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!
When you’re considering buying a home for the first time, it may seem more fun to start looking at houses right away, but it isn’t practical. Before you start shopping around for the perfect Gresham home, you should get pre-approved first. Once you’ve been pre-approved, it will be easier to look for homes in the Gresham area that are within your budget.
Why Is It Useful to Get a Pre-Approval First?
During the pre-approval process, you will be able to discuss loan options and budgeting, allowing you to get a more solid idea of what kind of home you can afford in Gresham. Once you decide on a mortgage lender, they will first check your credit rating and alert you to any problems that need to be fixed. Once those issues have been resolved, your lender can proceed with determining your maximum loan limit.
Your maximum pre-approved loan limit gives you the ceiling for determining how much home you can afford in the Gresham area. It isn’t wise to automatically assume you should use up to the max of the loan, however. Take into account how much your monthly payment will be and if you’re comfortable with that. If you’re not, aim for a house being sold at a lower price.
It should also be noted that those looking to sell a home will be more impressed by potential buyers who have been pre-approved. This means that they know you are more committed to the buying process and are prepared to follow through with a sale and may be more willing to negotiate with you.
Shopping for a Home in Gresham? Get Pre-Approved Online with Stonebridge Mortgage
Our online pre-approval application is convenient and one of the many ways Stonebridge Mortgage Group helps homebuyers in Gresham with the home buying process.
If you’re ready to get pre-approved for a home loan, Stonebridge Mortgage Group makes it convenient to apply online. Our online application makes it easy to get pre-approved so you can start shopping around for your new home. Get started on your pre-approval application now!
Stonebridge Mortgage Group Can Help with Pre-Approval and Other Mortgage Services in Gresham
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 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! We can help you get started with the home buying process today.
You can also visit us or call us for assistance with your pre-approval application.
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!
Buying a home is a huge step — one that can lead you down the path to financial security. However, owning a home before you’re ready can be a step in the wrong direction. It’s not just about whether you can afford a home — ask yourself if you should and if you’re really ready for that level of responsibility. Here are a few questions to ask yourself before buying a home.
Are your finances in order?
Take into account your debts, whether you have credit card debt or debt from various types of loans. Remember that your credit score is what a bank will use to determine how much of a mortgage loan you’re eligible for. More than that, if you routinely find yourself with a lot of debt, it probably means you do not have the finances necessary to purchase a home. Clean up your debt first and get to a place where you’re more financially stable before taking on the responsibility of a mortgage payment.
Have you saved enough for a down payment?
Before you even consider looking for a home, you’ll need to need to have enough saved for both the down payment and the extra, sometimes unforeseen, costs. With the right qualifications, today you can buy a home for as little as 3.5% down. However, you’ll also need to have enough money to cover closing costs, insurance, taxes, and any necessary repairs. This could easily add up to thousands more than the down payment alone, so you need to be prepared.
Can you really afford the payment?
Can you really afford to pay all of the monthly expenses of owning a home? You may have been told you can own for the same price as renting. While the amount you pay in rent probably would be similar to the amount you would pay in principle and interest on your mortgage loan, however, there are other costs to consider. In addition to a monthly mortgage payment, you’ll have to pay property taxes, insurance, homeowner’s association fees, city assessments, water, sewer and/or garbage, and other utilities your landlord may currently be covering for you. Know your budget before you shop for a home and keep these costs in mind.
Are you ready to settle down?
Buying a home is a long-term investment. If you change your mind quickly and sell after only a few years, you’re losing money. Any increased value within the first few years likely won’t match the closing costs you paid for a home. Make sure you’re in a job you’re content to stay with for some time. You don’t want to buy a home only to change to a career that brings you to another city or state. A good rule of thumb is to be prepared to stay in your home for at least five years.
Can you fix a leak?
When you own a home, you can no longer rely on a landlord to fix sudden problems. You have to become self-reliant. If your sink begins to leak, or if your dishwasher breaks, you need to either be able to fix it yourself or have the resources to pay someone to fix it. If you can fix it yourself, of course, all the better – it’ll save you money in the long run.
