Buying a home is one of the most exciting — and financially significant — decisions you’ll ever make. For most people in the Pacific Northwest, that means taking out a mortgage. But before you start house hunting in Oregon, Washington, or Idaho, it’s important to know how lenders evaluate you and what costs to expect. Here are five key things every local homebuyer should understand before getting a mortgage.

1. Your Credit Score Can Save (or Cost) You Thousands

Your credit score is one of the first things lenders check when you apply for a mortgage. A higher score typically means lower interest rates — which can save you tens of thousands of dollars over the life of your loan. Most conventional lenders require at least a 620 credit score, but a score of 740+ puts you in the best position for competitive rates. If you’re below that range, work on paying down debt and making on-time payments for at least six months before applying.

Local insight: In competitive housing markets like Portland, Seattle, and Boise, a strong credit score can also make you more appealing to sellers when multiple offers are on the table.

2. Not All Mortgages Are the Same

There are several loan types, and the right one depends on your financial situation, your long-term plans, and your location. Fixed-rate mortgages provide payment stability, while adjustable-rate mortgages (ARMs) can start lower but rise later — useful for short-term stays. Government-backed options such as FHA, VA, and USDA loans are widely available across the Northwest. For instance, USDA loans can be ideal for buyers in rural parts of Oregon, Washington, and Idaho.

3. Down Payment Requirements Aren’t Always 20%

Contrary to popular belief, you don’t always need to put 20% down. Many lenders accept down payments as low as 3–5%. For eligible buyers, VA and USDA loans may require no down payment at all. If you put less than 20% down, expect private mortgage insurance (PMI), which adds a small monthly cost until you’ve built enough equity.

4. Closing Costs Are Real — Budget for Them

Beyond your down payment, closing costs can add 2–5% of your loan amount. These include appraisal fees, title insurance, escrow charges, and lender processing fees. In Oregon, Washington, and Idaho, average closing costs range between $3,000 and $6,000. Some costs are negotiable, and in certain markets, sellers may contribute toward your closing expenses.

5. Your Debt-to-Income Ratio (DTI) Matters

Lenders calculate your DTI ratio to see how much of your income goes toward debts. A DTI below 43% is preferred, but aiming for under 36% gives you the strongest approval odds. Keeping credit card balances low and avoiding new debt before applying can make a big difference in your mortgage terms.

A lot of people think keeping a small balance on your credit card helps your credit score. Sounds responsible, right? But it’s actually a myth. Here’s what really keeps your credit score strong — and how it ties into your homebuying power.

1. Payment History is King

Always pay on time. Even one missed payment can drop your score by 60–100 points. Payment history makes up 35% of your credit score, so consistent on-time payments are the most powerful way to improve or maintain strong credit.

2. Keep Your Utilization Low

Credit utilization — how much of your available credit you use — accounts for another 30% of your score. Keep balances under 30% of your total limit, or even better, under 10%. Paying off your card in full each month shows lenders you manage credit responsibly and reduces the risk of interest accumulation.

3. Use Your Credit Strategically

Use your card for regular, budgeted purchases like groceries, gas, or subscriptions — things you’d pay for anyway. Avoid using it for impulse buys or big-ticket items you can’t pay off quickly. Responsible usage creates a healthy credit pattern without racking up unnecessary debt.

4. Mortgage Market Snapshot (Pacific Northwest – October 2025)

Mortgage rates in the Pacific Northwest have held relatively steady this week, with small downward adjustments as inflation reports improve. Here’s the latest:

• 30-Year Fixed: 6.55% – 6.85%
• 15-Year Fixed: 5.95% – 6.25%
• FHA Loans: ~6.1%
• VA Loans: ~6.0%

5. Real Estate Market Updates by State

Oregon: Portland-area listings are still tight, but sellers are starting to offer credits for closing costs as competition cools slightly. Bend remains a hot spot for remote professionals.

Washington: Seattle’s suburban markets are stabilizing with modest price corrections, while Spokane continues to see steady buyer activity fueled by affordability compared to coastal cities.

Idaho: Boise’s inventory has improved slightly, and price growth has slowed after several years of rapid appreciation. Buyers now have more leverage in negotiations.

Refinancing your mortgage can be a smart financial move — but timing is everything. Whether you’re aiming to lower your monthly payment, pay off your home faster, or tap into equity, knowing when to refinance can save you thousands. Here are five clear signs it might be time to make your move.

1. Your Interest Rate is Higher Than Today’s Market

If your current mortgage rate is at least 1% higher than what’s available now, refinancing could significantly reduce your monthly payment. For example, dropping from 7% to 6% on a $400,000 loan can save around $250 per month — that’s $3,000 a year! Lower rates mean more breathing room in your budget.

2. Your Credit Score Has Improved

Maybe your financial habits have strengthened since you first bought your home — paying bills on time, reducing debt, or increasing income. If your credit score has jumped, you might now qualify for a much better rate. Lenders often reward scores above 740 with the most competitive terms.

3. You Want to Shorten Your Loan Term

If your income has grown or your budget has stabilized, refinancing from a 30-year to a 15-year mortgage can help you pay off your home sooner and build equity faster. Even if your monthly payment rises slightly, you could save tens of thousands in interest over the life of your loan.

4. You Need to Access Your Home Equity

Have big expenses coming up — like home improvements, education costs, or consolidating high-interest debt? A cash-out refinance lets you borrow against your home’s built-up value. Homeowners in the Pacific Northwest who bought before 2021 may have gained significant equity due to rising property values in areas like Portland, Seattle, and Boise.

5. You’re Paying for Private Mortgage Insurance (PMI)

If your home’s value has increased and you now have at least 20% equity, refinancing could eliminate PMI and free up $150–$300 per month. It’s one of the easiest ways to put money back in your pocket while keeping your mortgage terms competitive.

Many potential homebuyers wonder if the winter season is a good time to purchase a home. While snow, rain, and chilly temperatures might make house hunting less appealing, there are several advantages to buying during the colder months.

1. Less Competition

Fewer buyers are searching for homes in winter, which can reduce bidding wars and increase your negotiating power. Sellers who keep their homes on the market during winter are often motivated to close quickly.

2. Potentially Lower Prices

Homes that sit on the market during winter may be priced more competitively. Sellers often offer discounts, credits, or other incentives to attract buyers during slower months.

3. Faster Closing Process

Lenders and title companies may have lighter workloads during winter, which can lead to faster approvals and smoother closings.

4. Realistic View of the Property

Winter lets you see a home’s condition in harsher weather. You can check insulation, heating systems, and how the property handles rain or snow — important factors in the Pacific Northwest.

VA loans are a special mortgage benefit available to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. They offer unique advantages compared to conventional loans.

1. No Down Payment Requirement

Qualified borrowers may purchase a home with 0% down payment. This makes homeownership more accessible for veterans who may not have significant savings.

2. Competitive Interest Rates

VA loans often come with lower interest rates than conventional mortgages, which can save borrowers thousands over the life of the loan.

3. No Private Mortgage Insurance (PMI)

Unlike other low-down-payment loans, VA loans do not require PMI, reducing your monthly payments and overall cost.

4. Flexible Credit Requirements

VA loans tend to have more flexible credit standards, making it easier for qualified veterans to secure a loan.

5. Eligibility Requirements

To be eligible for a VA loan, you typically must meet one or more of the following criteria:

• Served 90 consecutive days of active service during wartime
• Served 181 days of active service during peacetime
• Served 6 years in the National Guard or Reserves
• Spouse of a service member who died in the line of duty or as a result of service-related disability