June 5, 2012
Buying a home for the first time with an FHA guaranteed mortgage can be an intimidating process until you understand how that process works.
Financial experts recommend borrowers prepare at least one year in advance before searching for a home to buy; there are many things which need to be done before an FHA loan applicant should commit to house hunting.
Budgeting, pulling your credit report, learning what expenses you’ll have to pay as part of the loan process…these are all important things to know before you start looking for that first home. Once the search for a new home does begin, there are other issues a borrower should know in advance about what to do when that dream home is located. When you’re ready to commit to a loan application, what then?
One of the most important steps to an FHA home loan is shopping for the loan itself. Some borrowers might be tempted to take the first lender willing to work with them, but shopping around is a very important part of the FHA mortgage loan process.
Borrowers should at least know what competing lenders have to offer–even if they do choose to go with the very first lender they spoke with when the time comes. How do you shop for an FHA mortgage? What terms and conditions should you compare between lenders? The Department of Housing and Urban Development have created a video series on YouTube discussing these issues and more.
Here’s a look at one of those videos, which talks about the issues you should keep in mind when shopping for a participating FHA lender.
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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