Getting Ready for Your FHA Home Loan
When you go to pre-qualify for a loan--even if you don't submit the paper work, but just fill in the blanks in your mind--you'll be asked some very important starter questions you can use to begin the home buying journey.
One of the most basic questions--do you know how much you're willing to spend on the home?
Many borrowers start off having a difficult time judging what prices are fair for the homes for sale in the local housing market. Which prices are reasonable and which ones might need some haggling?
You can learn a lot in this area by examining the FHA loan limits for your local market at: https://entp.hud.gov/idapp/html/hicostlook.cfm.
Knowing the maximum possible FHA loan for your zip code or county is a good place to start. Try comparing the maximum possible FHA loan amount with the house prices in your area. This is a good way to get familiar with the conditions and types of homes available in your local housing market.
The FHA loan limits list can be very helpful, but so is knowing whether you can qualify for the maximum loan available in your area. Start by examining your credit score and getting some housing counseling if need be.
FHA loan amounts are not governed by only one or two factors--the fair market value of a given home also plays a part, but knowing how you can fix or improve your credit is definitely a good place to begin. You may not be able to predict what the fair market value of a house might be, but you can work on credit scores and debt ratios to help qualify for the best loan possible.
Buying a home is one of the most important financial decisions you can make. Start early, plan ahead, and you'll be much better prepared to commit to an FHA home loan when the time is right.
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