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
February 12, 2025Choosing between FHA and conventional home loans can be daunting for some first-time home buyers. What are the concerns between these two programs, and what does each one offer the borrower? We examine some of the key issues in our question-and-answer session about FHA mortgages versus conventional loans.
February 11, 2025Established in 1934 as part of the National Housing Act, the FHA's primary mission is to stimulate the housing market by providing mortgage insurance to lenders. This insurance reduces the risk associated with lending to borrowers who may otherwise be considered higher risk, encouraging lenders to offer more favorable terms, such as lower down payments and more flexible credit requirements. A key element of the FHA program is its commitment to fair housing, which is deeply rooted in the Fair Housing Act.
February 10, 2025How much do you really know about the home buying process? One major factor in protecting your new investment is knowing how the title search process works and why you need to have one done. This quiz will assess your comprehension of what a title search entails, why it's so important when using an FHA loan, and how it protects you as a buyer. From identifying potential liens to guaranteeing clear ownership, a title search plays a critical role.
January 30, 2025FHA residential refinance loans, insured by the Federal Housing Administration, allow homeowners to refinance their existing mortgages. They potentially have more flexible qualification requirements than conventional loans. FHA refi loans can lower monthly payments, shorten the loan term, consolidate debt, or even access cash for home improvements or other needs. Understanding the eligibility criteria and different refinance options is crucial for homeowners considering this option.
January 29, 2025Are you about to graduate from college and are already thinking of what your dream home might look like? Understanding the intricacies of the mortgage is an essential step in your journey toward home ownership. Two key terms you'll encounter early on are "FICO score" and "credit history." How do these two things affect your ability to buy a home?
