FHA Loan in El Paso

Mistake that you will need to avoid when applying for a FHA loan

When you decide to buy a home, this is the biggest financial decision you have ever made. It can also prove to be the biggest source of your daily stress. For the first time home buyers, this decision not only guarantees you as good home in the future but also can lead you towards bankruptcy. You will need to be very careful about it. It will at first be very confusing and overwhelming for you so you should first do your due diligence and research on the type of FHA  loan you want. This means that you can avoid some of the most common mistakes done by first time home buyers.

  1. You did not understand the full cost of buying a home

 This is a very common amongst the first time home buyers. As a person who had never bought a house in their lifetime, you are probably used to paying rent monthly and some other utility costs plus the cable and telephone bills. As a homeowner, some of the additional costs that were covered by your landlord or land lady will be your responsibility. For instance the repair and maintenance bill, property taxes, insurance and many more. Be ready for those costs.

  1. You assumed you won’t qualify for a loan

Many people usually think that they can never be approved for a loan because they haven’t saved enough money that can pay for the down payment. The big surprise is that with your monthly bills as a renter, you can buy a magnificent house if you wish to. Sit down and make a calculation of what you have and what you can spend on a house. You can talk to an efficient lender and finds out what you can qualify for.

  1. Getting a pre-qualification letter at the last minute

A lot of people make the mistake of looking for a house of their choice before they talk to a lender. You should know that there is a lot of benefits that you can get just by getting approved early. For one, pre-qualification will aid you by making you shop in your price range and when you get the house, you can act fast by giving an offer for it. It also give the lender ample time to get all the error in your credit report before they become a problem for your loan.

  1. Talking to one lender

People who are home shopping will most of the time use a lender recommended by friends or family members.  They do not even think of shopping around for lenders. Getting recommended is good but that do not mean he or she is the best lender for you. Look around before you stick to a lender.

First time buyers in El Paso are usually very excited about owning a home and might sometimes spend their whole fortune on it. This is a big mistake.  You should also do research on a program that can help you with your down payment. You should consider contacting FHA loan programs in your area.