If you are considering a home purchase in Eugene in the near future, you will want to have an experienced Eugene mortgage company on your side to help you get the right home loan, since a mortgage is typically a requirement for those seeking to buy a home in this popular city.
Here’s what you need to know about Eugene in general, what the real estate market is like right now, and how to find the best mortgage company to partner with.
Why Buy a Home in Eugene, Oregon?
Located on the Willamette River, Eugene is a great city in Oregon that is considered one of the best cities in the state to live. Known for its amazing outdoor life and art scene, Eugene is filled with green spaces, gardens, trails, quaint cafes, and locally-owned stores. Home prices have increased at a healthy rate over the past year, allowing those who already own property in the city to build equity in a short period of time
Overview of the Eugene Real Estate Market
Eugene’s housing market is considered competitive right now, according to real estate research firm Zillow. Eugene’s median home value now stands at approximately $454,309, as of January 2024. That’s less than the current average statewide of $479,906, making it a fairly affordable place to live in Oregon. It’s also much lower than nearby Portland’s average home price of $515,001, while still being within close proximity of the state’s largest city.
Considering the average home price in Eugene, a 10% down payment would equate to more than $45,430. Buyers can also make larger or smaller down payments, as long as their budget and the mortgage program they apply for allow it.
For instance, a 3.5% down payment – which is the minimum required for an FHA loan – would come to just over $15,900, while a 20% down payment – which is required for a conventional mortgage without mortgage insurance – would come to just over $90,861.
The down payment amount you put forth will not only depend on what you can afford and the mortgage product you choose, but also the Eugene mortgage company that you work with. For this reason, you should take the time to research mortgage companies in Eugene to make sure you choose the right one to work with.
Choosing a Eugene Mortgage Company
The question is, how do you go about finding the best Eugene mortgage company? Here are a few tips to consider.
Tip #1: Ask People You Know
One of the best ways to find a Eugene mortgage company is to ask around among people in your social circle. This can include friends, family, people at work, or acquaintances. Odds are, someone in your network will have recently used a mortgage company, or may know of someone who has.
When asking for references and recommendations, ask things such as how quickly the company was able to get them the mortgage they required, what the lines of communication were like, and the types of mortgage products they have to offer. The more information you can obtain, the more you will have to go on when deciding who to work with.
Tip #2: Check Out Each Company’s Reputation
The overwhelming majority of Eugene mortgage companies are credible, but there are always some stragglers out there that you will want to avoid. You should still make sure that the mortgage company you choose has the licensing and qualifications needed to offer mortgages in the state of Oregon.
Not only can you ask the company directly, but you can also check out a few resources to help, such as the Nationwide Multi-state Licensing System Registry, or the Better Business Bureau (BBB).
Tip #3: Ask Important Questions
The more detailed questions you can ask the mortgage company in Eugene, the better. Here are a few to help you get started:
- What kind of mortgage programs do you offer?
- What interest rate can I secure?
- What other fees must I pay?
- How much of a down payment amount do I require?
- Are any down payment assistance programs available?
- What are the closing costs?
- What are the mortgage terms?
- Are mortgages originated in-house?
The answers you get paint a clear picture of what it will be like to work with the mortgage company in question.
Tip #4: Compare Interest Rates
The interest rate that you are given will have a direct impact on the overall cost of your mortgage, so the lower the rate, the better. When shopping around for a mortgage company in Eugene, compare interest rates among them, which can easily be done with a quick internet search. Just be sure to weigh these rates with any other fees that are being charged, as extra fees can sometimes offset lower rates.
Tip #5: Improve Your Credit Score
To increase your odds of getting approved for a mortgage and securing the lowest interest rate possible, you’ll want to go into the game with a healthy credit score. A good score will make the entire process a lot easier for you, so it’s advised that you ensure that your credit profile is where it should be prior to applying for a mortgage with a Eugene mortgage company.
Pull your credit report and take a look at where your score is currently at and what factors are affecting it. If it’s lower than it could be, consider taking steps to improve it before applying for a mortgage. You can do this by taking any of the following measures:
- Have mistakes on your credit report corrected
- Pay your bills on time
- Don’t apply for new credit or loans
- Spend less than 30% of your credit card limit
- Pay more than your credit card’s minimum balance
- Keep old credit accounts open
Loan Limits: Do You Know What They Are?
Buyers should know about loan limits, which are dollar caps placed on home loans. For conforming loans, loan limits are caps that are placed on loans that Freddie Mac and Fannie Mae will purchase or guarantee. For FHA loans, loan limits are dollar caps on loans that the FHA backs.
VA loan limits have been eliminated since 2020. But some borrowers may still be subject to them if they currently have a couple of VA loans or have defaulted previously.
Loan limits are assigned to every county in the country and usually increase at the start of every year to reflect the growth in home prices. Mortgages over these loan limit amounts are typically referred to as jumbo home loans.
Check out our mortgage loan limit tool for conventional, FHA, and VA loans.
Get More Info on Eugene Mortgages
There’s so much to know about mortgages in Eugene, OR, and the mortgage companies that offer them. At Sammamish Mortgage, we can provide you with all the information required about home loans without the need to do any leg work yourself. We’ve been helping borrowers all over Washington, Idaho, Colorado, and Oregon apply for mortgages since 1992, and we’d love to help you too. We offer plenty of mortgage programs with flexible qualification criteria, and we would love to speak to you about how we can help. Contact us today to get the info you need about home loans needed to buy a home in Eugene!