How To Apply for FHA Loan

Some first time home buyers are concern about the process on how to apply for FHA loan. If you are one of these individuals, don't worry, as long as you meet the qualifications and requirements needed, you are one step closer to owning your first home.

Steps to Apply for a FHA Loan

1. Gather the Documents Required

To make your process hassle-free and without delay, the first step you must to do to apply for FHA loan is to collect the necessary information and paperwork needed. The basic information required are personal, employment, savings, and credit information. Begin to gather documents such as your recent two years tax returns, bank statements, social security card and bill statements. These are just a few on the list of required papers.

2. Find an FHA Lender in Your State

Each state has a list of mortgage brokers or lenders where you can apply for FHA loan. Go online and check, This US Department of Housing and Urban Development website provides the complete lists of approved FHA lenders. If you do not know any lender in your area, leave the "lender name" blank and type in your city or county and the state you are in. "Clicking" the search button takes you to the list of accredited companies providing FHA loan.

3. Shop for Loan Lenders

Now that you have the list in your hand, the next step to apply for FHA loan is to shop for lenders. Why shop and not just choose whatever name you find appealing on the list? Each company varies in mortgage rates, payment terms, and policies. Some firms offer lesser interest rates than others. Be sure to note down the positive and negative points each company offers. It is much better if you request print-outs of their loan program and policy. That way, you have the tools to compare and see which offer is favorable for you.

4. Seek Advice When Necessary

Do not rush to choose a lender and apply for FHA loan when you are confuse or have doubts after examining the loan programs of each company. Seek advice. Friends and family members who have applied for home loans before are good sources. Consider their references and check if you have these lenders in your list of candidates.

5. Pick the Best

After doing all this process, decide which lender best meets your loan application needs. Then, it is time to begin the steps to acquiring the key of your new home. After all the hard work you put through to own your dream home, trust your decision in choosing the right FHA loan provider.

Check for more information about FHA loan application.