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FHA home loans are for any financially qualified borrower. They are not limited to those in financial need and they are not restricted to first-time home buyers.  However, there are some things you should DEFINITELY do ahead of your home loan and things you should NOT do.

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FHA.com is a privately owned website, is not a government agency, and does not make loans.

Dos and Don'ts of the FHA Home Loan

March 30, 2021

Dos and Don'ts of the FHA Home Loan
FHA home loans are for any financially qualified borrower. They are not limited to those in financial need like certain USDA mortgages, and they are not restricted to first-time home buyers. You can buy a condo unit with an FHA mortgage, you can build a home on your own lot using an FHA One-Time Close construction loan, and you can refinance an FHA or non-FHA mortgage using an FHA loan.

No matter what kind of home loan you need--a purchase loan, a rehab loan, a refi loan--there are some things you should DEFINITELY do ahead of your home loan and things you should NOT do. Are you ready to apply for a mortgage? Not sure if you are ready? Keep reading.

FHA Loan To Do List: Double Check Your Math

Some borrowers do the math on their home loan early. They want to know if they can afford the loan in their current financial position and make choices accordingly.
 
But if your math is wrong on your early calculations you could be in for a nasty surprise later. Miscalculating your monthly mortgage payments is an easy mistake to make---did you run your numbers using a formula that includes ONLY principal and interest times the term of the loan?

If so, your mortgage calculation is wrong because it did not include consideration of any monthly homeowner’s association fees, property taxes, and other recurring costs associated with your loan. For best results, try using an online mortgage calculator that will prompt you for all the types of information needed.

Don’t Apply for New Credit Ahead of Your Mortgage Loan

If you apply for a store credit card, car loan, personal loan, payday loan, cash advance, or other credit, it may result in a hard inquiry into your credit report, which lowers your FICO score temporarily. Furthermore, the lender does not want to see that you have applied for other credit while applying for a home loan--it makes the lender’s job of justifying you as a good credit risk much harder.

Do Shop Around for a Lender

Some borrowers simply use the same financial institution they’ve been using for their savings accounts and personal finance issues. But does that lender really have the most advantageous terms? Shop around and find out, even if you don’t want to use any other lender. You can bring the results of your research to the lender you have now and ask them to match the better deal offered to you elsewhere.

Getting a home loan can seem overly complicated but these principles are fairly simple--these dos and don'ts of applying for a home loan can make your mortgage transaction a lot more worry-free.

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What Is an FHA Loan?
Using an FHA Loan Calculator
Meeting FHA Loan Guidelines Improves Your Chances

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