Ask Your FHA Lender About These Issues
January 1, 2024
Are you a first-time homebuyer? There are plenty of questions to ask a lender. For some, the real issue is knowing where to start.
Shop Around
When asking the questions below, you want to ask them of three or more mortgage lenders for best results. Don’t skimp on the time you need to shop around for the right financial institution for you. Remember, you don’t have to use your current lender, you have more options than you think.
Ask for the Lender’s Current Mortgage Rates and Terms
It’s not that you plan to make an offer on a house when you ask, you just need to get a feel for how much things cost at the moment so you can make budgets and plan accordingly.
Ask for the Lender’s Typical Options
By this, we mean asking whether the lender offers 15-year and 30-year loan terms, whether there are any penalties to be aware of and when they are due, and how long you have in terms of grace periods, paying extra on the loan, minimum escrow balances where applicable, etc.
Ask Your FHA Lender to Explain the Bank’s Loan Fees
Every lender has fees, and those may differ from corporation to corporation. Be sure to ask which fees apply to your transaction, what alternatives you might have, and when those fees must be paid.
Ask Your FHA Lender About Adjustable Rate Mortgages
An adjustable rate mortgage or ARM loan can help you offset some of the costs of buying a home when mortgage rates are high.
Some borrowers don’t want to bother with an FHA ARM, but even if that’s true, be sure to ask the lender whether the loan they are offering you is a fixed rate or adjustable rate mortgage.
Ask for Perks
If you are a first-time homebuyer or have not owned a home in three years or more, ask the lender what options or benefits might be offered to you at application time as a new buyer. You might be surprised at your options.
Ask for Recommendations
Ask your real estate agent or other housing industry reps to recommend other mortgage-related services. Local reputation is an important aspect of shopping around for an FHA loan, you’ll want to know what other professionals think of your lender options.
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A Good Faith Estimate Provides Mortgage Information
Shop Around
When asking the questions below, you want to ask them of three or more mortgage lenders for best results. Don’t skimp on the time you need to shop around for the right financial institution for you. Remember, you don’t have to use your current lender, you have more options than you think.
Ask for the Lender’s Current Mortgage Rates and Terms
It’s not that you plan to make an offer on a house when you ask, you just need to get a feel for how much things cost at the moment so you can make budgets and plan accordingly.
Ask for the Lender’s Typical Options
By this, we mean asking whether the lender offers 15-year and 30-year loan terms, whether there are any penalties to be aware of and when they are due, and how long you have in terms of grace periods, paying extra on the loan, minimum escrow balances where applicable, etc.
Ask Your FHA Lender to Explain the Bank’s Loan Fees
Every lender has fees, and those may differ from corporation to corporation. Be sure to ask which fees apply to your transaction, what alternatives you might have, and when those fees must be paid.
Ask Your FHA Lender About Adjustable Rate Mortgages
An adjustable rate mortgage or ARM loan can help you offset some of the costs of buying a home when mortgage rates are high.
Some borrowers don’t want to bother with an FHA ARM, but even if that’s true, be sure to ask the lender whether the loan they are offering you is a fixed rate or adjustable rate mortgage.
Ask for Perks
If you are a first-time homebuyer or have not owned a home in three years or more, ask the lender what options or benefits might be offered to you at application time as a new buyer. You might be surprised at your options.
Ask for Recommendations
Ask your real estate agent or other housing industry reps to recommend other mortgage-related services. Local reputation is an important aspect of shopping around for an FHA loan, you’ll want to know what other professionals think of your lender options.
------------------------------
RELATED VIDEOS:
Reverse Mortgages Are Ideal for Senior Borrowers
The Pros and Cons of Subprime Mortgages
A Good Faith Estimate Provides Mortgage Information
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