10 FHA Loan Mistakes Every First-Time Homebuyer Needs To Avoid

10 FHA Loan Mistakes Every First-Time Homebuyer Needs To Avoid

Business Products & Services Comments Off

Shopping for your first home can be both exciting and nerve-racking. There are lots of things you need to consider – from finding your dream home and finding a lender to help buy your house to closing a good deal. You need to make sure all paperwork are in check, especially your finances when applying for a mortgage. You can risk going house poor if you’re not careful with your choices and decisions.

If you plan on getting an FHA Home Loan Texas to finance your home purchase, make sure to take down notes and avoid the following mistakes.

Clouding your DTI ratio

One of the reasons why homebuyers get denied for an FHA Loan application is because of the increase in DTI Ratio. It would be best to avoid significant expenses before and while you’re still applying for the loan.

Not fixing your credit problems

For those who have credit problems, make sure to clean it up before applying. You can use a Consumer Credit Counselling agency to help you find solutions to your fiscal problems.

Skipping expert legal advice

Buying a home comes with legal responsibilities like contract reading and signing. Make sure to ask a property lawyer to help you review all terms of the FHA Loan contract. He can answer all your questions and make sure all details are correct.

Failure to do market research

Every homebuyer needs to search for the kind of housing market you wish to purchase. Ask yourself, do you seek an FHA mortgage loan to help you buy a home, or would you like help to finance your home construction?

House shopping with an FHA Loan Pre-approval

Before house hunting, make sure to get pre-approved first. By getting pre-approved for an FHA Loan, homebuyers will take you more seriously since you’ve already proven yourselves worthy of a loan and capable of buying their home.

Altering down payment funds

Lenders abide by the FHA Loan Handbook which states all the approved sources of a borrower’s down payment sources. Make sure to list all income sources and to never cheat on your report. Lenders will eventually verify all sources and will deny your application if they found discrepancies.

Applying for an FHA home loan without checking down payment assistance programs

First-time homebuyers can enjoy down payment assistance programs depending on your housing market. Your lender may know someone who offers down payment assistance, even if FHA doesn’t.

Agreeing on an FHA Loan without a home inspection

A home inspection can tell you the hidden issues of the property you plan on buying. If you skip a home inspection, you’re at risk of buying a home not knowing if you made a good deal or if you wasted resources on a house that has a lot of issues in the first place.

Failure to realize there are other expenses you need to consider

Your down payment, a monthly mortgage with interest fees and closing fees are the only expenses you’ll need to worry about. You need to consider the costs of repair and maintenance, property taxes, homeowners insurance, etc. along with other expenses.

Good Read: 5 Costs To Consider Before You Buy A Home In 2018

Assuming you can finally move on the closing day

Just because you already have a closing date doesn’t mean it’s already your moving date. It is still subject to change, so ask before assuming and making arrangements.

Back to Top