August 2, 2017
In our previous blog post about getting FHA loans, we discussed what a participating FHA lender is, and why you might not find the same types of FHA loans from lender to lender. Where can you apply for an FHA loan? Through a participating FHA lender who offers the type of home loan you need. But there’s more to this than just seeking and finding the right financial institution.
Get Pre-Approved For An FHA Loan
When you find an FHA lender who offers the type of loan you need (new purchase, construction loan, condo loan, etc.) be sure to ask about the pre-approval process and what it takes to get pre-approved. Doing so can help you a great deal-you’ll have a better idea about the rough amount of loan you qualify for based on your financial information, credit score, employment and income data, etc.
You won’t have your credit report pulled at pre-qualification time, so you’ll need to have your credit scores in advance of the process. Pre-approval is something that can be done online or by phone, and it’s an important tool to use in the preparation stages to determine if/when you are ready for next steps.
Pre-qualification Is Not Loan Approval
Even when you get pre-qualified, it’s only once you formally apply for the FHA loan that your lender will pull your credit report information and process your application. When you are pre-qualified for a mortgage loan you have not been formally approved. That is an important distinction to make going into your home buying journey.
Where Can I Apply For An FHA Loan?
Depending on the lender, state law, and other factors, you may be able to start the application process over the telephone or online. FHA loan rules permit electronic signatures on home loan documents as long as the procedure for collecting those signatures and the documents being signed conform to FHA loan rules.
Additionally, state law and other regulations may have something to say about how and when electronic signatures may be used. Ask your lender about this option and where it might apply or best serve you in the application process.
There are many ways to apply for an FHA mortgage loan, but it’s good to keep in mind one important aspect of the FHA loan process. At all times, you the applicant will deal with the participating lender rather than approaching the FHA directly. This does not apply in cases where a borrower needs to file a complaint with the FHA about some aspect of the home loan process, but for a typical loan transaction the FHA requires the participating lender and the borrower to work together toward loan approval.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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