Did you know every FHA lender is not created equal? Did you know you can pick the best lender depending on certain circumstances? Finding an FHA mortgage lender is not necessarily an onerous task when you are aware of a few tips. As FHA loans have become extremely popular among the first-time homebuyers, the number of lenders has doubled. Before deciding on the lender, you should shop around and figure out whether the professionals meet the particular parameters.
FHA or Federal Housing Administration is a government agency responsible for ameliorating housing standards and guaranteeing a high-quality financing system for both present and first-time homeowners. The FHA loan program makes sure people can get approved for affordable home loans, and the lenders offer the mortgage options to the borrowers. Even though the loan is insured by the government, the homebuyers cannot get it from the government directly. For qualifying the program in Houston, you should have at least 500 or 580 credit scores. Then the FHA-approved lenders can present the mortgages to the eligible borrowers. As a borrower, you should check whether the lender has worked with an FHA borrower before or how the customer is. There are several considerations to make before finding the best FHA lenders in Houston and go through the tips below.
Who are FHA-approved Lenders?
A mortgage company that has been approved by the Federal Housing Administration earns the title of an FHA-approved lender. Only the FHA-approved lenders are eligible for making the FHA loans to the first-time or existing borrower. When a lender wishes to get enlisted, the person must adhere to the guidelines published by the FHA. The set of guidelines also include the criteria (credit scores and income) for the borrowers. The lenders also have to check whether the borrowers meet the guidelines before dealing with the applications. There might be credit report fees and appraisal fees that many borrowers forget to include.
Check the Interest Rates
Before finalizing the lender, you should look for the lowest APR or annual percentage rate that involves the loan’s interest rate along with the lender’s feels. Without asking the real cost of borrowing, you should not dive into the process ever. As every FHA lender sets the interest rate, it can vary on a large-scale. Hence, the major costs from one lender to another, and you should calculate the document fees, underwriting fees, lender’s fees, and rate lock fees.
Check if Customer Service is Available
If you can find a lender with customer service, it will be a cherry on top. For the home buying process, excellent customer service is a necessity. The lenders give correct answers and solutions to the borrowers in need.
To cut the clutter, you can open the official website of the Department of Housing and Urban Development for finding the listed FHA lender in your area. It is a fast and smart way to find an FHA-approved lender who is experienced in this field. So, keep the tips in mind and find the best one in Houston!
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.