Choosing from FHA Lenders to Find the One that Fits You

Mortgage Application Denied Stamp Shows Home Finance RefusedBuying a home isn’t like walking into Walmart and selecting the cheapest home on the shelf, or skipping onto the car lot with your old junker and leaving with a shiny new car. Nope. Buying a house is a process with plenty of ins and outs and ups and down, sometimes enough to leave you feeling completely topsy turvy. Why is this? Well, mostly because there are so many different factors that come into play when you purchase. Unfortunately, a lot of these factors can affect how much you pay in the end. And when you’re buying a house, you’re not dealing in pennies, you’re dealing in thousands.  Because financially there is so much at stake, you want to strap yourself into a home loan with FHA lenders that you know you can trust.

How to Find a Lender Before you Begin the Loan Process

When you purchase a home you don’t typically want to go for the first person willing that you find that is willing to give you a loan. This is the case whether you’re purchasing conventional or going through FHA lenders. Each institution will have its own unique set of pros and cons that they bring to the table, so you’re best bet before deciding on a lending company is to compare the quotes from the handful that you find most appealing. Comparing at least three and up to five or six is a good place to start. You don’t want to overwhelm yourself, but you don’t want to sell yourself short either. By comparing the quotes given to you by each individual you will be able to determine who offers the best interest rates, costs, and settlement fees, all of which can affect the final purchase price of the home.

In addition to comparing FHA lenders, you’re also going to want to make sure you’re looking at lending companies that have been in the business long enough to be well established. Your lender has to trust that you will make the mortgage payment each month, and you have to trust that your FHA lenders will follow through on their end of the bargain as well. This isn’t to say that new lending companies aren’t worth looking at, because they are, but you definitely don’t want to overlook those that are established. Sometimes they are established for a reason.

When looking for a Federal Housing Administration loan you can find all of the lenders that have been approved by doing a search on the HUD website. They have slots where you fill in your criteria and the search will find those companies that match what you’re looking for. If you don’t know where to start, this is a really good place.

Consider All of Your Resources

When you’re trying to find a lending company that will work for you, you don’t want to overlook your greatest resource – the people that have been in the business long enough to know who to trust. These people include your loan officer and real estate agent because they are going to know just a bit more than you do. Get their opinion on which lenders are the best and listen to them. Call the companies. Interview the professionals. Take their knowledge and let it work for you.

After you have done all of this, look inward and listen to your gut. More often than not, it knows what it’s talking about. If you’re looking at multiple options and one of them feels right, then maybe it is. Of course, you may not be sure about that so feel free to interview the lender, get a feel for their work ethic, and take into account how they treat you and how they discuss the loan. Are they respectful, kind, courteous, or are they something else? These things can be an indicator of the type of lender you will be working with, so it’s not unwise to take them into consideration.

When the loan process is complete, the end result is a loan with your name on it. You may have found your lender through the HUD database, or you may have taken a tip from a trusted professional, but you will ultimately have a loan that is connected to a home, both of which are now yours. You are responsible for this loan, and part of that responsibility is to make sure you go through a lender you can trust.

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