Portland Mortgages – Information For Those Moving to Oregon
At last, you have made the decision to become an Oregon homeowner. Buying a home is a very exciting time in one’s life but, even before choosing a place to call home it is important to obtain a mortgage. Obtaining a mortgage in Portland is much the same as applying for a home loan anywhere else. For those new to the process, there are a few things to keep in mind to assure the process runs as smooth as possible.
Before applying for a mortgage it is wise that you are aware of your credit score. Obtain a copy of your credit report to view if you have any negative inquires that need to be addressed prior to applying for a home loan. The better your credit rating, the better financing options you will receive. It is important to know exactly what you can afford while still being able to maintain a comfortable lifestyle. After all, nobody wants to finance a home and not be able to afford it later.
Once you are aware of what you can afford, you can apply for a home mortgage. You can either apply online through different lenders or choose to go through a mortgage broker. Submit to several different lenders to see who can offer you the best financing options. Ask that they hold on running a credit check until you have chosen the lender or broker that works best for you. Having too many inquires on your credit report will lower your credit score. When applying for a home mortgage make sure you use accurate personal and financial information. Even the smallest of errors can delay your approval process. You will be asked to provide employment and income verification. Usually you are asked to show 2 months of recent pay slips and 2 years of income tax documents. Also provide information on any assets, other properties owned, and explanations on any debts you may have.
When applying for a mortgage be aware that in addition to private lenders there are several different government loan programs available. In the state of Oregon you can apply for a VA, FHA, or rural housing loan. You can choose a fixed rate mortgage which means your monthly payment amount and interest rate is locked in for the lifetime of the loan. Adjustable rate mortgages have a variable rate which means your payment amount and interest rate will adjust with the market. An Interest only mortgage means that you will make payments for a fixed number of years towards only the interest on your loan. After that your payment will increase and you will begin to pay towards the principle amount owed on your loan. Usually these types of loans are only good if you are planning on living somewhere for only a few years. Oregon also offers the Extra Credit Teacher Home Purchase Program for teachers and educators. This is a down payment assistance loan with forgivable interest. If you qualified for a large mortgage you are also guaranteed a fixed rate loan through Oregon’s Civil Code Provision of Real Estate Act which regulates variable rate mortgages.
Oregon also offers loans comparable to FHA loans that assist the disabled and caregivers of a person with disabilities.
As exciting as buying a new home is, be cautious and always research what is available to you. Applying for a mortgage can be a very scary process if you go into it with unrealistic expectations. Choose a reputable lender or broker, provide accurate information, and be realistic about what you can afford. For more information you can contact the Oregon Housing Finance Agency.