March 1, 2013
If you’re thinking about buying a home with an FHA guaranteed mortgage, now is a very good time to explore your options. Mortgage loan rates may have risen slightly from their “all-time lows” of the past 12 months, rates are still very good, and the housing market recovery makes purchasing a home more attractive than ever.
What kind of advice does the FHA official site offer to house hunters thinking about that first FHA home loan application?
There first thing to ask is whether you are ready to commit to buying a home now, or if you need to take some additional preparation time. How do you know if you’re ready to commit? According to the FHA,
“You can find out by asking yourself some questions:
– Do I have a steady source of income (usually a job)? Have I been employed on a regular basis for the last 2-3 years? Is my current income reliable?
– Do I have a good record of paying my bills?
– Do I have few outstanding long-term debts, like car payments?
– Do I have money saved for a down payment?
– Do I have the ability to pay a mortgage every month, plus additional costs?
If you can answer “yes” to these questions, you are probably ready to buy your own home.”
That’s excellent advice. Many financial planners and real estate professionals recommend saving and budgeting for at least a year before committing to the purchase of a new home. Once you are ready, what does the FHA say to borrowers ready to explore the home buying process?
“Start by thinking about your situation. Are you ready to buy a home? How much can you afford in a monthly mortgage payment (see Question 4 for help)? How much space do you need? What areas of town do you like? After you answer these questions, make a ‘To Do’ list and start doing casual research. Talk to friends and family, drive through neighborhoods, and look in the ‘Homes’ section of the newspaper.”
Some like to search for the home themselves, others want the help of a real estate agent. You can find a reliable agent through referrals from friends or family, but you can also screen your own agent simply by talking with several of them and choosing the one you feel is the most trustworthy.
Once you’re ready to purchase a home, you can prequalify for an FHA home loan and get ready to take the step into home ownership. If you need extra help with financial issues or other aspects of buying a home, you can always contact the FHA and ask for a referral to an FHA approved housing counselor in your area. Call 1-800 CALL FHA to get such a referral started.
Do you have questions about FHA mortgages? Ask us in the comments section.
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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