July 27, 2023
If you have never purchased a home before, you might be wondering how you can improve the overall experience, get good advice, and make a more informed decision on purchasing a house.
One way to do that is to compare lenders (five is a good number) and ask some important questions of each one.
Ask Your FHA Lender Which Loans Are Most Popular
Some lenders have a lot of interest in some loans and none at all for other FHA loan options. Ask each lender, “What are the most popular mortgages you offer. Why are they so popular?”
If the lender can’t offer the type of loan you need, you will need to move on. Not all lenders offer all FHA loans.
Some lenders won’t issue manufactured home loans, others might not touch One-Time Close construction loans, and others yet may have no demand for FHA condo loans. You’ll need to see what’s available from each financial institution.
How Much Are The Fees?
Ask what the fees and closing costs are. Also ask how negotiable those fees might be at that financial institution.
Does the lender offer a discount for taking homebuyer education courses? Does the lender offer you a price break for being a veteran or an existing client?
You should also ask whether you can set up automatic payments to pay your monthly mortgage bill.
What About Escrow?
FHA borrowers may need an escrow account especially if you’re paying a contractor to repair or construct a home or add energy-efficient improvements to it.
What are the setup fees and other costs associated with escrow? How does that lender handle common issues like increased property taxes or other costs?
Know before you commit.
What’s In Your Mortgage Payment?
Ask your FHA lender what is included in your mortgage payment. It will naturally include principal and interest. but you’ll want to know how property taxes, insurance, and even the potential of having to pay dues for a homeowner’s association may affect your monthly payment.
Asking For Advice Is Key
It is always a good idea to ask the lender what kind of loan might be best for you based on your personal needs, credit history, and related factors.
Your FHA lender may have some important options for you to choose from, especially if you are flexible in the type of property you want (new construction, fixer-upper, condo, manufactured home) and whether it needs renovation or not.
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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