LAER Realty Partners



Posted by Team Edwards on 8/10/2017

When youíre ready to buy a home, thereís an anxious excitement thatís within you, making you feel like a small child on Christmas night. One question that is probably burned in your mind throughout the home search process is, ďHow long is this going to take?Ē 


If youíre a first-time home buyer, youíll likely be using some programs through the Federal Housing Administration, also known as the FHA. With any kind of home loan, thereís many variables that can affect how long the process will take. This can be due to many factors including the sellerís circumstances and the nature of your loan. 


When youíre securing a home loan backed by the FHA, you may wonder how long itís going to take for the entire process to finish from beginning to end. 


Variables That Affect The Loan Process


Underwriting

This is one of the variables that can fluctuate the most in the home loan process. Once you have found the home that you love, the lending process can take a few weeks beyond the point where you sign a contract. This part could entail many different steps that may become hurdles for you as a borrower. Your loan officer can also have an impact on the length of the process. Some loan people are just faster than others! 


Keep in mind that you canít close on an FHA loan until you get through the underwriting process. In the underwriting process for an FHA loan, it will be assured that you meet all of the criteria necessary for securing the loan, such as the standards that have been established by the HUD (Department Of Housing and Urban Development).      


Closing On An FHA Loan


While itís difficult to say the exact amount of time that it will take for a loan to process, thereís some things you can do ahead of time to prepare. If you apply for an FHA loan before you have even found a home, youíll expedite the process a bit. If you have been pre-approved prior to making an offer on a home, youíll likely be in a better position than if you havenít yet met with a lender. This will also make the underwriting process move a bit faster for you, provided there arenít any major red flags on your paperwork.  


FHA Appraisals


FHA appraisals do differ a bit from appraisals for a home with a more conventional loan. With an FHA appraisal, the appraiser must look for things in two main areas including any health and safety issues and determine the market value of the property as well. This process will most likely only take a few days. Part of the appraisal process may include the appraiser looking at similar properties in the area in order to get a bit of a comparison on the value of the property. 


Can You Speed It Up?

If you have everything in order before you even decide that youíre ready to go on the house hunt, youíll discover that the process of securing an FHA loan will be a bit smoother. Talk to a lender before you start the process so you can familiarize yourself with the requirements. Once you can present the lender with the right documents, theyíll be able to do their job with little intervention on your part.




Tags: loans   FHA loans  
Categories: Uncategorized  


Posted by Team Edwards on 7/20/2017

If you are in the market for an FHA loan, you are probably happy to get many benefits from the loan like a good interest rate along with the need for a low downpayment. While these loans can be very helpful on the path to homeownership, they can be complex. Itís a good idea to hire a realtor who is well-versed in the ins and outs of FHA loans and standards. A real estate agent can help you to find the right property to suit your needs and meet the standards the FHA loan will require.    


Do you know what youíre getting into when it comes to shopping for a home? The FHA sets the rules for how homes get approved for an FHA loan and under what standards. These rules exist because the FHA is insuring the loan, but the organization is not directly funding the loan itself. This insurance protects the lender if the loan is defaulted on. An inspection appraisal report must be completed on each property. The appraiser is required to be an FHA approved appraiser to complete the job.


Loans


There are limits on how much of a loan you can get when it is FHA-backed. This is because the FHA will only insure a loan amount up to this limit. This means that you wonít be looking at high-end homes because the limits are usually quite restrictive as to the type of property you can get. This holds true unless you can afford a larger downpayment than the standard 3.5% required by the FHA.  


Condition Of The Home


FHA-backed home loans can be rejected due to the poor condition of the home. If an appraiser says that the home is unsafe or hazardous to occupants, the loan will be denied. The assessment of the homeís condition is very important to the lenderís decision to grant the loan. The lender may even require that certain improvements be made before the loan can be approved. These improvements can include pest treatments, fixing leaks, or other damages that are deemed hazardous.


The Property Itself


The FHA also sets guidelines for the type of property that you can get. A condo must be in a HUD approved complex, for example. If you want to research FHA-approved condo complexes, you can search right on the HUD website. Each complex meets the Department of Housing And Urban Developmentís standards for financial stability, hazard, and liability insurance. If youíre looking at manufactured homes, these are also held to certain standards. The manufactured home must be permanently attached to the foundation, have the ability to be taxed as a real estate property asset, and have been constructed before June 15, 1978.   


         






Tags: Buying a Home   FHA loans  
Categories: Uncategorized  




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