Only lenders approved by FHA can process an FHA loan for you. Luckily, there are thousands of FHA-approved lenders of all kinds: banks, mortgage companies, mortgage brokers, state finance agencies and credit unions. Here are some things you should think about when looking for a lender:
Save money by taking time to look around for the best prices, as you would when shopping for any large purchase.
Find lenders with lower interest rates and loan fees - you can afford more house that way
Talk with several lenders before you decide
Ask your real estate broker about lenders in the area and what they offer - but shop around for competitive costs - they can vary greatly and cost you more
Look in the real estate section of your newspaper - most papers list interest rates offered by local lenders.
Keep in mind that most lenders need 3-6 weeks for the whole loan approval process
The lender that offers the lowest interest rates may not be the most suitable for you. Always look at the entire loan package that the lender is offering. Ask yourself:
Is the lender charging you considerably higher fees? These include origination fees (fees the lender charges for creating the loan) and points (extra, pre-paid interest - 1 point = 1% of the loan amount).
Is the lender approved in your local area?
Do the lender's overall loan packages compare favorably with others?
Does the lender have a solid reputation?
Comparing the different terms offered by different lenders is especially important because FHA does not regulate or set the interest rate or discount points that a lender can charge a borrower. You (the borrower) and the lender work out the interest rate and any discount points. The lender can also charge you customary and reasonable closing costs necessary to close (finalize) the mortgage.
Another way to find an FHA lender is to use the FHA Lender Search Engine This search engine will give you a list of lenders with offices in the cities or states you select, or who are approved by FHA to do business in the state you designate. It is especially useful if you know the name of the lender you're interested in, but don't know how to make contact.
This search engine will give you a list of lenders with offices in the cities or states you select, or who are approved by FHA to do business in the state you designate. It is especially useful if you know the name of the lender you're interested in, but don't know how to make contact.
If you are looking for a real estate professional to assist you with a property transaction, you can visit any of these websites or search the Internet for others:
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