Reminders When Choosing an FHA Lender

Paper with words FHA loanThe Federal Housing Administration (FHA) is willing to help prospective homeowners get the house of their dreams through mortgage lenders. However, they cannot accommodate all lenders, especially those who are not truthful about their finances.

With the recent issue about falsifying FHA lending docs in Pennsylvania, it's understandable that residents of Utah are more careful when choosing a lender. Here are some reminders: 

Know the Terms explains that transacting with an FHA loan lender means being introduced to different loan terms. Some of them may seem more favorable to your current finances than others, but you have to look at the total amount you will be paying for the property compared with monthly payments. Ask questions. It's how you know that the lender you're dealing with knows what they are doing. You will also see how professional they are when dealing with questions. 

Read the Papers 

Any problems with a lender offering FHA loans will make it to the newspaper because it affects thousands of citizens. There are also online press releases about a mortgage company's achievements. You will easily see if the company is performing well or doing poorly based on the news associated with them. 

Ask Around 

Nothing beats peer reviews when it comes to building trust. You feel like you can trust a company if it was recommended to you by someone you know. If you're not sure about a mortgage company's reputation, ask previous clients that are in your neighborhood. You may ask your family, friends, or even colleagues. If they have a negative experience with the lender, you can take that into consideration. If they receive glowing recommendations from your friends, then they could be worth the shot. 

Getting a home loan is made more complicated by the fact that not all companies are transparent about the process. Make sure you can trust the company you are transacting with.