Questions to Ask Your FHA Lender
Buying a home is much the same.
You should find a reputable lender who offers you good rates and terms, and you deserve to work with someone you feel comfortable with. What kinds of questions should you ask to get to that comfort level? We examine some of the most popular below.
What to Ask Your FHA Lender
A good starting question? “What are the most popular mortgages you offer and why?” You want to ensure the lender offers the FHA loan type you need, and there’s no one-size-fits-all home loan product that addresses all needs or property types.
If the lender isn’t familiar with the loan you need, you might want to try other lenders with experience working on the type of FHA mortgage or refinance loan right for you.
Ask About Fees And Costs
Don’t just ask what the fees and closing costs are, be sure to ask how negotiable they are at that financial institution. Also, be sure to ask if there are perks like discounts for taking homebuyer education or counseling and whether you can set up automatic payments for your mortgage.
FHA mortgages may require an escrow account depending on a variety of factors, including whether or not you’re paying a contractor to repair or build your home on a One-Time Close construction mortgage.
Ask the lender what the setup and fees are and how common issues are handled, such as increased property taxes or other costs typically paid for through escrow.
Ask About the Mortgage Payment
Ask your FHA lender what is included in your mortgage payment besides the principal and interest. You should learn about property taxes, insurance, and even the potential of having to pay dues for a homeowner’s association.
Ask for Advice
After you have submitted your financials and other information to the lender, it is always a good idea to ask the lender what kind of loan might be best given your credit history, income, personal circumstances, etc.
Your FHA lender may have some important options for you to choose from, especially if you are flexible in the type of property you want (new construction, fixer-upper, condo, manufactured home) and whether it needs renovation or not.
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