The video puts this in more visual terms, but with the exception of a few additional forms the FHA loan application process is similar to that of a conventional loan.
With new automation measures FHA loans may be originated more quickly than before. And, if you don’t prefer a face-to-face meeting, you can apply for an FHA loan via mail, telephone the Internet, or video conference.
While this video simplifies things to help you remember, except for the addition of an FHA mortgage insurance premium, FHA closing costs are similar to those of a conventional loan.
As of 2013, the FHA requires a single, upfront mortgage insurance premium equal to 2.25% of the mortgage to be paid at closing (or 1.75% if you complete the HELP program).
This initial premium may be partially refunded if the loan is paid in full during the first seven years of the loan term.
After closing, you will then be responsible for an annual premium – paid monthly – if your mortgage is over 15 years or if you have a 15-year loan with an LTV greater than 90%.
The video puts this in more visual terms, but your personal situation will determine the best kind of loan for you.
By asking yourself a few questions, you can help narrow your search among the many options available and discover which loan suits you best.
Lenders can help you use your answers to decide which loan best fits your needs.
There are some great tips in this video. Choose your lender carefully. Look for financial stability and a reputation for customer satisfaction.
Be sure to choose a company that gives helpful advice and that makes you feel comfortable.
A lender that has the authority to approve and process your loan locally is preferable since it will be easier for you to monitor the status of your application and ask questions. Plus, it’s beneficial when the lender knows home values and conditions in the local area.
Do your research, and ask family and friends.
Purchasing a home is exciting. Once escrow begins, the excitement can change to frustration, particularly if you are not ready for the closing costs that quickly accumulate.
Closing costs simply refer to the fees associated with various things associated with the escrow process in a real estate transaction. In the excitement of having an offer accepted for your dream home, you can easily lose track of the fact you are going to need to have some serious cash on hand to pay them. Many people make the mistake of only assuming they need the down payment money, and have to rush around town trying to come up with money for the closing fees.
Do yourself a favor, and discuss closing costs in advance with your real estate or mortgage person. And watch this video to have a good mental picture of the costs that you’re likely to incur.
What is title insurance and why should any buyer get it when purchasing a home (single family, townhouse, condo, apartment, or whatever format your home purchase takes)? Doesn’t the attorney or settlement company handling the closing see to it that you have a clear title? Isn’t this just another way for someone to siphon a few coins off a real estate transaction?
Title insurance prevents the property owner from suffering financial loss if, at any time during his ownership of the property, someone comes along who can show that they have full, or partial, ownership of the property instead.
A careful title search is done at the time property changes hands. On rare occasions mistakes are made anyway. Property can change hands in a number of ways including by deed, by will and by court action. Typically, these proceedings are recorded in different places. Searching the history of ownership to be sure nothing has fallen through the cracks is a tedious job that requires alertness, intelligence, and skill.
It is very likely that the value of your property will go up over the years. As time passes, these elements are likely to result in your home equity’s being your largest asset. Just how devastating would it be if you eventually discovered that someone else owned what you’d always thought was your home?
Do yourself a favor. When you buy a home, buy title insurance. And watch the video to understand the essentials.
Today, your first “showing” will be on the Internet – you’re watching this on the Internet, right?
Your price, listing description and PHOTOS determine whether someone will visit in person. Consider professional staging advice or help.
Prep for photos and video just as carefully as real visits.
Ask your realtor if they use a professional photographer
If they do look at prior photos and pick someone who understands the job.
Photos should make the most of your home’s features and give prospective buyers an emotional connection that invites them to visit in person.
Help them envision their lifestyle in the house not just the counters and walls.
If your realtor recommends video, just as with photography stage it carefully and hire a professional it will pay off.
And look over your listing when it goes live on a computer AND a mobile device to make sure it’s accurate, pleasant and compels people to show up.
Remember – your first showing these days will be on a screen.
Professional “staging” may include the exterior, but if you’re doing it all yourself, try the five things outlined in this video.
1 – Landscape & lawn.
That’s the first impression; make it a good one.
Mow, prune, edge and get rid of junk!
2 – Paint And Clean!
You don’t have to do the whole house, but the front door and lintels should either be painted or cleaned.
3 – Leaks & Repairs
Small visible problems can become large mental objections and change how someone feels about your house.
Fix ‘em beforehand.
4 – Pets
Some people have allergies and concerns.
Time for Fido to visit a friend.
You weren’t including him with the house anyway.
5 – Get Fresh Eyes
Have your realtor or a friend who’s willing to be candid tell you what you missed. Or pay a staging professional for a report.
We don’t really see familiar things well – so let them be your
‘test buyer’ so you can present the best first impression to the real ones.
What Is A Certificate of Eligibility, or COE?
The COE is the key document that verifies to lenders that someone is eligible for a VA-backed loan.
Servicemembers, Veterans and National Guard and Reserve members may apply online or through their lender; most lenders have access to the system and can verify eligibility IF the VA has records on file.
The VA also maintains a hotline for assistance.
Surviving Spouses can use VA Form 26-1817 to request determination of their eligibility for VA Loan Guarantees.
Your lender may be able to assist with processing or contact the VA for information this video did not address.
What Are The Major Types Of VA Loans?
Major Veterans Affairs loan programs described in this video include:
1) Purchase Loans.
These help eligible parties buy a home at competitive interest rates with little to no down payment and little or no private mortgage insurance.
2) Cash Out Refinance Loans which enable taking cash out of home equity to pay off debt, fund school or make home improvements.
3) Interest Rate Reduction Refinance Loans also called Streamline Refinance Loans can help veterans obtain lower interest by refinancing existing VA loans
Other programs include:
4) Native American Direct Loans to help eligible Native American veterans finance homes on Federal Trust land.
And
5) Adapted Housing Grants to help veterans with service-connected disabilities buy, build or modify a home suited to their disabilities.
Many states offer additional resources to veterans, too.
Talk to your home lender about your situation.