August 17, 2018

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FHA Home Loan Mistakes To Avoid

FHA Home Loan Mistakes To Avoid

Many people have checklists to help them shop for a home, apply for a mortgage loan, and close the deal. But is your house hunting checklist really complete without adding a list of mistakes to avoid? Steer clear of these common errors some home buyers make and you will save yourself time and money.

FHA Loan Mistakes: Not Getting Pre-Approved For A Home Loan

If you get pre-approved for a home loan, the seller of the property you decide to buy (or the real estate agent, or both) will know you are a serious buyer.

Those who are in the window shopping phase of their home loan process aren’t take as seriously by a seller or RE agent, and in some cases not having pre-approval may exclude you from looking at certain properties depending on the seller or other factors.

FHA Loan Mistakes: Not Comparing Home Prices In The Same Neighborhood You Want To Buy In

If you don’t compare prices of the homes in the neighborhood you want to buy your home in, you won’t know if the seller’s price is reasonable, over-inflated, or just plain too high. Or too LOW.

How long has the home you’re looking at been on the market? How long have the other properties nearby been up for sale?

These are important factors. A home may look appealing from the outside or via a quick tour of the property, but if the home has been available for sale for a long time, there may be reasons why that is so.

Don’t be afraid to compare the seller’s price with the price of a comparable home nearby, and don’t hesitate to ask how long the home has been for sale if that information is not readily available.

FHA Loan Mistakes: Not Asking What The Future Holds For The Neighborhood

If you are using a real estate agent, be sure to ask if there are major planned developments going on nearby or scheduled to begin soon. You may not know that a shopping center, movie theater complex, or car dealership is planned to begin construction soon but the RE agent might.

It’s always important to know whether noise or light nuisances might go up near your dream home. You can’t anticipate every circumstance, but it never hurts to ask the question.

FHA Loan Mistakes: Not Checking Your Credit Far Enough In Advance Of Your Loan Application

A lot of this advice so far has had to do with the specifics of buying the home. But preparing for the home loan is just as important and you should never go into the loan planning stages without seeing your free credit reports from the three major credit agencies (Equifax, Experian, and TransUnion) so that you know what your scores and credit data looks like in advance.

Any errors, old information, or credit problems should be dealt with long before application time.

 

Joe Wallace - Staff Writer

By Joe Wallace

July 19, 2018

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.

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FHANewsBlog.com was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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