More on FHA Loans

FHA Mortgage Guidelines

Mortgage Insurance
FHA insured loans require mortgage insurance to protect lenders against losses that result from defaults on home mortgages.

 

Lending Limits for FHA Loans
FHA mortgage lending limits vary based on a variety of housing types and the state and county in which the property is located.

 

Your Loan Checklist
Before you start the loan process, you’ll want to be prepared for the loan application. Have your information organized and ready for your loan officer. Be prepared to pay for property appraisal and a credit report.

 

Closing Costs
While FHA defines which closing costs are allowable as charges to the borrower, the specific costs and amounts that are deemed reasonable and customary are determined by each local FHA office.

 

Debt to Income Ratios
In order to prevent homebuyers from getting into a home they cannot afford, FHA guidelines have been set in place requiring borrowers and/or their spouse to qualify according to set debt to income ratios.

 

Credit Issues
An FHA loan applicant’s past credit performance that demonstrates good credit history and a solid track record of timely payments will likely be eligible for the mortgage.

 

Let me assist you by having a Lender and Real Estate Sales Professional contact you for more information and to get free Bank Owned and Standard Property Listings. 

 

 
Cheryl Washington
”Your Real Estate Concierge”
Mailto:relocatewithcheryl@yahoo.com
Mobile: 209-513-1169

Buying a Home – Getting Started

Financing Your Home

Most real estate professionals and mortgage lenders recommend pre-qualifying for a loan before selecting a home to purchase. This process will help you:

• Determine the price range you can afford
• Understand the types of loans you qualify for
• Determine what your monthly payment will be
• Estimate the downpayment and closing costs

The Loan Process

Try pre-qualifying for a mortgage with our in-house lender, or let your REALTOR® help you to select a mortgage lender. Once you have made your decision, these are the steps of the process:

• Application – All pertinent documentation is obtained. Fees and down payments are discussed, and the borrower will receive a Good Faith Estimate (GFE) and a Truth-in-lending statement (TIL), itemizing the rates and associated costs for the loan.
• Documentation – If not already completed in the pre-qualification stage, your REALTOR® will order all necessary supporting documentation. Once inspections are completed, your Associate will order an appraisal on the property. As it comes in, documentation is checked for any irregularities.
• Loan Submission – Once all the necessary documentation is in, your completed file is submitted to a lender for approval.
  
• Loan Approval/Underwriting – Loan approval, or underwriting, generally takes 24 to 72 hours. All parties are notified of the approval and any loan conditions that must be received before the loan can close.
  
• Closing – Once all parties have signed the loan documents, they are returned to the lender. If all the forms have been properly executed, the lender sends the loan funds by wire transfer. At this point, the borrower finishes the loan process and actually buys the house.

 

Let me assist you with choosing that “just right Realtor” that will make your property search and lending choice easier.  Let me be your “hook-up” for your real estate needs.

Cheryl Washington
”Your Real Estate Concierge”
Mailto:relocatewithcheryl@yahoo.com
Mobile: 209-513-1169

 

FHA Loan – What to Ask

FHA loan comparison questionnaire

It’s important to compare offers from several lenders before you select an FHA-insured loan because the interest rate and terms can vary. Here are some of the many questions you should ask about each loan:

1. What is the initial balance?

2. How much is the required down payment?

3. What is the term?

4. What is the initial interest rate?

5. How many points, if any, must be paid for that rate?

6. Is the rate locked? If so, when does the lock expire?

7. What is the initial monthly payment?

8. How much is the upfront mortgage insurance?

9. How much is the monthly mortgage insurance?

10. Is the mortgage insurance included in the monthly payment?

11. Does the payment include property taxes, homeowners insurance or other items?

12. Can the interest rate increase? If so, how often and by how much?

13. Can the loan balance increase? If so, when will the loan be recast?

14. Is there a prepayment penalty?

15. Is there a balloon payment? If so, how much and when is it due?

16. What are the closing costs?

Cheryl Washington
”Your Real Estate Concierge”
Mailto:relocatewithcheryl@yahoo.com
Mobile: 209-513-1169