Obtaining a pre-approval letter from an FHA approved lender can be important. Most finance experts will attest that it important to get pre-qualified for a FHA loan prior to making an offer. Yes, getting preapproved for FHA home loan can appear to be something of a process, but it can be a very rewarding one for prospective home buyers looking to finance a house through a mortgage insured by the Federal Housing Administration. While a pre-approval letter states that a person is approved for a loan up to a certain amount, this does not guarantee fully that they will get the exact loan they are asking for.
Now is a Great Time to Get Pre-Approved for a FHA Loan:
- Low Interest Rates
- 3.5% Down-Payments
- Easy Credit Requirements
- Quick Approval Process
- Pre-Qualification Letters
- FHA pre-approval letter
First, when looking to get a pre-approval letter for a FHA home loan, a person must find a FHA approved lender in their area. These lenders are often listed through the US Department of Housing and Urban Development, and these lenders can be found throughout the country. Once a desired FHA approved lender is found, the next step in the process can begin. A person will want to then set up an in person appointment with their desired FHA lender to discuss filling out a pre-approval application. To prepare for this appointment, it is suggested that the applicant gather all of their important financial documents and records to submit to the lender for consideration of pre-approval. These documents should include tax records, pay stubs, investment records, and banking records or information to prove that the applicant is financially stable enough to handle their mortgage payments.
The lender will then use this information and pre-approve the applicant for a set loan amount should they be found financially capable of handling a mortgage at that time. This pre-approval process allows a prospective home buyer to see just what he or she can afford when looking to obtain a home loan, and a pre-approval letter can make some home purchase offers somewhat more attractive to sellers. A potential buyer with a pre-approval letter will have proof that they will be able to pay for the mortgage on a home, and this letter often shows that they are serious about following through with the buying process.
In most cases, home buyers can get a pre-approval online. Not too many years ago, applicants used to meet their lender in person. Before there was consumer trust on the internet, meeting with a lender in person enabled the prospective home buyer to examine their finances with the lender, and provide explanations for any problems that may arise. While pre-approval is not a complete guarantee that a desired mortgage will be approved, it does allow the process to go more smoothly.