July 17, 2015
There are many things you can do before and during your house hunting process to make buying your new home much easier. Do you know what home buyer resources are available in your state? Have you compared lenders both online and at the branch? Are you considering FHA loan pre-approval?
Getting pre-approved is a very good step. It helps you establish a relationship with a participating FHA lender, and gives you a much better idea of what kind of price range and other factors you might need to consider when house hunting. Pre-approval forms will ask you those difficult questions–“How much do you want to spend on your home?” and “What size home do you need?”
The pre approval question also forces many borrowers to think about their house needs beyond the short-term. Do you anticipate buying your home alone? With a spouse? Are children involved or could children be a factor at some point later down the line?
Those questions involve basic space concerns, number of bedrooms, yard size and other factors. You might be surprised at how many people don’t consider future growth–family and income–when planning for a new home loan.
Pre-approval is a great way to kickstart that thinking process. Naturally before you get pre-approved you will need to research the participating lenders in your area and online. There are mortgage brokers and direct lenders, and the choice you make in this area may boil down more to personal preference; borrowers who have difficulty deciding on a lender should carefully examine each one for the best interest rates, terms, and overall customer-friendliness.
When it comes to local home buying programs, you can go to the FHA/HUD official site for help getting started on your research. There is a page that breaks down local programs by state athttp://portal.hud.gov/hudportal/HUD?src=/topics/rental_assistance/local. Any help from a state or local agency can be a major boost for many borrowers–know what your options might be in your area.
You can also get help with a HUD approved pre-purchase counselor. Contact the FHA/HUD for a referral to one in your area by calling them at 1-800 CALL FHA or you can visit the FHA/HUD official site for more information.
Do you have questions about FHA loans? Ask us in the comments section, and don’t forget that all comments are held for moderation before appearing on the site.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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