October 21, 2011
Buying a home is a big decision.
There are many factors to consider when trying to prepare for the commitment of home ownership, and an FHA loan applicant can learn a great deal by examining an FHA loan application and using an FHA mortgage calculator to learn what kind of financial details come into play.
FHA loan pre-qualifying questions at sites like FHA.com (a private company, not a government website) ask some very important starter questions you can use to begin your research.
For example, do you know how much you’re willing to spend on the home? Many borrowers at the beginning of the research process have a hard time judging what prices are fair for homes in their area and which ones might need some negotiation. Anyone who feels at a loss for such information can start by examining the FHA loan limits for their area at https://entp.hud.gov/idapp/html/hicostlook.cfm.
Knowing the maximum possible FHA loan is a good place to start. You can then compare that maximum with the house prices in your area. Cross-referencing a list of available homes for sale and comparing with the FHA limit is a good way to get familiar with the conditions in your local housing market.
The FHA loan limits are very helpful, but so is knowing whether you can qualify for such limits. If you don’t know your current credit score or have concerns about past credit issues, start by pulling your credit report and begin working on your credit details as early as possible. Credit counseling help is available and the Ginnie Mae official site offers plenty of resources and advice to get you started.
Buying a home is one of the most important financial decisions you can make, so starting your research early is the best move–you can save a lot of time and resources down the road with some early preparation today.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
Browse by Date: