How To Shop For An FHA Loan

I LOVE TO SHOP! But when you are shopping for a FHA mortgage there are some smart shopping tips!

Ask your lender how long they have been doing FHA loans. Many broker shops stopped offering FHA loans during the “subprime” days because it was more expensive to be certified to do them! (An annual audit can cost over $10,000!)  Don’t be a TEST case for the lender! (that’s literally a term used by FHA – they make “new” lenders submit cases directly to FHA for review.  This will add a minimum of 30 days to your approval!)

Ask about credit scores. FHA says that they don’t have a minimum credit score – however, many lenders are requiring a score of at least 600. There are some exceptions, but be leary of someone who only memorized the FHA guidelines – and doesn’t quickly tell you that Investors can and do apply their own guidelines on top of the FHA guidelines (especially since Fannie and Freddie say they will soon stop purchasing loans with scores under 620!).

Ask for a Good Faith Estimate. Different lenders charge different fees.  Just because someone offeres you a lower rate – doesn’t mean it’s the cheapest mortgage!  Check the “total cost to borrowers.”  Also make certain that they have a fairly accurate number for taxes and insurance.  Some lenders “lowball” numbers in an effort to make you feel more comfortable with a quote!

Remember – there’s more to shopping for a mortgage than the RATE!

If you are shopping for a FHA loan in NC call Steve and Eleanor Thorne, FHA Experts at First Financial Services in Raleigh, NC.  http://www.stevethorneonline.com

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