You’ve heard about FHA loans and you are interested, but how do you get them? Once you know that this is the type of loan for you, you’ll need to go through the pre-approval process. This process is similar to that of a conventional loan (a non FHA insured loan.) The process is simple and straightforward, and puts you on track to buy a home quickly.
Before You Look For a Home
It’s beneficial to go through the process of pre-approval for a loan before you head out to find a home. This way, you know that the home you fall in love with is within your approved loan limits. With FHA loans, the process is very simple.
The first step you’ll need to take is to contact a lender that’s pre-approved for FHA lending. With them, you’ll work out the qualifications for the loan.
This may include:
- Getting a credit check to determine what your credit score is; while
you won’t need to have great
credit, you will need to have decent credit to qualify for the loan.
- Verifying your employment; you’ll need to show the lender you have
steady employment that pays enough to pay your current
obligations as well as your new mortgage payment comfortably.
- All collection accounts will need to be paid off in full, if you have
- You’ll need to show proof of identity as part of the process as well.
Once this is complete, the FHA approved lender will let you know several things. First, they’ll let you know if you qualify for a home loan based on the information you’ve provided. This is called pre-qualifying for the loan. Once you pre-qualify, you can start looking for the home. However, do take it one-step further as soon as possible. You want to be pre-approved for the loan. To get to this point, you simply need to verify all the information you’ve provided to the lender. You’ll do this by sending copies of your identity, paycheck stubs and other requested information. Once all of this information is verified, you’ll be pre-approved.
During this process, be sure that you follow through with your FHA loan lender. Provide them with accurate information that fulfills all of their questions to the best of your ability. Also, be careful with your credit during this time. Use it wisely to make you an attractive borrower to the lender.
The process of getting an FHA loan isn’t too difficult, but it can be made easier if you are proactive and get pre-qualified before even finding the home you wish to purchase.