The process of getting a home loan is not easy until you find the best lender. If you are looking for a government-backed FHA loan, the same golden rule is applicable too. With a lender by your side, you can get pre-approved systematically and get the best of loan benefits. However, there is a fair share of homework you need to from your end. The world of mortgage is pretty overwhelming and the absence of a guide is terrifying. It is safe to say that the lenders guide the borrowers from beginning till the end.
Now, can you afford to miss a chance? Only if you can follow a few tips, you will have one of the best FHA lenders in Houston right beside you. The tips are not difficult to carry out; moreover, the suggestions ease the loan application at the same time. Unfortunately, many people are not concerned about finding a lender or following the tips before finding a lender. Without doing a background check on their financial resources, they end up choosing any lender they come across. Always remember, a professional lender can pick out the best type of FHA loan suitable for your situation. Let’s have a look at the essential tips before picking the FHA lender.
Check where Your Credit Score is At
First-time homebuyers are likely to feel like they are applying for college all over again. Just as how the perfect grades are accepted, you can see a similar scenario here. Instead of proving your grades, your credit scores matter here. The credit score decides on which mortgage is suitable for your financial condition. If you have at least 580 or 500 credit score, an FHA-approved lender might help you straight away. In case your credit score is lower than the benchmark, you can ask the help of the lender, too. Nevertheless, review your credit score and find out discrepancies if any. As the credit score indicates your ability to repay the house loan, the lenders always check the credit score before processing the loan application.
Check whether You will Get Pre-Approved
Another key factor is to notice whether the lender will offer the pre-approval form. If you get pre-approved, the sellers show additional interest in you. Most importantly, they consider you as a serious buyer. In addition to the context, you can figure out the actual loan pricing. Before the pre-approval, the lenders thoroughly assess your finances and credit score. Meanwhile, you should gather a few documents including pay stubs from the last month, social security number, a complete list of financial accounts, a history of residential address, and other information. The list of documents varies from one lender to another. Of course, pre-approval does not indicate that you can apply for an FHA loan. Many lenders recheck credit and other histories later.
Doing your homework is the only way to take a step forward to finding a lender. Don’t worry, take a deep breath, and keep finding the best FHA lender in town.
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.