How To Prep Your Credit To Buy A Home

How To Prep Your Credit To Buy A Home

Stone Bridge Mortgage Group_Loans to Help Gresham Borrowers Build Credit

 

Gresham Locals Looking To Buy Homes Need To Build Credit

One of the most important things to have in order as you prepare to buy a home is your credit score. Gresham home buyers should know that their credit score plays a huge role in being able to secure a mortgage. Conventional mortgage lenders will typically want a FICO score of at least 720, or in some cases 740, but those with a score above 580 may still qualify for an FHA loan.

In order to build your credit up to where you need it, try the following:

Review Your Credit Report

The first step Gresham home buyers should take, several months before they plan to get a mortgage, is to check their credit report for any issues. Checking two to three months in advance should suffice if you generally pay your bills on time. This leaves you time to correct any possible errors. However, if you have late payments or other derogatory items on your account, check six to nine months in advance.

Dispute Any Inaccuracies

Check closely for any inaccuracies on your credit report. For example, there may be an item you’ve paid for that is marked as unpaid, or an account showing up that isn’t your own. If this happens, file a dispute with the credit reporting agency.

Have Several Tradelines

Gresham home buyers will find that conventional loans require at least three tradelines (any combination of credit cards, student loans, car loans, and so on) that have been active within the past 12-24 months. FHA loans only require two tradelines. While it’s fine to have more, if you have fewer you won’t be able to qualify for a mortgage. If you need to open additional tradelines, try getting a major credit card like a Visa or a Mastercard at least six months before you apply for a mortgage and using it for items you would buy anyway. Never charge more than 30% of your allowed limit and be sure to pay it off in full when you get your bill.

Leave Older Credit Lines Open

Older tradelines actually help boost Gresham home buyer’s credit scores. Even if you don’t use them often, keep them open. Use those credit cards every few months and pay off the balance in full so those tradelines remain active.

Avoid Opening New Credit Lines

Don’t open any new credit lines within up to six months before applying for a mortgage, as this can temporarily lower your credit score. Because the credit bureau doesn’t know how you’ll handle the new credit, it is a risk factor.

Stop Buying On Credit

Gresham home buyers may be tempted to rush out and charge new appliances or furniture for a new house before closing. This is a bad idea. Having a debt utilization ratio above 30 percent right before closing could disqualify your loan. Unless you can pay cash, wait to purchase the new furniture until after the loan is closed.

Don’t Shuffle Money Around

When Gresham home buyers apply for a mortgage, you’ll find that you’ll need to provide several months of bank statements for your checking and savings accounts. Suddenly having large transfers between your accounts will show on those statements. Leave your money and accounts the same for at least 3 months.

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 entire home buying process. We can help get you pre-approved for a mortgage and assist with 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 your home buying needs!

 

Call us today at 503.661.5580

 

Loans to Help Gresham Borrowers Build Credit

How To Prep Your Credit To Buy A Home

 

Stone Bridge Mortgage Group_Loans to Help Gresham Borrowers Build Credit

Credit Building Loans for First Time Home Buyers in Gresham

First time home buyers in Gresham will soon learn that in order to qualify for a mortgage loan, you must have good credit. The good news is that there are loan types that are specifically aimed to help you build credit. You’ve likely heard of “credit builder” loans that are offered by certain community banks and credit unions. Some up and coming online lenders are now making these types of loans more readily available to home buyers in Gresham and across the United States.

Gresham Locals Can Save Money and Build Credit at the Same Time

Self Lender and Credit Strong are two financial technology companies offering online credit building loans. The loans tie what you’re borrowing to forced savings. That is to say, the loan you take out goes directly into a savings account; you then pay back the loan amount to the lender. For example, customers may be offered a small loan of $1000. The customer agrees to have the money set aside in a savings account and, over the course of a year or two, pays off the lender. Only once the loan is fully paid does the customer have access to the money saved plus any interested earned.

Credit Building Loans Help You Save for rhe Future

This type of loan is not for someone who needs money tomorrow. However, this will help first time Gresham home buyers save money to put towards big purchases and emergencies. Additionally, it helps your credits score by a wide margin. According to Credit Strong, borrowers who successfully repay a loan will typically see a 40-point increase in their credit score. Someone starting without sufficient credit history will typically go from having no score to one in the mid-600s. Considering that a “good” credit score is 670 or above, this is an incredible difference that can be made over the course of one loan. For Gresham locals looking to buy a home, credit building loans can be used both to help you save for a down payment and to build credit to qualify for mortgage loans.

The Downside to Credit Building Loans

No loan will help you build credit if you don’t pay on time. Not only will late payments incur fees, but they will negatively impact your credit score. Be sure you are ready to pay back this type of loan before agreeing to one.

Looking for Help with Mortgage Services? You can Rely on Stonebridge Mortgage Group!

For professional assistance with mortgages, look no further than Stonebridge Mortgage Group. You can rely on Stonebridge Mortgage Group to help guide you through the home buying process. If you’re ready to apply for a loan and want to go through the process online, Stonebridge Mortgage Group offers online applications. We also 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 us today at 503.661.5580

 

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