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
April 16, 2025There are smart uses for cash-out refinancing loan proceeds and uses for that money that may work against the borrower. We examine some of those choices below, starting with using an FHA cash-out refinance for investment purposes. Is this a good idea?
April 15, 2025House hunters sometimes face a curveball when the appraisal for a home they want to buy with an FHA mortgage is lower than the offer. Is this a deal-breaker? Believe it or not, it isn't the end of the road. A low appraisal can sometimes be just a bump in the road. In other cases, you may wish to walk away from the deal. Here's your game plan to navigate this situation...
April 14, 2025 Buying a home with an FHA loan can be an exciting and achievable goal. This quick quiz helps you gauge your understanding of FHA loans and what it takes to make a winning offer on your new dream home. Take a few moments to answer the questions and see how prepared you are to navigate this crucial stage of your home-buying journey.
March 31, 2025Is 2025 the right year for you to consider an FHA streamline refinance? These mortgages are for those who want a lower interest rate, a lower monthly payment, or to move out of an adjustable-rate mortgage and into a fixed-rate loan. We examine some of the critical features of FHA streamline refinances.
March 27, 2025Did you know there are FHA loans that let house hunters buy multi-family properties such as duplexes and triplexes? FHA rules for these transactions is found in HUD 4000.1, including owner-occupancy, require that one unit serve as the borrower’s primary residence. Some house hunters ask why this rule exists. Some believe the rule serves as a lender risk mitigation strategy.
