12 January 2011 ~ 0 Comments

3 Tips For Comparing FHA Mortgage Lenders

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Home Page > Home and Family > 3 Tips For Comparing FHA Mortgage Lenders

3 Tips For Comparing FHA Mortgage Lenders

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Posted: Jun 04, 2010 |Comments: 0
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Comparing multiple FHA mortgage lenders is always a wise idea when searching for the lowest and best mortgage rates for a FHA home loan.  FHA mortgages are not actually originated by the FHA.  The FHA merely provides insurance to cover private loans.  As a result, the FHA loan process is not standardized.  Terms and qualification requirements vary from lender to lender.  Compare lenders in order to find the best terms to meet your needs.  There are three elements of each offer you’ll want to check on when comparing.

1. Interest rate.  This may seem obvious, but it’s the first step in the process.  Find a lender that offers a solid, low interest rate.  The lower the rate is, the better, because this will mean less money out of your pocket in the long run.  But don’t stop after comparing interest rates.  A low interest rate may be a sign of high costs elsewhere in the deal.
2. Closing costs.  Many borrowers find themselves blindsided by high closing costs and hidden fees when securing a loan.  Check up on these costs when comparing lenders.  Often, a loan with a low interest rate will actually cost you more money due to high closing costs.  Be careful.
3. Fixed or adjustable.  Adjustable rate mortgages always have lower initial interest rates than fixed rate mortgages, which could save you money, but be cautious.  The interest rate for an adjustable rate mortgage may increase over time, costing you more.  A fixed rate mortgage will never increase or decrease, but it will likely be higher overall than a similar adjustable rate mortgage.  Make sure you know which is which, and make sure you know which variety you are signing up for.

Look at each of these elements when comparing different FHA lenders.  It can be helpful to submit a request for quotes to a third party company that specializes in gathering mortgage rates.  Many such companies will provide you with personalized quotes from a variety of lenders, and they’ll do it for free.  This can save you time, stress, and effort, and you won’t have to deal with repetitive paperwork.

Regardless of how you find FHA lenders, compare these three elements and make sure you know what you’re looking for.  Otherwise your comparison is worthless!

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Krista Scruggs is an article contributor to Lender411.com. Lender411.com will locate the best mortgage rate in your area by connecting you instantly with up to four qualified lenders. Visit Lender411.com today to compare mortgage rates instantly.

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When a Landlord Should Retain an Attorney

This article outlines the times and circumstances in which landlords in Florida must retain an attorney. Read on to learn more.

By:
Lender411l
Lawl
Dec 15, 2010

Why Foreclosure Defense Usually Means Foreclosure Delay

This article outlines the most common options available to homeowners facing foreclosure in the state of Florida. Read on to learn more about what you can do if you’re in this situation.

By:
Lender411l
Lawl
Dec 13, 2010

A Common Pitfall to Avoid When Trying to Evict a Tenant in Broward County

This articles outlines one of the most common pitfalls that can effect tenant evictions in the state of Florida. Read on to learn more.

By:
Lender411l
Lawl
Nov 17, 2010

Choosing Between Debt Consolidation and Debt Settlement

This article outlines the differences between debt settlement and debt consolidation.

By:
Lender411l

Finance>
Debt Consolidationl
Aug 06, 2010

Debunking 4 Myths of Home Loan Modifications

This article debunks 4 of the biggest myths associated with home loan modification.

By:
Lender411l

Finance>
Mortgagel
Aug 06, 2010

Top 3 Ways to Waste Money on Home Improvements

This article reveals the three worst home improvement projects to waste your money on. These three projects likely won’t offer a positive return on your investment. Avoid them!

By:
Lender411l

Finance>
Mortgagel
Aug 06, 2010

Buy, Upgrade, Or Refinance Your Home

This article offers some good advice about why now is the best time to buy, upgrade, or refinance your home. Read on!

By:
Lender411l

Finance>
Real Estatel
Jul 02, 2010

5 Steps To A Loan Modification On Your Own

This article outlines the five most important steps involved in completing a loan modification application package.

By:
Lender411l

Finance>
Mortgagel
Jun 30, 2010

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