Steps to obtaining an FHA Mortgage when buying a home……
Step 1: Get your FHA loan pre-approval BEFORE you shop for a home and understand common fha loan requirements for your loan:
One thing to realize when you are getting any kind of loan is how much your payments will be.
With your FHA loan the best thing you could do is start by speaking with a loan officer who is experienced
with these types of loans to discuss what the likely interest rate could be (they change daily), and if there are any
loan costs that you need to be aware of. Have them check your credit and income to make sure you will qualify for the loan.
I see many “would be buyers” that ignore this step then spend months looking at home after home. Then they put a contract on their dream
home only to find out their payments will be too high for their comfort level, or they can’t qualify for the loan. I still don’t understand
why people put the cart before the horse like this, but even after explaining this to buyers some still do it anyway.
It is a terrible way to waste your time, and getting a pre-approval is usually free…just do it.
Step 2: Begin your home search:
Once you have your pre-approval and are comfortable with your loan amount, you can begin to look for homes that will qualify for an FHA loan.
That will include keeping in mind the FHA loan limits in your area which your mortgage professional should be able to tell you, and the
condition of the home which must be “habitable” in FHA’s opinion. This may also include making sure a condo complex is “FHA approved” if you
are in the condo market.
Step 3: Make an offer and begin the loan process:
After you’ve identified a home that meets the above criteria make your offer, and once accepted, begin the loan process.
This will include and home inspections, surveys, and your lender will order and FHA appraisal for the home.
The property MUST appraise for the sale price or higher in order to obtain your loan.
If the fha appraiser notes any needed repairs as
a condition of the loan be aware that they will need to be repaired BEFORE closing. It would be a good idea to note any repairs that might
come up BEFORE you make your offer and how you might be able to deal with them. Most FHA appraisers will also require at least a working refrigerator
and range in the property. That can become an unexpected speed bump so if the home doesn't have them so make arrangements to have them in the home
for the appraisal. This is probably one of the most common fha loan requirements that keep people from being able to buy foreclosures!
Step 4: Head to the closing table:
At this point all FHA loan requirements have been met and you are ready to actually buy the home.
Always double check the numbers on the closing statement (HUD-1) to verify accuracy and also the note you will be signing in
addition to any other important documentation. This is a big deal so it may be a good idea to have an attorney review docs before signing.
