Simple Steps for Applying for an FHA Loan

For many prospective homebuyers, including first-time buyers, the FHA loan program is ideal. Backed by the Federal Housing Administration and offering low interest rates and flexible qualification thresholds, FHA loans are some of the most commonly-used loans among first-time buyers -- but those in this position may need a hand when it comes to their FHA loan application if they've never filled one out before.

At Integrity First Lending, we're happy to provide FHA mortgage loans to many clients throughout Utah, assisting them with every part of this process -- including the application itself. Here are some basic steps to follow while you're carrying out this important task.

Determine Budget

First and foremost, you need to know what you can afford and what your monthly payments will be. There are several tools you may consider here, from your own basic arithmetic to mortgage calculators like ours.

The goal here is not just to figure out your monthly payment, but also to ensure that you're taking on a mortgage you can handle comfortably for the long term. Don't be afraid to ask for help from an experienced lender or real estate agent in order to get a good idea of what's realistic for you.

Secure Multiple Rate Quotes

Next up, you should look for mortgage rate quotes from a few different lenders. This will give you a good idea of what the market looks like right now and how much you can expect to pay in interest over the life of your loan.

Again, don't be afraid to ask around or search online for the best rates. It's important to get quotes from more than one lender in order to have some bargaining power and to ensure that you're getting the best deal possible.

Prepare Documents

Once you've determined which lender you're likely going to move forward with, it's time to get your documents together. A few different documents will be required for most mortgage applications, including recent paystubs, bank statements, and W2 forms.

If you're a first-time buyer, you may also need to provide evidence of rental payments or other home ownership. This can be tricky if you haven't rented or owned a home in the past, but an experienced lender should be able to help you figure out what's needed.

Complete Application

Once all your documents are in order, it's time to proceed with the application. This will likely require filling out some online forms or submitting a paper application.

Make sure you're thorough and careful in completing this step, as any mistakes could lead to a delay in the loan process. Again, it can be helpful to have an experienced lender or real estate agent helping you through this part of the process.

Any Additional Lender Requirements

From here, your lender may have just one or two more requirements before your loan is officially approved. This might include getting a home appraisal or securing homeowner's insurance.

If you're working with a good lender, they'll keep you updated on what's needed and make sure that all of the necessary steps are taken in a timely manner.

For more on applying for an FHA loan, or to learn about any of our FHA, VA or other loan programs and refinancing options, speak to the staff at Integrity First Lending today.