April 20, 2022
There is a little checklist of things not to do when buying a home. The top of the list? Not shopping around for a lender.
FHA home loans have multiple options including the type of loan (fixed-rate, adjustable-rate mortgage) and the loan term (15 years or 30 years). But there are also multiple options based on the property you want to buy; a suburban home, a townhouse, condo unit, or even a multi-unit home.
That variety of options brings with it a need to know more specifics about the type of loan you seek, and there are definitely things NOT to do when you are considering these options. And not all the considerations are directly related to applying for and getting approved for an FHA mortgage. Some have a lot to do with what happens next after you’ve purchased the property.
Don’t Neglect Your Future Plans
If you are buying your first home, do you plan to move out in a few years due to career changes, increases in family size, or other factors?
It’s good to consider the future when deciding to buy a single unit or multiple-unit property. If you know you won’t keep the home for the full loan term, does that affect your desire to purchase a larger or more elaborate home? Thinking ahead is a great idea.
Don’t Forget To Look At The Local Area
The location of your home could be more important than you realize. Is your house close to a major highway? That has pros and cons. If you are starting a new family and need peace and quiet for an infant, a home on a flight path near a busy major airport could be an issue–one you don’t realize the severity of until you move in.
Also, the location of the home in relation to essential services may be a factor–do you need access to local schools, daycare, extended care facilities, or college campuses?
Don’t Forget To Ask Around
Are there any known issues with noise, excessive light pollution from a nearby big-box store, or parking problems? If you are buying a home in rural Indiana, your questions may be a lot different than if you were buying a home in a Chicago neighborhood. In Indiana, you may want to ask about how local snow removal is handled, and whether there are issues with extreme weather.
In Chicago, you would likely want to ask about lake-effect snow issues, street cleaning schedules and parking issues related to on-street parking if you are buying a home in the city limits.
Don’t Forget To Research The Area
And not just for the obvious homebuyer issues we’ve been discussing here. You will also want to research the area to see if a loan is available in that housing market for the type of property you are after. Some areas just don’t support FHA Condo Loans or FHA Manufactured Home Loans due to low demand.
Other locations may have more single-unit homes than multi-unit properties to choose from. Knowing the nature of your housing market (including high-cost areas and issues related to them) is an important part of making the most informed loan decisions you can make.
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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