The FHA really needs to wake up and join the 21st Century when it comes to loan documentation. According to this article from MortgageLoan.com the MBA is encouraging the FHA to reduce their bureaucracy by streamlining with electronic signatures. If you’re considering an FHA home loan to buy or refinance there are several things you need to know about the costs associated with these loans. You can read more here:
The Mortgage Bankers Association is urging the FHA to simplify the mortgage application process by allowing the use of electronic signatures on all documents used in originating FHA home loans. Doing so would help streamline the mortgage origination process, according to the MBA, allowing loans to be closed more quickly while eliminating lost paperwork and possibly reducing costs for borrowers.
I’ve never cared much for FHA home loans to purchase or mortgage refinancing because of the requirement that you carry Private Mortgage Insurance. Mortgage insurance is expensive and only protects the homeowner from certain loses if you default; it does nothing whatsoever for you but cost you money.
That’s what’s great about VA home loans if you’re a veteran, they don’t require Private Mortgage Insurance and you can as many VA mortgages as you like to buy or refinance your home.
There are a number of common mortgage mistakes you need to be aware of before your mortgage refi; overpaying fees or taking one of those no cost refinance offers can cost you thousands of dollars from unnecessary markup and junk fees. You can learn more about getting the best refinance rates for your next home loan without overpaying by checking out my free Underground Mortgage Refinancing Videos.