The Truth About Applying For Mortgage Financing
Paul Fegan’s “PIF’s Article on Applying For Mortgage Financing” is well worth a read. It touches on many of the common myths and misunderstandings about mortgage financing. PIF’s article on applying for mortgage financing makes a good point about getting pre-approval from FHA. Still, PIF’s failure to mention that the FHA Guarantee Fund only deals with private mortgage financing makes the article problematic for many homeowners. If you’re going to get pre-approval from the FHA, then you may as well use the PIF to get the lowest interest rate.
The reality is that there are many other options out there besides the PIF and they can all work if you’re willing to put in the time and effort. For example, when I tried to apply for my PIF loan through CMS back in the mid-1990’s I had to spend hours every day looking at charts and forms. After about a month I got a letter in the mail saying that I was pre-approved and would receive that same funding if I signed up for an FHA Loan.
Let me rephrase that. When I applied for my PIF’s mortgage financing I did not receive one single letter from CMS. I had to call them several times before I got someone to speak with me on the phone and I still didn’t receive pre-approval. So then I did some research and I found out that there are many other mortgage financing companies out there. There are many more out there than the two main ones, FHA and VA.
Another myth that has been shown to be completely false is that you have to wait until you’re nine or ten years old before you can apply. This myth has also been shown to be completely false. In fact, according to CMS the maximum time frame to get pre-approved is twenty-one. You can apply as young as thirteen!
If you’re thinking, “Great! This is exactly what I need.” Then you’re going to be pleased to know that it is completely untrue. No matter what your age is, there are many mortgage financing programs for you regardless of how old you are. If you live in any area where these are available, don’t delay, go out, and get one today!
One myth that is very popular is the one stating that you cannot be pre-approved for this type of loan. The truth is you can be pre-approved if you meet certain criteria. For example, your credit score can be checked. But you are not limited to only one type of lender. In fact, there are multiple lenders who will approve you. So don’t let that myth get away from you.
Another myth is that it costs money to be pre-approved for this type of mortgage financing. The truth is, if you do your research you will discover that there are many mortgage lenders who will accept your application for as little money as possible. So if you don’t like spending money upfront, then don’t do it! All you have to do is find the lender who will provide you with the best terms and give you the lowest interest rate!
So you know all about applying for mortgage financing. Now you just need to learn about getting pre-approved. The best way to do this is to go to a reputable lending institution that has online access and does its own mortgage application. Find one that will let you complete one application online. This way, you won’t have to waste time filling out paper applications at different financial institutions.