There are many questions to ask your participating FHA lender when you are getting ready to purchase a first home or a replacement home. If you are looking at working with a realtor and begin your house hunting process, make sure you create a list of questions for your lender so you can go into the home loan process as informed as possible.
Do FHA Home Loans Require Me To Have A Financial Need To Qualify?
Your lender will explain that no, FHA home loans are not need-based. There are government-backed need based loans that feature income requirements and maximum income rules; USDA home loans are a good example.
But FHA mortgages have no income limit, are not need based, and do not require the borrower to be a first-time home buyer.
What Kind Of FHA Home Loan Interest Rate Will I Qualify For Based On My Current Financial Information?
Your loan officer will explain that interest rates are set based on several factors including the current market environment, but also the borrower’s FICO scores. Be prepared to discuss FICO scores and the lender’s minimum standards for those scores as related to interest rates.
Ask Your Lender To Compare The Cost Of Your Mortgage As A 15-Year Loan Or A 30-Year Mortgage
You may have no intention of applying for a 15-year mortgage loan, especially if you are buying a first home. But it’s a very good idea to run those numbers anyway so you can see how choosing a longer or shorter loan will affect your financial bottom line over the duration of the mortgage.
Don’t Forget To Anticipate Problems
Don’t hesitate to discuss problems with your lender related to possible late or missed payments and related issues. The idea here is that you know exactly what can and will happen in the event of one late or missed payment and how the situation may escalate if further late or missed payments become an issue.
You want to know these things just-in-case, and not find out the hard way in the event that you do wind up missing a payment somewhere down the line.
These questions will no doubt lead to others you will want to ask your lender-always get your answers as far in advance as you can so you can prepare for the loan in the most efficient way possible.