How to Prepare for the FHA Loan Application
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There are many ways that you can fill out the FHA loan application. Some people choose to do it in person at their lenders office while others want to do it from the comfort of their own home online. No matter the method you choose, the important thing is that you are prepared with all of the information necessary to get a pre-qualification. Without that pre-qualification, you will not know how much home you can afford or if you are able to refinance, if that is your goal. Before you start filling out the application, have these items ready.
How to Prepare for the FHA Loan Application
- 2. 6Things you need to consider before filling out the application form:
- 4. 2 Know your Credit Score Mostpre足qualificationprogramswillpullyourcreditfor youasthisisamajorcomponentofwhetherornotyou cangetqualified.Ifyouhavejudgments,collections,or latepaymentsreporting,nowisthetimetocorrectthem andbringeverythingcurrentsothatyoucangetyour creditscorebackup.
- 5. 3 Know your Housing Payment History Thelenderisgoingtoinquireaboutyourhousing paymenthistory.Doyoumakeyourpaymentson time?Ifyoudonothave12straightmonthsthatyour paymentsweremadeontime,youmighthaveahard timegettingapprovedforanFHAloan
- 6. 4 Know the Price or Value of the Home Thepurchasepriceofthehomeisthemostimportantpieceof informationwhenyouarefillingoutanFHAloan application.TheminimumforanFHAloanforaborrowerwith acreditscoreover580is3.5percentofthesalesprice.If yourscoreislowerthan580andabove500,youwillhaveto putdown10percentofthesalesprice.
- 7. 5 Know the Type of Home TheFHAprovidesloansonavarietyofdifferenttypesof homesincludingsinglefamily,condos,townhomes,and PUDs.Thetypeofpropertyyouplantopurchaseor refinanceplaysaroleinwhetherornotyougetapproved asitwillhelpdeterminethevalueandtherisklevelofthe home.
- 8. 6 Know your Income Type Ifyouareastraightsalariedemployee.Theywilluseyour last12monthsworthofincomeanddivideitevenly.Ifyou workoncommissionorbonusesoryouhaveseasonal/ part足timework,youmightnotknowexactlywhatfigurethe lenderwilluseforyourqualifyingincomeastheyhaveto weighallofthecostsintoequation.Ifyouareself足employed, youcanensurethatyouwillhavetoprovideyourtaxreturns, bothpersonalandbusiness,inordertogetqualified.