How to Apply for an FHA Home Mortgage
FHA home mortgages are loans guaranteed by the Federal Housing Administration and offer home buyers an option of a mortgage with a low down payment and a low interest rate. The FHA is one of the largest insurers of residential mortgages in the United States. Many private lenders have access to FHA mortgages, so the home buyers should ask any lenders they are considering if they are FHA approved mortgage lenders.
Qualifications for an FHA home mortgage
There are a number of factors that are considered in qualifying for an FHA loan, including credit scores, income, employment history, assets, and debt-to-income ratio. The FHA is less stringent on credit requirements that other mortgage lenders; however, people with very bad credit may not be able to be approved for an FHA mortgage loan. The FHA is flexible in its income requirements, but loan payments cannot exceed more than 35 percent of the applicant's gross monthly income. One other requirement is that the buyer has at least three month's worth of available funds in reserve.
Choosing an FHA mortgage lender
There are many FHA-approved mortgage lenders throughout the United States. If the home buyer wishes to apply for an FHA home loan, he should choose a lender whom he feels comfortable in dealing with. Reputation and customer service are very important in choosing which FHA-approved mortgage lender to use. Check with the Better Business Bureau to see if any complaints have been filed against the lender and how the lender resolved these complaints. It is better to check up on a lender before the loan is closed as it may save the home buyers from headaches later if they need service on their loans. Ask questions of the lenders. Any lenders who deal with the public regularly should not mind answering questions about their organizations and what type of customer service they offer.
The FHA application process
Financial documentation the borrower should have on hand when completing the FHA mortgage application include the two most recent years of tax returns, the last two pay stubs from work, and the last three months bank statements. Other personal documentation will also be needed such as driver's license, social security number; and for people who are divorced, a copy of the divorce decree and any orders regarding the payment of child support.
FHA Approval
The FHA home loan approval process begins with reviewing the application completed by the borrower. Based upon the information provided, the lender will let the buyer know if he is approved and how much he is pre-qualified to borrow. The amount a buyer is pre-approved for will depend in part upon the mortgage limit for his geographic location. Borrowers cannot be approved for more than the limit for their area. Once an approval letter is received by the borrower, he can then approach a realtor and find the home of his choice if he has not already decided on a home to purchase.
FHA Loan Closing
The final step in the FHA loan process is for the borrower to go to the mortgage loan closing, where he will sign numerous required documents provided by the lender. Some of these documents include the promissory note, trust deed, FHA specific documents, and several disclaimer statements. Any closing fees agreed to be paid by the buyer must be paid at the time of closing.
Millions of people have been approved by FHA to receive FHA home mortgage loans. They are a reputable lender who provides first-time or low-income home buyers a means of affordable home ownership. These loans are backed by the federal government adding a sense of security and peace of mind for the home buyer.
Qualifications for an FHA home mortgage
There are a number of factors that are considered in qualifying for an FHA loan, including credit scores, income, employment history, assets, and debt-to-income ratio. The FHA is less stringent on credit requirements that other mortgage lenders; however, people with very bad credit may not be able to be approved for an FHA mortgage loan. The FHA is flexible in its income requirements, but loan payments cannot exceed more than 35 percent of the applicant's gross monthly income. One other requirement is that the buyer has at least three month's worth of available funds in reserve.
Choosing an FHA mortgage lender
There are many FHA-approved mortgage lenders throughout the United States. If the home buyer wishes to apply for an FHA home loan, he should choose a lender whom he feels comfortable in dealing with. Reputation and customer service are very important in choosing which FHA-approved mortgage lender to use. Check with the Better Business Bureau to see if any complaints have been filed against the lender and how the lender resolved these complaints. It is better to check up on a lender before the loan is closed as it may save the home buyers from headaches later if they need service on their loans. Ask questions of the lenders. Any lenders who deal with the public regularly should not mind answering questions about their organizations and what type of customer service they offer.
The FHA application process
Financial documentation the borrower should have on hand when completing the FHA mortgage application include the two most recent years of tax returns, the last two pay stubs from work, and the last three months bank statements. Other personal documentation will also be needed such as driver's license, social security number; and for people who are divorced, a copy of the divorce decree and any orders regarding the payment of child support.
FHA Approval
The FHA home loan approval process begins with reviewing the application completed by the borrower. Based upon the information provided, the lender will let the buyer know if he is approved and how much he is pre-qualified to borrow. The amount a buyer is pre-approved for will depend in part upon the mortgage limit for his geographic location. Borrowers cannot be approved for more than the limit for their area. Once an approval letter is received by the borrower, he can then approach a realtor and find the home of his choice if he has not already decided on a home to purchase.
FHA Loan Closing
The final step in the FHA loan process is for the borrower to go to the mortgage loan closing, where he will sign numerous required documents provided by the lender. Some of these documents include the promissory note, trust deed, FHA specific documents, and several disclaimer statements. Any closing fees agreed to be paid by the buyer must be paid at the time of closing.
Millions of people have been approved by FHA to receive FHA home mortgage loans. They are a reputable lender who provides first-time or low-income home buyers a means of affordable home ownership. These loans are backed by the federal government adding a sense of security and peace of mind for the home buyer.
