You’re excited about searching Portland Oregon Homes For Sale and eventually buying your first home, but before you start your home search have you sat down with your spouse or partner and asked yourselves if you’re really ready to buy a home?
In the last 10 years we’ve seen many people make the mistake of buying Portland Oregon Real Estate who were not really ready to buy homes and they eventually ended up missing one or more mortgage payments.
How Missing One Mortgage Payment Affects Your Credit
Since your payment history makes up 35% of your credit score and the amount of money you owe makes up another 30% of your credit score it’s easy to see how missing one payment can hurt your credit score. It’s a large part of your credit score, especially considering that a mortgage loan will most likely be the biggest loan you will have in your life.
Back in 2011, FICO released data that showed the real damage missed payments can do to a credit score. They found that if someone with a credit score of 780 misses one payment they could see a drop in their credit scores of close to 100 points.
Another important point to consider is that if a person who has a 780 credit score was 90 days late paying their mortgage it would take those 7 years to get back to their excellent credit score.
The Road Back To a Good Credit Score
What’s even more shocking is that the FICO data confirmed that the individual who had a 780 credit score and experienced a 100 point drop in their score would have to work hard and wait up to 3 years to get their credit score back to what it once was.
For someone who has a credit score of 680 and missed one mortgage payment it would take them only 9 months to get their credit score back to where it was before they missed that one payment.
What Does The Word Late Really Mean?
In the mortgage payment world most lenders will give you a 15-day grace period to get your mortgage paid on time and you may even have 30 days to get your mortgage payment paid before it’s reported to your credit. Usually a late fee will apply. However, if you pay your mortgage after 30 days then it will be officially considered to be late.
Every lender notifies the credit bureaus when a borrower is 30/60/90 days late and each time you’re late making your mortgage payment your lender will notify the credit bureaus.
Search for Portland Oregon Homes for Sale
To get started with searching for Portland Homes for Sale, or to view Portland Oregon Real Estate, contact EquityPoint Real Estate today by calling us at (503) 595-8800 or connect with us online.