When you’re looking to get a loan from a mortgage lender on Long Island, you have the option to go to any one you want. In fact, you may find yourself overwhelmed by the choices you have. The more available lenders near you, the more you should contact to discuss your financing options.
But this isn’t the case when you are interested in applying for a Federal Housing Administration (FHA) loan.
The FHA insures and regulates these loans, but the U.S. government agency is not actually providing them to borrowers. Instead, those who are inquiring about FHA loans need to find an FHA-approved lender. If a lender or a broker isn’t approved by the FHA, then it does not have the ability to issue these types of loans to borrowers. As a result, you cannot just pick any lender and apply for an FHA 203(k) rehab loan, for example.
How to Determine If a Lender is FHA-Approved
FHA-approved lenders have an advantage over other lenders because they provide borrowers more financing options. FHA loans may not be the best choice for everyone, but FHA-approved lenders can help those borrowers who would clearly benefit from them, as well as borrowers interested in other types of loans.
These lenders want borrowers to know about their ability to provide FHA loans. Therefore, they often share this information about themselves on their websites, through marketing campaigns and direct conversations with potential borrowers. However, visiting each company's website and/or contacting each one can be time-consuming, especially when there are many lenders to choose from in your area.
Long Island is the home to many lenders. You can visit the official U.S. Department of Housing and Urban Development website and search for a lender in your area to find out which ones are FHA-approved.
Bear in mind that you should still contact more than one lender because the fees and the interest rates may vary depending on the lender, not on the loan. By speaking with multiple mortgage loan originators from different lending organizations, you will learn about all the loans they offer and which one makes the most sense for you. Plus, you will understand how much each lender would require you to pay in terms of interest rates and other expenses if you were to get a mortgage from them.