Getting Ready for Your FHA Loan Application
June 27, 2023
- Misunderstanding the loan limit:
Homebuyers should be aware of the FHA loan limit for their area and ensure that the home they are interested in purchasing falls within that limit. - Underestimating the cost of mortgage insurance:
FHA loans require mortgage insurance, and this cost can add up over time. Homebuyers should factor in the cost of mortgage insurance when determining their monthly payments. - Not having a solid employment history:
The FHA requires borrowers to have a steady employment history, so homebuyers should ensure that they have a stable job before applying for a loan. - Not repairing credit before applying:
The FHA requires a minimum credit score of 580, and a higher score can result in better loan terms. Homebuyers should take steps to improve their credit before applying for a loan. - Not shopping around for the best interest rate:
Homebuyers should shop around and compare interest rates from multiple lenders to find the best deal. - Ignoring closing costs:
Homebuyers should factor in the cost of closing, including title insurance, appraisal fees, and other costs, when determining their budget. - Not getting pre-approved:
Homebuyers should get pre-approved for a loan before starting the home-buying process. This will help them understand their budget and avoid overspending. - Not working with a real estate agent:
A real estate agent can provide valuable guidance throughout the home-buying process and help homebuyers avoid common mistakes.
------------------------------
RELATED VIDEOS:
Don't Skip the Home Inspection
Bigger is Better With a Jumbo Loan
Insuring Mortgages With the FHA Funding Fee
FHA Loan Articles
November 4, 2023In May 2023, USA Today published some facts and figures about the state of the housing market in America. If you are weighing your options for an FHA mortgage and trying to decide if it’s cheaper to buy or rent, your zip code may have a lot to do with the answers you get.
October 14, 2023FHA loan limits serve as a crucial mechanism to balance financial sustainability, regional variations in housing costs, and the agency's mission to promote homeownership, particularly for those with limited financial resources.
September 25, 2023Mortgage rates are hitting prospective homeowners hard this year and are approaching 8%, a rate that didn't seem very likely last winter. With so many people priced out of the market by the combination of high rates and a dwindling supply of homes.
September 19, 2023The FHA Handbook serves as a crucial resource for mortgage lenders, appraisers, underwriters, and other professionals involved in the origination and servicing of FHA-insured home loans. It outlines the policies and requirements for FHA-insured mortgages.
September 13, 2023FHA rehab loans are a specialized type of mortgage loan offered by the Federal Housing Administration that allows borrowers to finance both the purchase or refinance of a home and the cost of needed repairs.
