Articles Published in: April 2023

April 12, 2023

Preparing For Your FHA Home Loan Application

Do you want to buy a house with an FHA mortgage loan? Don’t forget some important steps to take long before you fill out an application (see below.) Some borrowers don’t realize the planning stage for a home loan can be lengthy; you’ll need to save money for expenses above and beyond your down payment. And you’ll also need to work on your credit before applying for the mortgage. Borrowers should not consider applying for a home loan until they know three basic things-their FICO scores, how much down payment might be required on the home, and how much loan the borrower can afford. FICO Scores: A Great Place To Start The FICO score issue is the first one to tackle. Your lender won’t be able to work with you | more...

April 10, 2023

Buying A Home With A Lower Credit Score

By Bruce Reichstein

What can you do if you know your credit isn’t perfect but need to buy a home with an FHA mortgage? Actively Work On Your Credit The most effective way to change your credit rating and improve it is also the simplest. Make all payments on time for at least one year before your home loan application. This is the first step toward getting yourself ready to be approved for a mortgage loan. Review Your Credit Report If you don’t know what your credit report says, you are not ready for a home loan. It really is as simple as that. Learn How To Understand Your Credit Report A credit report is essentially a record of how you deal with your financial obligations. One of the leading credit reporting agencies, | more...

April 7, 2023

Not-So-Hidden Costs Of Your FHA Loan To Save For

By Joe Wallace

It’s easy to miss an important detail or two when planning and saving up to buy a home. Some obvious expenses include your down payment, FHA loan lender’s fee, property taxes, and escrow. But some things sneak up on first-time home buyers. You’ll want to be ready for both the cost of the services (see below) and the need to pay for the services themselves. For example, did you know that the appraisal and the home inspection are two totally separate costs? Some do, some don’t, at least not at first. Inspections Fees and Appraisal Fees Lenders and real estate agents tend to use the word “inspection” when they really mean “appraisal.” Remember, an appraisal is NOT a home inspection no matter how often the lender calls it one. And | more...

April 6, 2023

Buying A Home? Questions To Ask

By Joe Wallace

Are you thinking about applying for a mortgage loan? Here are some important questions you should ask yourself before starting a loan application. Preparing for the issues raised below can help you get off to a good start. Have I Saved Enough For Contingencies? There are plenty of costs some borrowers do not anticipate when planning and saving for their FHA mortgage. You should expect title transfer fees, pest inspection costs, and home inspection fees. These are all standard costs associated with buying a home. But there are also fees that are easy to forget about. Will you have to pay any property taxes at closing time? What about compliance inspection that may be needed after appraisal-required corrections are made as a condition of loan approval? How Much Negotiating Can | more...

April 5, 2023

FHA Home Loans: A Variety Of Options

By Joe Wallace

There are many different types of real estate available to purchase or refinance with an FHA single family home loan. Did you know that FHA loans are not limited to traditional suburban-type housing? Your options are as diverse as the kinds of real estate you might consider purchasing. For example, while an existing construction suburban home is definitely an option with FHA loans, you can also consider a new construction home. The difference between new and existing construction can be technical; new construction properties have generally been completed for a year or less and have never had an owner. So while you may not be interested in a “build-to-suit” new construction loan, you may be able to get a new construction loan for a property that is already finished but | more...

April 3, 2023

FHA Home Loan Preparations

By Joe Wallace

When you are preparing for an FHA loan, or an FHA refinance loan, what can you do to get ready? How long should it take you to prepare? These are two important questions to answer long before you complete an application for your loan. Generally, it’s best to start saving and budgeting as early as possible before your loan. FHA-required appraisals cost money, as do compliance inspections, flood insurance, and other expenses. At a minimum, borrowers should begin pulling their credit reports and insuring all payments on all financial obligations are made on time, without fail at least 12 months in advance. Depending on the type of home loan, you may need to get credit or home buyer’s counseling. For FHA Home Equity Conversion Mortgages or HECM loans, counseling is required | more...