How to Prepare for the FHA Loan Application
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Transcript of How to Prepare for the FHA Loan Application
1Know your Goal
The first thing you need to do is know
the purpose of the FHA loan. Are you
looking to purchase a home or
refinance an existing home?
2Know your Credit ScoreMost prequalification programs will pull your credit for
you as this is a major component of whether or not you
can get qualified.If you have judgments, collections, or
late payments reporting, now is the time to correct them
and bring everything current so that you can get your
credit score back up.
3Know your
Housing Payment HistoryThe lender is going to inquire about your housing
payment history. Do you make your payments on
time? If you do not have 12 straight months that your
payments were made on time, you might have a hard
time getting approved for an FHA loan
4Know the
Price or Value of the HomeThe purchase price of the home is the most important piece of
information when you are filling out an FHA loan
application.The minimum for an FHA loan for a borrower with
a credit score over 580 is 3.5 percent of the sales price. If
your score is lower than 580 and above 500, you will have to
put down 10 percent of the sales price.
5Know the Type of Home
The FHA provides loans on a variety of different types of
homes including single family, condos, townhomes, and
PUDs. The type of property you plan to purchase or
refinance plays a role in whether or not you get approved
as it will help determine the value and the risk level of the
home.
6Know your Income Type
If you are a straight salaried employee. They will use your
last 12 months’ worth of income and divide it evenly. If you
work on commission or bonuses or you have seasonal/
parttime work, you might not know exactly what figure the
lender will use for your qualifying income as they have to
weigh all of the costs into equation. If you are selfemployed,
you can ensure that you will have to provide your tax returns,
both personal and business, in order to get qualified.
Best FHA LenderBestFHALender is a onestop shop
offering useful information about FHA
loans and enabling customersto shop for
multiple lenders.
Finding the
CLICK HERE TO LEARN MORE
Justin Mchood He is Americas Mortgage Commentator
and has been providing Mortgage
commentary for over 10 years.
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