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.
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FHA Loan Articles
September 8, 2023Borrowers considering an FHA loan should be familiar with some basic loan terminology. These loans are popular among first-time homebuyers and those with lower credit scores because they often offer more flexible eligibility requirements and lower down payment options.
September 2, 2023You may have heard the terms co-borrower and cosigner in connection with your FHA loan process, but aren't sure about the distinction. Both a co-borrower and a cosigner can help a primary borrower qualify for a mortgage, but they have different roles and responsibilities.
August 27, 2023The Federal Housing Administration has specific credit requirements and guidelines for borrowers looking to buy or refinance homes with an FHA loan. In addition to what FHA guidelines state, lenders may have more stringent requirements that may vary from one lender to another.
August 23, 2023Mortgage APR (Annual Percentage Rate) and a loan's interest rate are two different things, although they are closely related. Understanding the difference is an important part of a borrower's analysis of the true cost of their mortgage.
August 19, 2023FHA refinance loans allow homeowners with existing FHA loans to refinance their mortgages. These loans are designed to help borrowers take advantage of lower interest rates, reduce their monthly mortgage payments, or access equity in their homes for various purposes.
