Los Angeles, Ca (PRWEB) January 26, 2013
Red Blue Realty knows that applying for a loan, and specifically an FHA loan can involve considerable effort on the part of a home buyer or a home owner seeking to refinance. The process, however, is fairly straight forward. The steps involved to apply for an FHA loan
1. Pre-qualifying the applicant
2. Reviewing and choosing the mortgage programs and rates
3. Filling out an application for the chosen loan
4. Waiting for loan processing
5. Providing required documentation
6. Reviewing credit reports
7. Receiving a home appraisal and appraisal outcome
When a potential buyer starts to apply for an FHA loan, the first step is pre-qualifying. This means that the lender needs to gather information about a borrower’s debts and income to determine just how much a borrower can pay for a property. The FHA has a variety of different programs, so the buyer should apply for each type of loan he or she may be interested in obtaining.
The next step is to look at what type of mortgage program a borrower may wish to consider. A fixed mortgage with locked-in rates is one option, an adjustable or ARM loan is another. The latter is more viable if a potential owner plans to move or refinance soon. An experienced mortgage lender can assist the borrower in regard to choosing the best program or programs to apply for.
Red Blue Realty’s professionals know that the next step in the process to apply for an FHA loan is the application itself. This is the true beginning of the loan process. In the application process, the buyer will discuss fees and closing costs; the information will be provided by the lender within three days of application submission.
At this point, loan processing actually begins. The loan processor will order a credit report, an appraisal report, and a title report for the borrower. The processor also verifies bank statements and deposits, and looks at any credit issues such as late pays, collections, or judgements that may require addressing.
Certain documents are always required when applying for an FHA loan, including pay stubs or W-2's, or tax returns if self-employed. To make the process faster, borrowers should provide bank and mutual fund statements for the three months prior to application.
It may also be prudent for a borrower to apply for a copy of a credit report in order to address any potential negative credit issues on the report. Discuss any credit problems honestly with a lender.
Paying bills on time, keeping credit card balances low, and applying for credit conservatively will all help with credit issues.
Lastly, an appraisal of the property will define the value of a property. Cost, income, and comparison in regard to properties are all methods of assessment, with income valuation utilized in regard to rental properties.
At this point, with all the necessary paperwork completed and in the hands of the lender, the only step left is waiting for the outcome of the on-going loan processing. Red Blue Realty’s experts assert these are the steps necessary to apply for an FHA loan.
Phone Number: 1-(855) 66-RBREALTY or 1-(855) 667-2732