FAQs
What is a mortgage?
A mortgage is a long-term loan used to purchase a home or property. The property serves as collateral while the borrower repays the lender over time, usually over 15 to 30 years.
How does a mortgage work?
A mortgage allows a buyer to purchase a home by borrowing money from a lender and repaying the loan through monthly payments that include principal and interest.
How much house can I afford?
Most lenders prefer total monthly debts to stay between 36% and 43% of your gross monthly income.
What credit score is needed to get a mortgage?
Many conventional loans require a minimum credit score around 620 while FHA loans may allow lower scores depending on qualifications.
What is a good mortgage interest rate?
A good mortgage rate depends on current market conditions and your financial profile. Borrowers with strong credit and larger down payments usually qualify for the lowest rates.
How much down payment do I need?
While 20% down helps avoid mortgage insurance, many buyers qualify for loans with as little as 3% to 3.5% down.
What is the difference between mortgage prequalification and preapproval?
Prequalification is a quick estimate based on information you provide. Preapproval verifies your financial documents and provides a more accurate loan amount.
What documents are required for a mortgage application?
Most lenders require pay stubs, W-2s, tax returns, and bank statements to verify your income and assets.
What types of home loans are available?
Common loan types include Conventional, FHA, VA, and USDA loans.
Should I choose a fixed-rate or adjustable-rate mortgage?
A fixed-rate mortgage keeps the same interest rate for the entire loan term while an adjustable-rate mortgage may change after an initial fixed period.
Should I choose a 15-year or 30-year mortgage?
A 30-year mortgage offers lower monthly payments while a 15-year mortgage allows you to pay off the loan faster and save on interest.
What is an escrow account?
An escrow account is used by the lender to pay property taxes and homeowners insurance using funds included in your monthly mortgage payment.
What are mortgage points?
Mortgage points are upfront fees paid to reduce your interest rate. One point usually equals 1% of the loan amount.
What is Private Mortgage Insurance (PMI)?
PMI is insurance that protects the lender if a borrower defaults on the loan and is typically required when the down payment is less than 20%.
What are closing costs?
Closing costs include fees such as appraisal, title insurance, and loan origination and usually range from 2% to 5% of the loan amount.
What is a mortgage rate lock?
A rate lock guarantees your mortgage interest rate will remain the same during the loan approval process for a specified period.
How long does it take to close on a house?
Most home closings take between 30 and 45 days after the loan application is submitted.
When is my first mortgage payment due?
The first mortgage payment is typically due on the first day of the second month after closing.
When is closing official in Oregon?
A closing becomes official when the deed is recorded with the County Records Office, typically the next business day after signing.
How much are typical closing costs in Oregon?
Buyers in Oregon usually pay between 2% and 5% of the home price in closing costs.
Who pays what in an Oregon closing?
Buyers typically pay loan fees, inspections, and appraisal costs while sellers often pay real estate commissions and owner’s title insurance.
How do Oregon property taxes work at closing?
Oregon property taxes run from July 1 to June 30 and buyers usually prepay several months into escrow at closing.
What is the standard closing timeline in Oregon?
Most Oregon home transactions close within about 30 to 45 days after an offer is accepted.
Can I use a mobile notary for my Oregon closing?
Yes. Oregon allows mobile notaries to conduct loan signings at your home or office if coordinated with the lender and escrow officer.