Get Pre-Approved

When buying a home, the first place to start is to get Pre-Approved. Getting Pre-Approved for your FHA loan gives you the authority to place offers on properties for the amount you are Pre-Approved for or less. This is a very important step in the process and it is highly recommend that if you are thinking about purchasing a house you get Pre-Approved first to avoid any problems and issues that could arise if you do not.

Being Pre-Approved will also let you know where you stand and will verify how much of a house you can get an FHA loan for. This will help you focus your attention on properties you will qualify for and most real estate agents require that you show them your Pre-Approval letter before they show properties to you.

Your FHA Loan Officer will evaluate the following:

  • Credit – FHA has very flexible credit guidelines. There is no minimum credit score required, and you can even have had a bankruptcy in the past. Your Loan Officer will discuss your credit situation with you. If, for any reason, your credit will not allow you to purchase a home immediately, your FHA Loan Officer will tell you exactly what needs to be done in order to qualify for an FHA home loan in the near future.
  • Income – Your FHA Loan Officer will discuss your current employment and income situation, and determine how much you can afford. This will prevent you from making an offer on a house that you cannot qualify to buy, or that has a monthly payment more than you are comfortable with.
  • Assets – FHA has a very small required down payment. Your Loan Officer will discuss how much you need, and even options available if you do not have the required funds available. FHA allows both seller paid closing costs and down payment assistance. Make sure you ask your FHA Loan Officer about these options if you would like to take advantage of either.

Once you and your Loan Officer have discussed these items, you will work together to determine the price range that you can both get qualified for, and will be comfortable with. Once an approval is attained for that price, your Loan Officer will send either you or your realtor a Pre-Approval letter which will allow you to both see and make offers on houses.

Getting Pre-Approved is the first step to home ownership!

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