FHA mortgages aren't as hard and intimidating as so many have mentioned in the past. Buying your first home, a second home, or even your third home can be intense.
If you are a renter, your first step is to see which is better, to rent or own? Just remember, FHA mortgages are not just for first time homebuyers. Please read : FHA mortgages, how many can you have?
Below you will find a compilation of sequences that you should read prior to applying for a mortgage.
Before you start shopping for a mortgage, you should understand and know your credit.
After you have an idea what your credit is like and that you understand how credit works, you should start to shop for a lender. This can be a very trying time during the process when purchasing your new home. It's always recommended to seek referrals from your friends and family. Below are some more blogs giving you examples of what to look for when shopping.
As you search for a lender, you will always want to see a copy of a good faith estimate. Watch out for such terms as "I promise", "no problem", and "I can guarantee". If a loan officer takes more than 24 hours or keeps promising you a GFE (good faith estimate) and you still haven't received one, this could be a red flag. Don't let the lender fool you into believing that anything that is mentioned below is not important.
One thing to remember is how much money you have to work with. There are certain ways to get into a house with little or no money out of pocket. But keep in mind, you always want to have $3,000 left over so you not only have money to help move, but just in case some house emergencies take place in the first 6 months of moving in.
- FHA Gift of Equity Loans You can get 100% of your down payment & closing costs from a family member.
As you shop for a mortgage, you want to make sure that you have a good idea to where you want to live. Certain areas could have higher property taxes and having a good realtor to help you with is very important. Don't float from realtor to realtor. Pick one that you feel comfortable with and stay with them throughout the process. When you do find a house and an offer has been excepted, you might think about getting a home inspection. Please read why below.
If you think you might not qualify with your own income, please read below. There are a few ways to use someone else's income. Or possibly to reduce your monthly output in regards to your mortgage payment.
Once you already have found a lender, the biggest thing that you want to talk about is your settlement date and your percentage rate. You want to find out how you can go about locking in your rate. When you are shopping for a mortgage, you want to ask about this also, but you usually don't get a straight answer.
Keep in mind, if you find a home that needs major repairs, there is special type of financing that can help you with this. Also, if you know anything about ECO--friendly environments that could save you thousands per year, there is a program for this when financing your home also.
Here are some reminders for when you are at settlement, when closing on your new home. And if you have anything negative happen to you or if you have any complaints, please read the second post.
Summary : Everything that you will read here is knowledge that I have compiled because of 15 years in the mortgage industry. Some of these were written with my opinion, but with my best intentions in giving you the best advice in order to succeed when purchasing your new home. Take your time when reading these posts and no question is always a bad question. Never hesitate to ask a question anytime. I am always available to help you in anyway that I can. BEST OF LUCK!!!
The First Time Homebuyer Series :
- First Time Homebuyer Tips : FHA, is the best mortgage program? -- Best Programs & Why -- Part 3 of 4
Buying Tips & things to know :
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For more information on FHA loans, please go to this link. The FHA Expert You can also go to this group : The FHA Mortgage Group
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
Copyright © 2007 by Jeff Belonger
Jeff,
Very informative post...thanks for bringing this information together so it could be bookmarked.
Jeff,
These are all Great Liks! I am always looking forward to your Posts.. Keep it going :0)
ROBERTA.....thanks for the compliment, I hope it becomes useful.
JULIE...... it's funny, I think a post like this won't take long and it actually takes me forever. Thanks.
PHILIP...... nah, I am sure that there are a few more around. But because of FHA, it has kept me in business. I was able to save some deals that other lenders said were approved that never made it to the settlement table....that I took FHA. And it sounds like you have about 12 years over me. Thanks for the comments.
MATT.... this is very true. FHA can be for good credit, but you usually can go conventional. But you can go up to 95% cash-out with no hits to points or rate. But it has to be decent credit with scores above 600 usually....
TOM W. .... thanks for the kind words and for stopping by.
Jeff,
I have bee on AR for a while but just recently started viewing daily and I must say I find myself looking forward to your Posts daily now. Keep it up.
Jeff: I thought this post was exceptional and I flagged it and sent it to AR with my endorsement to feature it. What explaination of the mortage process. And getting a GFE in 24 HOURS, can many say they received a GFE in such a quick response? Not many. Great Post.