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Finance

Is FHA Loan Right For You?

Getting a mortgage is one of the biggest decisions you’ll make in your life. It can be daunting, especially if you’re a first-time home buyer. And if you’re not familiar with the ins and outs of getting approved for a mortgage loan, it can be hard to know where to start.

What Are FHA Loans?

FHA loans are insured by the federal government, giving them a low-risk factor for lenders. This means that FHA loans are less risky than conventional loans. Additionally, lenders assume less risk with an FHA loan than they do with conventional loans. Because of this, you can get approved for an FHA loan in Ohio with a lower credit score and smaller down payment than you would need for a conventional loan.

FHA Loans Compared To Conventional Mortgages

FHA loans have a minimum credit score of 500, which is significantly lower than the conventional loan’s minimum of 620. This means that you can get an FHA loan even if you don’t meet all of the standards set by conventional lenders. The agency also offers other benefits like low down payments and flexible terms, you can apply for an FHA loan with as little as 3.5% in down payment, whereas conventional loans require at least 10% or 20% for a home purchase.

FHA Loans Allow First-time Home Buyers To Put Down As Little As 3.5%

The minimum down payment for an FHA loan varies based on the loan. For example, for a purchase loan, the minimum down payment is 3.5%. This means that you would have to pay at least 3.5% of the purchase price to get your loan approved. On the other hand, if you’re buying a home that doesn’t need any repairs or upgrades (or if those repairs and upgrades will be paid out of pocket), then you can put as little as 3% down.

The government considers this type of low-down payment risky and wants buyers to make sure they can afford their monthly payments before committing to a mortgage by making sure they have enough “equity” in their homes, that is, how much money they would receive if someone bought their houses from them without paying them any money up front?

FHA Loans Have Flexible Credit Requirements

Although FHA Loans can be used by any borrower, they are most beneficial to those who might not meet the strict requirements of a conventional loan. For example, if you have a lower income or credit score than what is required by conventional lenders, you may still be able to get an FHA Loan. There are plenty of FHA Loans Ohio lenders. Just do your research on the company before you apply for a loan.

Conclusion

Are you a first-time homebuyer with a low credit score? Are you worried that your low income will make it difficult to qualify for the best rates and terms? If so, an FHA loan may be right for you.

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Finance

Searching for a financial advisor

When in the search for a financial advisor, your main focus actually is on the person you will work with. You are actually looking for an individual as your financial advisor. But never dispense the fact that the company or firm for which he or she work is one great indication of his or her reliability.

Test them as what most veteran clients do. Most long-term investors judge a new company and the team behind them by the willingness to provide you highly valuable and quality information. This is usually for free even before your commitment with their service. Most trustworthy companies even offer to customize a sample financial plan to you as a prospective customer for free as well.

Most trusted companies also have financial advisors and planners that will provide you with their credentials even before providing you with a sample financial plan. This is just strategic and timely for them to build a rapport with you and solidify your trust with them. You can surely ask them further what it means to have a certain designation or certification. Ask them some experience they have and what they had to do to earn such title.

Moreover, find out, after your first meeting with your financial advisor, what organization issued the credential. Take the time to contact the organization just to verify whether the professional you are considering for a financial service did truly earn the credential. In addition, it also would give you more information to ask for, just for the sake of validation, whether that professional continues to be in good standing with the organization.

It is not really impossible to get the best financial information for your needs. It only requires you to take a little more effort on your end to be sure with your decisions. Always go with a reputable firm in all cases. Ask for some free yet quality information up front even before starting to commit yourself with their service. Best Financial Planner In Charlotte NC surelly won’t mind.

By simply taking these advices, you can prevent yourself from committing a decision you will regret later. After all, it is money we are about here. Go with the best and verify. That way, you stand an excellent chance of securing a bright financial future.