Mortgage

Avoid These 7 Mistakes When Applying For An FHA Mortgage For The First Time

Buying a house with the help of a mortgage is an excellent and affordable way to acquire home ownership. However, first-time homebuyers and mortgage borrowers are prone to make mistakes. Here’s how to steer clear of the usual errors made when getting an FHA mortgage and purchasing a house.

Most home buyers tend to make the same mistakes others already made in the past. Don’t be among the population who are clueless about the mortgage process before venturing the market. Here are seven common first-time home buyers mistake you needed to avoid when applying for FHA Loans San Antonio.

Having A High Debt-To-Income Ratio

Your Debt-To-Income Ratio computes how much of your monthly debts constitutes your monthly income. Most mortgage lenders require their borrowers to have a DTI ratio of 43% or lower. Make sure not to cloud your DTI ratio before the mortgage application up until closing.

Not Having Enough Down Payment

While there are mortgages that don’t require a down payment, FHA loans need at least 3.5% down. Make sure you have money for the 3.5% down payment and enough cash reserve to get approved for an FHA home loan.

Failure To Check Down Payment Assistance Programs

For first-time homebuyers, you can qualify for down payment assistance programs. Ask your mortgage broker or lender about down payment assistance programs they know so you can take advantage of this when applying for an FHA mortgage.

Good Read: Down Payment Strategies for First-Time Home Buyers

House-hunting Without Knowing How Much You Can Afford

Before you go looking for homes you like, know how much you can buy comfortably first. This way, you won’t need to waste time and effort finding houses only to realize you can’t afford them. Save yourself from false hope and heartbreak by figuring out the price range you can buy a house at.

Not Considering Other Expenses That Comes With Buying A House.

Being a homeowner does have its perks. However, with home ownership comes with responsibilities and expenses. You don’t only need to pay enough cash for the down payment, monthly mortgage costs, Private Mortgage Insurance, and the closing costs, but other expenses such as home repair and maintenance, taxes tied to owning a property, homeowners insurance along with others costs and expenses.

Skipping A Home Inspection

The best way to check whether or not the house you plan on buying is worth every penny is with the help of a home inspection. With a thorough examination of the house, you can get an idea of the repairs and maintenance needed to be done. You won’t want to end up with a beautiful home only to learn that it has lots of issues that are expensive to fix.

Ignoring Other Mortgage Lenders

It is your right to shop for lenders and compare their rates, pros, and cons. Don’t settle on the first lender that approves your mortgage application. Get at least three quotes and check to see which one can offer the best rates and mortgage deals.