FHA Home Purchase

There are lots of good reasons to choose an FHA mortgage when buying a home, especially if one or more of the following apply to you:

• You’re a first-time homebuyer.
• You don’t have a lot of money to put down on a house.
• You want to keep your monthly payments as low as possible.
• You’re worried about qualifying for a mortgage.
• You don’t have perfect credit.

If any of these things describe you, then an FHA mortgage may be right for you. Why? FHA mortgages offer many benefits and a level of security that you won’t find in other mortgages including:

Low Cost: FHA mortgages have competitively low interest rates because the federal government insures the mortgages for lenders.

Smaller Downpayment: FHA mortgages have a low downpayment and the money can come from a family member, employer or charitable organization as a gift.

Easier Qualification: Because FHA insures your mortgage, lenders may be more willing to give you mortgage terms that make it easier for you to qualify.

Less Than Perfect Credit: You don’t have to have perfect credit to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it’s easier for you to qualify for an FHA mortgage than a conventional mortgage.

Fixed Rate Mortgages – Most FHA mortgages are fixed-rate mortgages. The advantage of a fixed-rate mortgage is that your interest rate stays the same during the mortgage.

Help You Keep Your Home - The FHA has been around since 1934 and will continue to be here to protect you when the others walk away. Should you encounter hard-times after buying your home, FHA has many options to help keep you in your home and avoid foreclosure. An FHA loan will help you buy your house and keep it too?

If you are planning to buy a home soon, Best FHA Lender recommends that you follow these steps.

Step 1. Figure Out How Much You Can Afford.

FHA loan guidelines have a specific calculation that compares your current gross income to your existing debts in order to provide a maximum loan amount that you can qualify for.  What you can afford also depends on your downpayment and interest rate.

FHA provides mortgage calculators to help you with your home buying decision.  However, it is best to contact us at Best FHA lender to find out for sure.

My experience has shown that it is not wise just to find out what is the maximum amount for which you qualify.  It is also essential that you determine what is the maximum monthly mortgage payment that you are comfortable with based on your personal monthly budget.

Step 2. Get Prequalified

Contact us today at Best FHA lender for an FHA prequalification.

Our FHA interest rates and closing costs are consistently lower than our competitors.  Compare our FHA loan interest rate to the national overnight average at bankrate.com.

FHA loans allow for the use of down payment assistance.

Step 3. Shop For a Home

Once you have your FHA prequalifation, you should contact a real estate agent that is experienced in home purchases using FHA financing in order to discuss available homes and options in your target area.

Using a real estate agent with a solid understanding of FHA guidelines regarding approved home types and seller concessions in critical to help you save time and money.

Download HUD’s  Wish List – What features you want.
Download HUD’s Home Shopping Checklist.

Step 4. Make An Offer

When you have found a house that you want to buy, you will submit an offer with the help of your real estate agent.  Discuss the process with your real estate agent. If the seller counters your offer, you may need to negotiate until you both agree to the terms of the sale.  Your offer becomes a legally binding contract if the seller accepts it. Because of this, you need to make sure the offer includes all of the contingencies, concessions, and other details you need it to cover.

Step 5. Get a Home Inspection

Make sure that the offer that you make is contingent on a home inspection.  A home inspection gives you more detailed information about the overall condition of the home prior to purchase. In a home inspection, a qualified inspector takes an in-depth, unbiased look at your potential new home to:

• Evaluate the physical condition: structure, construction, and mechanical systems;
• Identify items that need to be repaired or replaced; and
• Estimate the remaining useful life of the major systems, equipment, structure, and finishes.

The home inspector does not estimate the value of the home.  An appraisal is different from a home inspection. Appraisals are for lenders; home inspections are for buyers.

An appraisal is required to:

• Estimate the market value of a house;
• Make sure that the house meets FHA minimum property standards/requirements; and
• Make sure that the house is marketable.

FHA does not guarantee the value of the condition of your potential home.  If you find problems with your new home after closing, FHA can not give or lend you money for repairs, and FHA can not buy the home back from you.  That is why it is so important for you, the buyer, to get an independent home inspection.

It is your responsibility to be an informed buyer.  Make sure that you are satisfied in every respect with the home you are going to buy. You have the right to carefully examine your potential new home with a qualified home inspector.

Step 6.  Shop For Homeowners Insurance

FHA loans require that you have homeowners insurance.  This is an insurance policy that combines liability coverage and Insurance to protect you against physical damage to a property from fire, wind, vandalism or other hazards.

Step 7.  Sign Papers

When your final FHA loan documents ready you, your closing appointment will be set to finalize your home purchase transaction.  Make sure you read everything before you sign.