Financial Fitness Bootcamp with Victor H. Rodriguez, Sr.

Building financial fitness is a lot like staying in shape- it takes knowledge, discipline, and a good coach in your corner. At Greenfield Cooperative Bank, Vice President and Community Engagement Mortgage Officer, Victor H. Rodriguez, Sr., is here to guide you through some of the most common finance questions in the homebuying process.

Q: What if I have debt?

Victor: Manage debt responsibly. Limit credit card utilization. If you must use a credit card, make certain not to carry more than 30% of the credit extended to you. Prepare a budget and stick to it. Purchasing a home is fun and exciting, yet it’s a serious step – approach it sensibly.

Q: How much money do I need to buy a house?

Victor: The common reply is 20% down but that is no longer the case, especially for first time homebuyers. Sit down with your mortgage loan officer and ask what First-Time Homebuyer programs they offer and what the requirements are. Many programs may require just 3% to 3.50% for down payment! On a $300,000 home, with 3% down payment, that would be $9,000. However, there are also closing costs which range depending on several factors such as annual property taxes, annual homeowners’ insurance premiums and more. This is why one should never assume 3% to 5% of the loan amount; that’s not accurate. As mentioned prior, sit with your mortgage loan officer, get the facts and approach the goal of homeownership strategically.

Q: How do I obtain my credit score?

Victor: There are many online resources that assist with the monitoring of your credit, learning what your credit score may be as well as tips on how to strengthen your credit performance. Some of those resources include but are not limited to Experian.com, Transunion.com and Equifax.com . Many (if not all) financial institutions now have a mobile app where the consumer can not only monitor their deposit accounts and block their debit cards, but also gauge their credit performance and credit scores. At Greenfield Cooperative Bank, you can access Credit Score by SavvyMoney to get daily access to your credit score, real-time credit monitoring alerts, special credit offers, and more! 

Q: I don’t have any credit. How can I start building it?

Victor: I always suggest looking into your financial institution and inquiring if they offer Savings-secured credit cards and/or loans. Many lenders offer this as a tool to build credit. At Greenfield Cooperative Bank, we offer Savings-secured loans which is a great way to establish credit. Your credit limit or loan amount will depend on the minimum amount the lender requires for their specific program. Over the years I have seen $300 for savings-secured credit cards and a minimum of $500 to $700 on a savings-secured personal loan. As you make your monthly payments, your payment history is reported to the credit bureaus, hence, creating a payment history. 

Q: What’s the difference between a pre-qualification and a pre-approval for a mortgage?

Victor: For the most part, a mortgage pre-qualification is a preliminary view on potential purchase power that’s formulated by verbal information communicated by the consumer to the lender. Nothing is verified. There may (or may not) be a credit pull involved. Some lenders will pull credit from only 1 of the 3 bureaus. Make certain you ask.

A pre-approval is a more thought out, detail oriented process that involves the verification of income (pension award letters, SSA award letters, pay stubs, W2’s, etc.), assets (two months’ bank statements) and something called a, “tri-merge” credit pull, which basically translates into the lender pulling your credit scores form all three bureaus (Experian, Equifax & Transunion).

Once all the prior information is obtained, your lender may send the pre-approval request to an underwriter for review- which is a good thing. You want as much of your request reviewed as possible so when you’re issued the pre-approval letter, you’re confident as a buyer.

The Bottom Line

Financial fitness starts with asking the right questions, and Victor H. Rodriguez, Sr. and the rest of our lending team are here to help. Whether you’re managing debt, building credit, or requesting a pre-approval, reach out to our lending team and start your journey with confidence.

Learn more about the financial education tools available at Greenfield Cooperative Bank here!

Victor H. Rodriguez Sr. – NMLS# 523353