Stonebridge Mortgage Group can advise you on your mortgage needs.
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 are in Gresham, Oregon. Don’t wait to get quality assistance with buying your home!
Getting approved for a mortgage for the first time can be difficult. When you’re buying your first home, you may not be familiar with how mortgage loan approvals work. There are key requirements you must hit in order to get that much sought-after approval. Take the time to educate and prepare yourself before applying so you’re not going in blind.
Know your credit score. Few things halt a mortgage loan application quicker than a low credit score. Don’t assume that your credit score is high enough to qualify – check it first. Not only will checking your credit score let you know where you stand, but it will also tell you if you’ve fallen victim to identify theft. That alone is worth checking on your credit score frequently!
Many lenders require a minimum credit of 680 (or, for FHA mortgage loans, 620). If your score falls below the minimum, lenders can and will deny your request for a loan. In addition to your credit score, lenders will also look at to see if you have missed or frequently late payments on your bills. Neither looks for you. Make sure you clean up your credit history before applying for a loan.
Save up your cash. Many mortgage lenders require a down payment, so be prepared to hand over cash before walking in to the lender’s office. Having no cash to offer can get you quickly rejected. How much of a down payment you’ll need can vary on a few factors, including the type of loan you’re seeking and the lender. Typically, you’ll need a 3.5% down payment at least, but if you can afford a higher down payment then that can work for you in the long run. A 20% down payment not only knocks down your mortgage balance, it also alleviates private mortgage insurance or PMI. Lenders attach this extra insurance to properties without 20% equity, and paying PMI increases the monthly mortgage payment.
Keep in mind that a down payment isn’t the only think you’ll need cash for, too. You’ll need to pay for closing costs, home inspections, home appraisals, title searches, credit report fees, application fees, and other expenses. Closing costs alone are roughly 3% to 5% of the mortgage balance and must be paid to your lender before you can finish the deal.
Don’t switch jobs in the middle of buying a new home. Any change to your employment an income status can put a stopper in the mortgage process. Your lender, after all, approves your home loan based on the information you provided in your application. When that information changes – especially in a way that negatively impacts your income – it can effect the lender’s confidence that you’ll be able to pay off your loan. They will need to reevaluate your finances to see if you still qualify for the loan.
Pay down old debt and avoid new debt. You can qualify for a mortgage loan without a zero balance on your credit cards. However, your current debts will determine if you can get a mortgage and how much of a loan you get. If you have a high debt when lenders evaluate your debt-to-income, the lender can either turn you down entirely or offer a much lower mortgage. A general rule of thumb is that your monthly debt payments, mortgage included, shouldn’t exceed 36% of your gross monthly income. The lower your consumer debt, the better your mortgage rate.
After you’re approved for a mortgage, avoid new debt while going through the mortgage process. Your lenders will re-check your credit before closing. If you’ve acquired new debts, this can stop the mortgage closing. So, don’t make any major purchases – such as a new car or home appliances – until after you’ve closed your mortgage loan.
Get pre-approved for a mortgage. Getting pre-approved before looking at homes is the responsible choice. You know what kind of budget you’re working with and you’re less likely to fall in love with a house you can’t afford. To get pre-approved, you simply contact a mortgage lender and submit your financial and personal information. If they accept, your pre-approval will include everything you need from how much you can afford to the interest you’ll pay on the loan. With a pre-approval letter on you records, the funds will be available as soon as a seller accepts your bid.
Know what you can afford. Lenders can and sometimes do approve clients for more than they can afford. If your lender offers you a high loan, you don’t have to use all of it. Still focus on picking a home that is comfortably within your budget. When lenders determine pre-approval amounts, they’re basing their numbers on your income and credit report. They’re not factoring in day to day costs such as daycare, insurances, gas, or groceries. You must have a complete plan for you monthly costs and avoid something you simply can’t afford.
Stonebridge Mortgage Group can advise you on your mortgage needs. For a 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 are in Gresham, Oregon. Don’t wait to get quality assistance with buying your home!
