It always helps to be well-informed in order to increase your chances of successfully getting your FHA loan approved. Buyers should be aware of what steps should be taken before and after applying.
- Credit check
It’s usually the little things that bring down your credit score. Check your income, credit, as well as rent history that might show up on a credit report. Get any of the little hiccups cleaned up before applying. Please also save any evidence or paper trail of newly satisfied delinquent accounts. A credit score of 600 or better would be ideal for the 3.5% down payment FHA. If you came out of bankruptcy or foreclosure, you would need to have maintained a perfect credit since then (4 years and 5 years respectively).
- Debt-to-income ratio
Careful analysis has to be done here. Mortgage lenders vary on precise amounts but a debt load that’s higher than 41 to 45 percent (of your gross income) is risky for an FHA loan. You will need two years of employment without a decline in pay.
- Call us or submit the Quick Request Form at the top of this page. The loan specialist will start the application with you, this process takes about 15-30 min to complete. During this time the loan officer will ask basic questions and determine if you’re eligible for a loan or otherwise. The rate and the terms of the loan will also be determined largely by the information in your application form.
- In the event the application is pre-approved, you will get the disclosure documents which are essentially initial loan documents that have all the minute details regarding the terms, interest rates, cost and payments of the loan.
- This has to be signed and returned along with other documents such as your bank statements, IDs, references, etc., for verification purposes. Usually, these documents are prepped and readied well before the loan application is submitted to the lender.
- The processor reviews all verifying documents and requests for missing or any additional documents from the borrower if need be.
- Upon completion, the documents are then submitted to the underwriter.
- The underwriter will send a “Conditions List” of additional missing items or documents to the buyer.
- Once the buyer completes the needed items on the list, it’s sent back to the lender for final approval. A closing date is then set pending a satisfactory appraisal and home inspection.
Note: The entire process from application to closing takes about a month on average.
Please contact us above with any questions or to get started today. Please also learn more about FHA loans here.