Are you ready to apply for an FHA home loan? There are some steps you can take in the planning stages to make sure that when you fill out those forms, you are absolutely ready.
FHA Home Loans: Is Now The Right Time To Buy A Home?
There are many things that come together to make a home loan transaction successful; one of them is the timing of your loan application. Is now the right time to buy?
If you have a down payment saved or budgeted for, if you have checked your credit, if you have done the math on your finances, you have a very good idea of your financial status at the moment.
If there are things left undone, you can pick some of the most simple or obvious places to begin to determine whether now’s the right time to buy; have you run an estimate to see how much loan you can afford?
You can use an online mortgage loan calculator to estimate a monthly mortgage payment and a possible loan amount. Once you have those numbers, compare what you can afford to the average house price in the market where you want to buy. Are prices within the range you can currently afford?
Don’t Forget To Budget For FHA Home Loan Expenses
When planning a budget or saving for your FHA home loan, don’t forget to save money for up-front costs of the loan such as the lender’s fee, appraisal fees, and other expenses you won’t be rolling into the mortgage loan amount.
And when calculating your mortgage payment, don’t forget to include property taxes, Homeowner’s Association fees, and any required insurance.
Shop Around For An Affordable Neighborhood
Some buyers might need to look at housing markets they are not familiar with to make a home buying decision that is well within the range of prices they can afford.
If you don’t know a local housing market well, try asking a real estate agent or someone who does know the area about the nature of the neighborhoods you’re reviewing and whether there are planned developments or other major changes coming.
FHA Home Loans: When The Price Isn’t Right
If you run the numbers and what you are able to afford isn’t enough to get you the right home in the neighborhood you want, there are some steps you can take including cutting down on monthly spending until you’re able to afford the higher mortgage payments.
You should also think about delaying your home loan application paperwork until you can afford to make a larger down payment or get down payment assistance to help.
If you do choose to delay your home loan application, renting a home in or near the neighborhood you want will go a long way toward helping you make a more informed decision about buying there.