FHA Requirements
A Good Loan Checklist Creates a Smooth Application
Before you start the FHA loan process, be prepared to provide some information to your loan officer. Have it ready now to save time later.
- Address to your place of residence (past two years)
- Social Security numbers
- Names and location of your employers (past two years)
- Gross monthly salary at your current job(s)
- Pertinent information for all checking and savings accounts
- Pertinent information for all open loans
- Complete information for other real estate you own
- Approximate value of all personal property
- Certificate of Eligibility and DD-214 (for veterans only)
- Current check stubs and your W-2 forms (past two years)
- Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals
In addition, you will need to pay for a credit report and appraisal of the property.
As the buyer and borrower, you will have items on your checklist that are required by your lender, the seller, and even the title company.
The closing checklist covers all the fees to be paid, the information to be provided, and the disclosures to be signed before the title is conveyed to you. Having this checklist ready helps you stay on track as a buyer, and ensures that your closing goes the way you expect.
- IDENTIFICATION
All parties at the closing should have valid ID. - POLICY OF TITLE INSURANCE
You must pay for title insurance that guarantees the property is free of previous claims or liens. - INSURANCE
Before you can close on the property, you need to secure homeowner’s insurance, which insures the property in the case of damage. - CLOSING FUNDS
You must bring all funds agreed upon, in the form of a cashier’s check or via electronic wire.
Take the time to discuss the items on your checklist with your realtor, to make sure there is nothing you’re forgetting, and to have the peace of mind that after the closing settlement you’ll be able to move into your new home.
FHA Loan Requirements
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FHA Loan Articles and Mortgage News
June 9, 2023 - If you are interested in building or buying a home, there is an FHA loan that can help. But if you have never done so, you may worry about your ability to be approved for the mortgage. What can help a borrower’s chances when it’s time for the lender to decide whether to approve or deny their loan?
June 6, 2023 - What steps are the Biden administration and the banks taking? According to a DoD fact sheet, Federal banking agencies are in the process of issuing proposed guidance on how financial institutions may integrate fair appraisal controls into their current processes for a start.
June 3, 2023 - If you’re thinking about buying a home this year and you need to save more money upfront on your down payment, an FHA mortgage is an option to consider thanks to its minimum 3.5% down payment. There are other perks to FHA loans, as we’ll discover in this article.
June 1, 2023 - If you use an FHA One-Time Close construction loan to build a house from the ground up and don’t have a plot of land, you’ll need to purchase the land in conjunction with the construction loan. It’s an expense that may push up the cost of the loan, but a necessary one.
May 30, 2023 - Knowing the down payment rules before you start saving for your home loan may make the entire process more efficient, especially if you know you’re required to give the lender the sources of your down payment money and document it accordingly.
