mortgage calculators to determine how much home you can afford with your yearly income.
Be Mindful Of Finances And Credit Scores
Not only is your credit score an important part of qualifying for a mortgage, but it is also part of what determines your interest rate. If you get a Federal Housing Administration (FHA) backed mortgage, then you can qualify with a credit score as low as 500. However, with a score this low you will have to pay a 10% down payment. With a score of 580, your FHA down payment requirement lowers drastically to only 3.5%. Conventional mortgages require a credit score of at least 620, and people who have a credit score of 740 or higher will usually get even better mortgage rates.
Saving For A Down Payment
First-time home buyers in Gresham should know that the bigger a down payment they can afford, the better their interest rate will be. While you can put as little as 3% down, it’s better to put down more if you can afford it for the lower interest rate and smaller overall mortgage after.
Don’t Forget The Additional Costs
When saving for your down payment, remember that you’ll also need to be able to cover closing costs, which can be anywhere form 2%-6% of your loan amount. Even after closing costs, though, you’ll want to make sure you have some savings for home repairs and maintenance as well as emergencies.
Stonebridge Mortgage Group offers the best mortgage related services!
Pre-Approval Is A Must
This is another important step because it lets you know what prices you should be looking for to buy a home. A lender will review your finances, pull your credit, and give you an estimate on loan amount and interest rate. Even once you’re approved, don’t plan to buy the max you’re approved for. Shop around and compare to save yourself money on mortgage rates, lenders fees, etc.
There are many types of mortgage loans. We’ve already mentioned conventional loans and FHA loans, but there are also loans that cater to specific groups of people. Military service members and veterans, as well as eligible spouses, can opt for loans through the VA. Another type of loan is availability through the U.S. Department of Agriculture (USDA), which are for low and moderate income home buyers who want property in certain rural areas. There are also a number of programs for first-time home buyers, so don’t be afraid to look around.
Have more questions about buying a home in Gresham for the first time? In need of professional mortgage-related services? Allow Stonebridge Mortgage Group to help!
Stonebridge Mortgage Group Offers Guidance On All Mortgage Matters
For professional assistance with mortgages and related services, look no further than Stonebridge Mortgage Group. You can rely on Stonebridge Mortgage Group to help guide you through the home buying process. We help get you pre-approved for a mortgage and help with your real estate loans and other mortgage solutions, both residential and commercial. Stonebridge Mortgage Group serves the greater Portland area and is located in Gresham, Oregon. Don’t wait to get quality assistance with buying your home! Call Stonebridge Mortgage Group today at 503-661-5580.