| All mortgages are designed with rights to protect you | | | | correction paperwork you should ask your title |
| on the deal. FHA mortgage loans provide you with | | | | company personnel. |
| rights as well. Before you apply for an FHA mortgage | | | | Before applying for the loan you may also want to ask |
| you will want to consider your rights. The biggest right | | | | these questions: |
| that seems to be overlooked in a mortgage deal is the | | | | 1. What is the monthly payment going to be? The |
| terms and conditions. | | | | lender should have a "ballpark answer" for you a few |
| In a closing there are several pieces of paper that go | | | | weeks into the FHA process. They must also tell you |
| into the loan packet. Most title company personnel | | | | this prior to closing day on the loan. |
| quickly explain each piece of paper that you have to | | | | 2. Who is covering the closing costs? Typically your |
| sign, yet they are usually in such a rush that you have | | | | loan requires you to cover the closing costs, but the |
| to force the time to look through the paperwork. In the | | | | costs can be wrapped into the loan. |
| United States most homebuyers do not even see their | | | | 3. Points exist in the world of mortgages regarding |
| mortgage paperwork until the closing has commenced. | | | | FICO scores. If your score does not reach 620, you |
| If this is the case with your FHA mortgage closing | | | | can purchase points to get the score there. You will |
| date, make sure you take the time to read the | | | | need to ask how much the cost for points will be. You |
| paperwork. You need to carefully read through each | | | | should also ask how they are attached to your loan. |
| paper presented to you at the closing. Do not sign if | | | | Typically in an FHA loan points are going to increase |
| you feel uncomfortable about the deal. | | | | the interest rate if you have to purchase them. |
| The lender does not want the deal to go awry, | | | | 4. Do you have a grace period for the monthly |
| therefore they generally will take the time to answer | | | | payment? The lender generally sets the monthly |
| your questions or concerns if you pose them. An | | | | payment to be due on the first of every month. |
| additional protection regarding FHA mortgage loans is | | | | However, most FHA mortgages do have a grace |
| a piece of paper you will sign stating that any | | | | period before it is considered late. If you are a few |
| corrections that need to be made can be made within | | | | days late there is generally not a penalty charge. If you |
| a certain time limit. For example if after the fact you | | | | are later than a few days you may see an extra |
| are reading through the papers you sign and find an | | | | charge of a few dollars. A half a month late can |
| error with a misspelled name, property name error, etc. | | | | increase the payment by $100. |
| the correction can be made by the company without | | | | Asking these questions and understanding your rights |
| filling out additional paperwork. For specifics on this | | | | helps you gain the best FHA mortgage loan for you. |