Are you looking for a home loan program with lenient requirements? Don’t have owned a home in the last three years? Then, an FHA loan will be an apt choice for you. Guaranteed by the FHA lenders, this loan program allows you to get an approval with a 3.5% down payment and a 500 credit score. But the FHA does not offer this loan, it is offered by the FHA-approved lenders. So, you have to look for lenders to get the loan approval.
And when you are looking for one of the best FHA lenders in Houston, you should keep this in mind that all FHA lenders are not the same. You should not choose whichever lender you see first. There are diverse factors that you should take into consideration and here, we have listed down a few of them –
- Customer service
Finding an FHA-approved lender with excellent customer service is vital for borrowers, especially first-time home buyers. So, you should look for an FHA lender who offers top-quality customer service. How to understand this? Well, the ideal path to understand is to check the customer review. If the previous customers are satisfied with the service that they received from the lender, then it will be reflected in the words of their reviews. In case, you find that most of the reviews are negative ones, then you should start looking for another lender.
- Integration with other accounts
Although it should not be the chief factor, it can be convenient to keep all of your financial accounts in one place. For example, if you have a bank with ABC (imaginary bank name), it could be a good idea to get a quote from them. Moreover, some lenders offer discounts on origination and other lenders’ fees for existing customers.
- Qualification requirements
Although the FHA sets minimum standards, it is important to realize that some lenders have more lenient qualification requirements than others. For example, a lender might ask for a high credit score and down payment, while another one may be ready to approve your loan with a low credit score and down payment. So, the qualification requirements asked by lenders also different them.
- Interest rates and other fees
Last but not least, one of the most important things that homebuyers can do is to shop around for a mortgage, especially to find the lowest annual percentage rate (APR) that includes any origination fees along with the loan’s interest rate to tell you the true cost of borrowing. Each lender sets its own FHA interest rate, and they can vary significantly. Also, while some of the major costs of FHA loans are indeed standardized, some can vary from lender to lenders, such as lender origination fees, underwriting fees, document fees, and rate lock fees. So, asking about the fees is a must for you.
These are some of the crucial things that differentiate an FHA-approved lender from another one. So, without waiting any more, check these things and opt for a lender today.