Why is an FHA loan so popular?
Getting off to the right start requires the right mortgage for your situation. With a government insured loan, you could be closer to home than you think. This is why Federal Housing Administration loans are so popular right now with new home buyers in search of a more affordable path to home ownership. Simply put, you don’t have to put off your dream another day, the door’s are open.
What is an FHA Home Loan?
Federal Housing Administration home loans offer a special opportunity for borrowers to become homeowners or refinance their existing Federal Housing Administration insured mortgage. FHA loans have more flexible and forgiving terms than other programs and in most cases can offer lower interest rates than conventional loans.
The step by step guide called “Simple Steps to an FHA Home Loan” ebook goes into all of the benefits and questions you might be thinking about or not have even thought about concerning the FHA loan process.
How to apply and what to expect from an FHA loan.
We have laid out step-by-step how to apply for an FHA loan, a list of what you will need to do, as well as what you should expect from us from every step of the loan process. If you are ready to see if an FHA loan is right for you, complete our quick quote form and a mortgage advisor will reach out to you within minutes.
- Speak with a Moreira Team Advisor
- Share general information about your income, credit and employment history
- Advise you if you pre-qualify and discuss your loan options
- Identify your specific lending needs and assist you in selecting the mortgage product(s) that best fit your financial needs and goals
When you choose the Moreira Team for your FHA loan financing needs, you’ll have the resources of an experienced FHA lender, as well as the guidance of a Seasoned Licensed Mortgage Advisor who will walk you through each step and help you understand the process.
The FHA Loan Application
- Submit a mortgage loan application online or over the phone
- Provide documentation supporting your job history, income, savings, investments, debts and property you wish to purchase
- Select a loan product
- Receive and sign the application documentation and regulatory disclosures electronically
- Identify any additional documentation that may be unique to your situation to accomplish a credit decision
- Deliver the complete application package electronically to the Moreira Team application processing team
When getting ready for a phone meeting with your FHA mortgage advisor, come prepared. Here is the information you will need to put together to get started:
- W2’s from the last two years
- Last two years of completed tax returns if you are self-employed
- Two most recent pay stubs
- Sales contract (Fully executed) If applicable.
- Proof that you have the 3.5% of purchase price for the down payment
FHA Loan Processing
- Be responsive via email or phone to the requests of the mortgage advisor assistant
- Provide the contact information of the home insurance provider you would like to use to insure your new property. This is setup prior to the underwriting stage
- Provide in some cases further information if the lender requires it
- Walk you through the loan processing steps and length of time required
- Schedule a time for the appraiser to come out to the home to complete the appraisal. Typically a fee of $375 – $450 is assessed at this point to complete the inspection by a licensed local appraiser
- The title commitment and all other verification’s (income, employment, etc) are ordered at this stage on your behalf
- Notify you with the appraisal results as soon as they are available. Usually 5 business days from when the appraisal inspection takes place
Once the appraisal is complete, the application will move to the underwriting stage
You will need to:
- Provide any additional documents requested from the underwriter once the loan is fully approved
- Review all employment, income, savings, investments and debt information
- Verify the information you provided on the application to your actual pay stubs, W-2 forms, tax returns, bank and investment statements, etc. to determine that you have enough income available for down payment and closing costs
- Verify the credit score report to determine outstanding debt, payment history and your current credit score
- Review the appraisal to confirm the true market value and determine if the property meets the loan requirements
- Determine that applicant meets all requirements of the term of the loan
- Deliver the Approval and identify any additional conditions needed to complete the underwriting of your loan
- Provide a copy of the approved appraisal
When you receive the Approval and request for additional documentation (if applicable) please review these request carefully in order to provide the right information. The loan advisor assistant will go through each item needed and answer any questions you may have.
Once the final items are all assembled the processor will submit the items back to the underwriter for final approval to move the file to the closing stage.[/column
Closing an FHA Loan
- Review the final settlement before closing to make sure everything looks good and to know what to expect the day of closing
- Attend the closing at your current residence for a refinance or at an attorneys office for a purchase by scheduling a time with our closing coordinator and sign all mortgage documents
- Provide final funds for closing via bank wire into the attorneys escrow account. This information will be provided to you by the closing coordinator
- Review and confirm all loan terms and closing conditions
- Identify a convenient date, time and location for the closing
- Schedule the closing with the title company
- Prepare and deliver the closing documents to the title company and coordinate final figures for closing
- Provide information on final funds needed for closing and the method of payment required
When you attend the closing, bring a legal form of identification (driver’s license, state I.D., passport, etc.)
Please make sure you wire the necessary final funds the day before or morning of closing to avoid any delays in the funding of your loan.