FHA loans are a popular option for first-time homebuyers and borrowers who have financial challenges because of their relaxed requirements. Before applying for an FHA loan, it’s important to shop around and compare approved FHA lenders. In this article, we’ll discuss some of the qualities to look for in a lender when taking out an FHA loan.
Tips for Finding the Best FHA Approved Lender
Everyone’s financial situation is different. When shopping around for an FHA loan, it’s important to compare offers from different lenders. You should choose the offer that works best with your current financial situation and sets you up for success in the future. Here are some tips for comparing lenders:
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- Get quotes from multiple lenders. Don’t just settle for the first offer you’re given. See for yourself what’s out there and then, once you’ve compared your options, you can make a decision.
- Make sure you meet minimum credit score requirements. For an FHA loan, you’ll need a credit score of at least 500 for a 10% down payment. If you want to be able to put down 3.5% you need a credit score of 580.
- Compare closing costs and fees. In addition to your down payment, you’ll also be required to pay a handful of fees to your lender at or before closing. Ask lenders upfront what their fees are so you know exactly how much you’ll be expected to pay.
- Compare APRs. Your APR is the annual cost of your loan. This number includes your interest rate as well as the associated charges.
Characteristics of a Good Mortgage Lender
When you’re shopping for a mortgage lender, you should look for someone who’s able to provide a good customer experience. Numbers and figures are important, but they’re not the only thing that matters. A good mortgage lender will possess most, if not all, of the following traits:
- Good with communication – Something to look for is whether your lender is timely with their responses. Do they reply to your voicemails and emails in a timely manner? You want to know that when you have a question or concern, you have someone you can reach out to and get answers right away.
- Transparent – A good lender will be honest and transparent throughout the entire process. They’ll disclose information to you willingly and won’t try to dodge your questions. A good lender neither over-promises nor under-delivers.
- Familiarity with the local market – Your lender should have a good understanding of the local market and area where you plan to purchase a home. Ideally, they’ll have a network of real estate professionals and appraisers they work with in the area.
- Reputable – This may be a given, but it’s important to hire a mortgage company that has a good reputation and track record. A good reputation is proof of the quality of their services.
Work with an FHA Lender You Can Trust
Mortgage Solutions Financial is a reputable, highly qualified FHA approved lender. Call our office today to learn more about our services or begin the application process.
