March 13, 2015
Are you ready for an FHA home loan application? If you’ve been considering your options, it’s a very good idea to create a list of to-do items in the preparation time leading up to your application.
The first thing to do is to make sure you’re ready for your loan by checking your credit reports and FICO scores. Your repayment history and FICO score play a big part in whether you get approved or denied for the loan. Hand in hand with those factors is the amount of debt you have getting paid every month versus how much income you have. Reducing the amount of debt–especially credit cards and related types of debt–can help your application’s chances.
Some borrowers don’t think about saving up for their home loan beyond making the required down payment, but are you prepared for the costs associated with your home loan such as appraisal fees, credit report fees and other expenses? Saving up for these costs is an important part of your loan preparation.
Do you know the lenders in your housing market? Who currently (or historically) has offered the best rates and terms? Knowing your lenders in advance of your house hunting activities can be another big help in the home buying process.
Do you know what’s been happening to house prices in the areas where you’re thinking about buying? Are those prices on the rise, or on the decline? Why? Those are also important questions to answer in the prep time leading up to your loan.
There are also real-estate related things you can do to prepare for buying a home such as researching the types of neighborhoods you want to live in and what services and features might be associated with those areas.
Addressing these issues will go a long way toward helping you be as prepared as possible for your FHA loan application.
Do you have questions about FHA home loans? Ask us in the comments section. All comments/questions are held for review 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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