Shopping for a loan is an intimidating task, but finding the perfect private lender is no less than confusing. The sense of analysis paralysis might creep in when so many options are waiting. Since you have decided on the right type of FHA loan program, the process is likely to run smoothly. FHA loans have affordable interest rates and serve financially troubled situations pretty well. When it is going to be an FHA loan, look for an FHA-approved lender. Of course, you would like to weigh in your application, and a few tips can help you on the way.
The best FHA lenders in Houston are approved by the Department of Housing and Urban Development. HUD sets the requirements because it manages the FHA loan programs, as well. On HUD’s website, you can find an online database of lenders. If you want to hire a local lender, you can check out the list of approved lenders. The searchable database is categorized by city, county, and state. It is a long list, but you can narrow it down by using the zip code. While you are at finding the best FHA lenders, remember a few tips. Let’s take a look below.
Do not Stop Right after One Lender
Hearing yes from a lender feels good, but how do you know he is the one? For many borrowers, the whole process turns out to be an intense roller-coaster ride. If you make a mistake in choosing the lender, you will be stuck with a wrong loan program too. When an unsuitable loan program falls into your lap, you will have to make hefty monthly payments. For this reason, you must continue to shop and find better deals. If you can qualify and get approved, there is no downside. It may take time, but it is worth the wait too. The interest rates vary from one lender to another. Needless to say, it is a smart way to save thousands over the life of the loan.
Gather Your Credit Score
Before applying for an FHA loan or finding an FHA lender, credit score plays a crucial role. Checking the credit score will help you in several ways. If you thought your credit score is not good enough, reviewing the credit report might unfold a new tale. The lender options are stipulated if you have damaged credit. FHA does not set the credit score for the loan programs; hence, the lenders are allowed to change it. FHA lenders have two minimum credit score requirements. If you want to obtain a 3.5% down payment, you need to have 580 credit scores. The other credit score is 500, and you need a 10% down payment for it. If your credit score is lower than 500, you should work on improving it.
After following these vital tips, you will inch towards your final goal. The process is not difficult, and you must shop around until you meet the best FHA lender in Houston. Also, give preferences to the lenders who are willing to offer down payment assistance programs. So, shop around!
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.