Below we have listed some simple steps to help Florida home buyers successfully get their FHA mortgage loan approval. Florida first time home buyers will find the information below especially useful.
You have to be aware of what you need do before applying as well as know the process of your application, the documents required, and finally, the closing which is where you are righteously given the keys to your new house.
Before Loan Application:
- Debt-to-income ratio
Careful analysis has to be done here. Lenders vary on precise amounts but a debt load that’s higher than 45 percent is risky for an FHA loan. You will need two years of employment preferably without a decline in pay.
- Credit check
It’s usually the small things that bite and bring you down so dig deep. Check your income, credit, as well as rent history (paying rent to parents to board in their home does not qualify, mind you) that might show up on a credit report. Get everything on the up and up, aiming for a clean record.
- Credit score
A credit score of 640 or better would be ideal for the 3.5% down payment FHA. If you came out of a bankruptcy or foreclosure, you would need to have maintained a perfect credit since then (4 years and 5 years respectively).
- Fill out the Buyer’s information request which tells the lender what you have and what you need. >>>
This will aid the lender in creating a customized strategy to aid you in attaining FHA mortgage approval. A FHA loan application will have to be filled out that detail everything about you, the borrower, which will be used in figuring out whether 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 your FHA loan application is preapproved, 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.
Note: The entire FHA loan application & closing process here in Florida takes about 3 weeks to a month to complete.
Questions? Please call or visit our main site at www.FiveStarsMortgage.com or just fill out the quick information request form on the right side of your screen.
Serving all of Florida Including Sarasota FL, Tampa FL, Fort Myers FL, Naples FL, Cape Coral FL, Key Largo FL and Key West FL
FLA, FHA loan approval application