Sumit Chakrabarti

Blog- Keywords: No Fee Mortgage Lender Client: A U.S-based Mortgage Facilitating Company How to Get an FHA Loan for a New Home and How to Refinance You might have heard numerous stories on distressed homebuyers and a dwindling housing market in the US over the past couple of years. With strict bank regulations on lending, and lesser number of loan approvals, things have not been the same. People, who seek loans for buying a home or who want to opt for refinancing, often struggle to find a reliable lender. Why there is so much speculation about the lending market The US economy has been sluggish and stuck in a financial stalemate for some time now. On top of it, the government has enforced stricter regulations for banks and financial institutions. Well, it has been done to slow down the flow of funds into the market. Due to such lending restrictions by banks, people seeking loans look for options such as mortgage companies and agents that offer flexible and convenient lending options. The mortgage lending market, however, is highly competitive and choosing the right one is not easy. Making a wrong choice could be costly. Hence, it is important to choose a mortgage company that provides a sense of comfort, security, and flexibility. Will an FHA Loan fulfill your requirement? A Federal Housing Administration (FHA) loan is a loan option that is backed with insurance. The insurance protects lenders from losses that they may incur from defaulted loans. It is convenient for the applicants because they can get loans at attractive interest rates. The following are the benefits of an FHA loan: 1. No Maximum Loan Limit There is no maximum limit for availing a loan. Income-to-debt ratios and credit score determine the loan amount. If these determinants are positive, applicants can borrow more money. 2. Prequalification Prequalification criteria can help you understand how much loan you can get. You need to provide your personal financial information such as bank statements, W-2 forms, credit report and payroll breakdowns for evaluation. 3. Down payment Check how much down payment you have to make. Applicants can get FHA loans with down payments as low as 3.5% and lower (depending on credit score). Also, there are prepayment penalties with an FHA mortgage. Things to consider for choosing a lender You can consider the following as the determining factors when choosing a lender: Low Interest Rate – The mortgage company that helps one get a loan at low interest rates. No Fee for Loan – Look for a no fee lender that doesn’t charge loan processing fees. Convenient online application facility, expert advice, and checking progress on loan processing. Faster and simple processing for closing a loan. The above factors ensure an organized, consistent and effective loan processing. Before selecting a lender, you can check various sources and do extensive online research. After shortlisting a few lenders, try to find out about their fees, lock-in periods, and qualification requirements by exploring their websites or talking to them over the phone. # # #