A Federal Housing Administration loan is one option that can help you secure the financing that you need to buy a house.
When you know that an FHA loan is the right choice for you, getting prequalified helps you to start your search for a house with an understanding of how much house you can afford along with the proof you need to show that you are a serious buyer.
The process to apply for prequalification of this loan is straightforward, and you can simply follow these steps to get started.
Determine if an FHA Loan Fits Your Needs
With so many types of loans available, you may want to double check with your mortgage lender to make sure that this loan fits your financial goals. Since the Federal Housing Administration insures this loan, lenders are more likely to allow you to have a slightly lower credit score than other types of loans. You can also enjoy other home loan benefits such as having lower closing costs and a down payment of as low as 3.5%.
Gather Your Financial Information
After you apply for prequalification, you can expect that your financial history will be scrutinized. For this reason, you will need to have multiple essential documents on hand. For instance, you will need to verify your income by bringing paystubs or copies of your past year’s income tax statements to your initial appointment. You may also need an employment verification filled out by your employer.
Depending upon your circumstances, you may need to have a divorce decree and documents that pertain to your assets. For example, you may need the deed to any other properties that you own. As with any other type of financial application, you will also need to bring proof of your identity such as your driver’s license and social security card.
Since having all of your documents ready to go makes the process go faster, be sure to ask the mortgage lender what to bring before your appointment.
Work With an Arizona Mortgage Lender to Apply for FHA Loan Prequalification
A qualified Arizona mortgage lender will look through all of your paperwork and help to make sure that everything is in order for the application. Once your application is processed, you will then be told whether or not you are prequalified.
If you are prequalified for a mortgage loan, then you will typically be informed of an approximate amount. If for some reason you are not approved, then the lender may make suggestions to improve your financial standing. For instance, you may need to reduce your debt-to-income ratio to be eligible for the loan.
With your prequalification amount in hand, you can then begin to look for a house that falls within the range that you can afford. Once you find the right house, you then continue the process by filing with the lender for a final approval for the loan.
FHA loan offers many benefits to homebuyers, especially if this is your first home or you require the option of a low down payment. Prequalification lets you know how much of a loan you can get so that you can match it to the houses that you view.
Working with a mortgage lender like First Choice Loan Services allows you to quickly work your way through the process of becoming prequalified so that you can move forward with your search for a new house.
Let the Vercellino help you through the prequalification process. We are highly motivated and truly dedicated truly dedicated to our clients!