Articles Tagged With: First-time Home Buyer

March 29, 2023

Watching Your Credit Before Applying For Your Home Loan

If you are not monitoring your credit ahead of a credit application, especially a big one like an FHA mortgage or FHA refinance loan, you likely are not ready to apply for that credit. You want to know what’s in your credit reports along with your FICO scores, and you need to review the accuracy of your credit report before the lender sees it. Some believe this can be done by pulling annual credit reports. That snapshot of your credit picture isn’t necessarily what your loan officer will be reviewing at loan application time. The lender will see the most current data available to them, and it’s not wise to leave things to chance when applying for a home loan. Credit Monitoring Can Help Credit monitoring is an important tool | more...

Construction Loan Advice For New Borrowers

March 27, 2023

Are You Ready For A Construction Loan in 2023?

By Bruce Reichstein

You can use a One-Time Close construction loan to build a new home on your own land or land you buy in conjunction with the loan. This is a good option to think about if you want a house with designs you’ve approved instead of buying someone else’s house. Getting Your Loan Started Finding a participating FHA or VA lender, depending on the loan you choose is an integral part of the construction loan process. You should also know that construction loan mortgages require higher FICO scores and more time before move-in than a typical home purchase loan. But the end results are worth it. But just as important? Finding the right builder. One-Time Close loans don’t allow the borrower, builder, relatives of the buyer, etc . to act as | more...

March 24, 2023

FHA Loans Compared To Conventional Mortgages

By Bruce Reichstein

If you aren’t sure whether to apply for an FHA loan or a conventional mortgage to purchase or refinance your home, there are some comparisons you can make between FHA and conventional loans. For some, 2023 is a year to make the jump from renting to owning, and if you are thinking about your options, it’s crucial to make informed choices. Don’t pull the trigger on a new loan application without comparing the features of different types of mortgage loans, government-backed and conventional. Even if you decide not to choose an FHA mortgage in the end, making the most informed decision you can is paramount. Down Payments The mortgages with the lowest down payments are USDA loans and VA mortgages, which both feature a zero down option. Some conventional loan | more...

What You Need To Know About Your FHA Home Loan

March 20, 2023

Don’t Buy A House Without A Home Inspection

By Bruce Reichstein

Here’s a common example of a home buyer question that is asked after the purchase of a house with an FHA home loan has closed, the new owners have moved in, and suddenly discover there are serious issues with the property: “I did not get a home inspection when I purchased my house, and now there are problems. Do I have any recourse?” If what is meant by “recourse” involves some form of intervention or relief from the lender or the FHA, the general answer is no–you don’t have any avenues of recourse when buying a home if you choose not to pay for the optional but essential home inspection and choose to rely only on the FHA appraisal instead. An FHA appraisal is NOT a home inspection in spite | more...

March 17, 2023

The Four Keys To Fixing Your Credit Before Your Home Loan

By Joe Wallace

A lot of borrowers want to buy a home but worry that they have credit problems that might keep them from getting their mortgage loan approved. Any borrower worried in this way should do four important things starting about a year away from the day you want to apply for the loan. What are the four keys to credit repair ahead of your home loan? There are two items in the “Do” category and two in the “Don’t” category you should consider doing as early as possible before applying for best results. #1 Credit Repair Hack For Home Loan Applicants The number one credit repair hack any consumer can try begins with knowing the contents of your credit report. It’s that simple, really. And everything else you do going forward | more...

What Credit Score Is Needed For An FHA Mortgage?

March 15, 2023

What Are FHA Home Loan Discount Points?

By Bruce Reichstein

If you don’t know what discount points are, you should explore them as an option to lower your mortgage loan interest rate while still in the planning and saving stages of your FHA mortgage. For new purchase loans, including FHA One-Time Close construction mortgages, FHA Condo loans, or FHA Mobile Home loans, discount points may help you save money upfront on your mortgage over the loan’s lifetime. Discount points aren’t for everyone–some borrowers prioritize reducing their upfront costs and these FHA loan applicants won’t be interested in points. Why? They represent a larger upfront and out-of-pocket expense. But for those who want to pay more upfront so they can save money down the line should consider points. What are these home loan discount points? The financial website Investopedia.com defines them | more...

Can I get an FHA home loan if I owe back taxes?

March 10, 2023

FHA Loan Fact and Fiction

By Joe Wallace

An FHA loan comes with a variety of options, including the types of property you can buy (suburban home, townhome, condo unit, manufactured home, etc.) and the types of mortgage you can apply for such as a 15-year term, 30-year term, fixed rate, adjustable rate mortgage, etc. FHA Loan Fact: Applying For An FHA Mortgage With A Participating Lender There are many participating FHA lenders waiting to help you, and while FHA loans are NOT available from a financial institution that does not participate, the number of those who do is quite high. If you need to refinance a conventional loan and your lender is not an FHA lender, you’re free to find one who does and refinance into an FHA mortgage. FHA Loan Fiction: First Time Home Buyers Only? | more...

March 6, 2023

FHA Home Loan Down Payments: Do You Need Help?

By Joe Wallace

If you want to apply for an FHA condo loan, an FHA mobile home loan, or even an FHA construction loan, you must anticipate the down payment requirements for these mortgages. At the very minimum, all FHA borrowers must put 3.5% down, with a higher down payment required for those with lower FICO scores. One of the first questions many readers will be asking at this point is likely, “What FICO scores require the higher down payment?” That question is one reason you’re reading this article right now; issues can affect your down payment requirements. It’s not safe to assume that you can simply pay what the FHA loan program rules require–lender standards, state law, and other variables can come into play. One variable is your credit score, and another | more...

March 2, 2023

Myths About FHA Refinance Loans

By Bruce Reichstein

There are plenty of misconceptions about refinancing real estate. If you have a house you want to refinance, it’s good to learn what you can and cannot do with an FHA refinance loan before you start shopping around for a lender. And you WILL want to shop around. FHA Refinance Loan Myths: You Have To Keep Your Original Lender You can refinance your home with another lender offering more competitive terms, rates, or perks for borrowing with that financial institution. FHA Refi Loan Myths: You Have To Refinance Into A Fixed-Rate Mortgage Borrowers can choose an FHA Adjustable Rate Mortgage (ARM) at refinance time if the lender offers such a loan. Not all participating lenders will, which is another reason to shop for the right lender. Refinancing an ARM into | more...

February 27, 2023

Anticipating Closing Costs For Your New Home Loan

By Joe Wallace

Buying a home requires planning and saving. Especially for closing costs, which can include appraisal fees, the home inspection, compliance inspections, and the Up-Front Mortgage Insurance Premium. It takes time to save for these expenses, but some borrowers will pay more up front than others. That is usually due to a combination of factors, but the thing new home loan applicants need to know is that your financial needs and goals will dictate how and when you pay certain closing costs. Did you know you can finance some closing costs and have the home’s seller help you pay for others? Government-backed mortgages like FHA home loans (including FHA One-Time Close construction loans which can help even a first-time home buyer build a home from scratch) make buying or building a | more...