Having a good credit score is crucial for many aspects of adult life. Your credit worthiness plays a large role in your ability to secure any type of loan, such as getting approved for a home loan, and your rating depends largely on your credit score. However, there are loans that are meant to allow customers to establish credit histories and to grow their savings.
These “credit-builder” loans are typically available through credit unions and community banks. Recently, though, similar types of loans are being made more widely available using digital technology.
Self-Lender (now available nationwide) and Credit Strong (available in all states except North Carolina, Vermont, and Wisconsin) are two financial technology companies which offer these types of loans online.
How do these loans work?
Unlike other loans, you don’t need a pre-existing credit history to qualify for these loans. The purpose of these loans is to help customers build both their savings and their credit score. This is accomplished by tying borrowing to forced savings.
Customers will typically receive a small loan — something like $1000. This money is then set aside in a special savings account and is unavailable to the customer until the loan is paid off. Customers make payments in monthly installments over the course of one or two years. When the loan is paid off and the savings account is made available to the customer, they will have access not only to the money in the account but also any interest earned. Credit history is established when loan payments are reported to the major credit bureaus. The customer will then qualify for more traditional loans and credit cards.
How do I qualify?
To qualify for this type of loan, you must be at least 18 years of age. You also must have a debit card or bank account to make loan payments. As mentioned above, these businesses don’t check credit scores. However, it is still necessary for them to verify the borrower’s identity and to screen for fraud.
Is there a downside?
Building both your credit score and beginning to put back money for emergencies are both important steps to making your future more secure. Credit-builder loans allow you to kill two birds with one stone, so to speak. However, a word of caution: don’t pay late. Late payments will not only incur fees but may also be reported to the credit bureaus. You’ll still establish a credit history, but not the kind you want.
Looking to buy a new home? Need help with mortgage related services?
Once your credit score is in order, finding the right loan to back your mortgage can still be an intimidating process. Allow Stonebridge Mortgage Group to help.
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 can help you get pre-approved for a mortgage, walk you through the real estate loan process, and assist you with mortgage solutions, both residential and commercial. Stonebridge Mortgage Group serves the greater Portland area and are located in Gresham, Oregon. Why wait to buy your new home?
David is so professional and accommodating. I appreciate his level of professionalism and willingness to help.
We have chosen Stonebridge a couple times now, and they are always a pleasure to do business with.
David with Stonebridge has helped me on multiple occasions, between financing a new home as well as a couple of refi's over the years. I cannot stress how communicative he is when it comes to keeping his clients in the loop. Even when there was a slight lull during my most recent refi I would receive an email just letting me know that nothing new had transpired yet so I never had to question what was going on.
I have worked in the Real Estate field for almost three decades and David is by far the most responsive and professional mortgage Broker that I have dealt with.
If you need help purchasing a new property or help with a refi you can't go wrong by hiring Stonebridge!
Refinancing our home through Stonebridge Mortgage was a great experience. They locked in a great rate, laid out each step along the way, and provided regular updates throughout the process. It couldn't have gone more smoothly and now we are saving $300/mo! Thank you Stonebridge Mortgage!
David is very easy to work with and makes the entire process very simple. I have used Stonebridge for initial purchase and refinance and it only gets better. Get the straight answer quickly from Stonebridge
I've had nothing short of an amazing experience working with Stonebridge. I bought my first home over 2 years ago and without their help I may still be living in an RV. I intended to refinance my home later this year and I will most definitely be working with Stonebridge. I highly recommend. PS, I was qualified at the time with a credit score of 640
David was wonderful to work with. He was highly recommended to me by my partner who had worked with David a few years ago.
The day I contacted David he immediately put everything in motion
to assist me in refinancing with a much better interest rate.
We were able to handle everything by email /phone and Fax. He
responded quickly to questions I had. And let me know immediately
if something needed to be done or changed.
I would definitely work with David in the future if the need arises. The process went smoother than any other time I have worked with mortgage
David was an absolute pleasure to work with! He was consistently responsive, on top of every detail and always so upbeat and funny! (An added perk that I truly appreciated during the stressful process of selling AND buying at the same time!) I will be recommending him to everyone I know!
David was a good man to do business would
do business again