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!