Finding an FHA approved lender

Have you decided to get a home loan through the FHA? Are you now wondering where you can find an FHA approved lender? There are many lenders in every area of the country that are approved by the FHA to loan money to borrowers who are purchasing homes with an FHA guarantee. These lenders are the only companies that can get a loan for people through the FHA because they know all of their policies and guidelines.

To find an FHA approved lender in your area go to http://locator.fha.gov/cgi-bin/answers_hud_loc.cfg/php/loc/enduser/loc.php and enter your information. Then a list will come up of FHA approved lender in your area. After that you can start the process of getting an FHA loan.

The FHA does suggest that you think about some important factors when looking for an FHA approved lender. Some of these factors include:

• Shop for a lender. Don’t just go to the closest FHA approved lender; look at many of them. They all will offer you different interest rates and terms on your loan. They will also offer you different types of loans to choose from. This is why it is important to shop around for a loan so that you can get the best deal possible.



• When shopping for a lender, choose the one with the lowest fees and closing costs. This way you will pay less for your loan and can afford to spend more on your house.



• Talk to your real estate agent about lenders. They may be able to help you find a lender that can get you a really great loan with low fees.
• If you feel like the lender you do choose is taking too long, be patient. It can take up to two months to process a mortgage loan.



• Make sure that you look at the terms of the entire loan, not just the interest rate. You may see the initial monthly payment and want the loan, but if it is an adjustable rate mortgage then that payment will increase over time. You may want to take a slightly higher interest rate to ensure a fixed rate mortgage so that you know your payments will never go up.



• Also look at the terms of the loan, not just the interest rate. Is there a pre-payment penalty, and if so how much and for how long? How many points are being charged on the loan? Points are each worth 1% of the value of the loan, so if you are borrowing $100,000 then each point is worth $1,000.



• Don’t forget to research your lender and see what others have to say about them. Do they have a good record with the Better Business Bureau? What is their reputation like? Find out the answers to your questions before you proceed with the loan.



• The FHA does only allow certain fees to be charged to their borrowers, but they do not regulate the amount of points, interest rate, or amount of pre-payment penalty, so beware of these numbers when you choose your loan deal.

By following these guidelines from the FHA and considering all of the factors in getting a mortgage loan you will be aware of your needs and the terms and costs of your loan. For more information on FHA loans and approved lenders go to www.fha.gov