How To Apply For An FHA Home Loan In TX
The Federal Housing Authority (FHA) has the lowest down payment requirement of all loans (currently 3.5 percent of the purchase price), so it’s no wonder that it has gained popularity. Apply for FHA home loan in TX is like applying for most anywhere in the United States. The guidelines of HAF changes and the loan process is the same. FHA allows higher loan amounts in some states where the cost of housing is high (like Hawaii). To apply for FHA home loan, you can choose to do so online, in person with your favorite loan agency, or even by phone.
Things you will need The last two years forms W-2 30 days of pay stubs Two years income tax returns if self-employed Copies of bank statements (proving payment funds) down Contract of purchase of the house Copy of the act (if refinancing) Declarations from the Owners Policy Page (to refinance) List of all debts and monthly payments Copy of social security cards of all parties Copy driver’s license of all parties current credit report Check credit
Your credit reports. This service is free once a year, but there is a small fee for the scores. (Most banks need at least a 620 credit score to approve an FHA loan for a purchase or refinance loan “cash out.” Some now require a 640 credit score, however, these are the limits set by the bank that finances the loan.FHA lower a loan application when the scores are in the low 500’s). Check each report for duplications, errors, and outdated information. These disputes by calling the customer service number on the first page of each report. Give the offices 30 days to answer and your scores should increase.
Gather all the loan documents listed above, placing them in a folder, and call your favorite lender who writes the FHA loans to schedule an appointment. The lender may want to pre-grade you over the phone before you have come to complete the application process. This is useful because it will start the process in a more efficient way. Write down your questions and concerns, and make sure you get all answered at this meeting. Your lender will prepare a “good faith estimate” for you, which will give you all the costs associated with closing the loan. If your credit, income and a down payment are sufficient to qualify you for this loan, the lender will generate a package that will require to apply for FHA home loan signatures. Go ahead and sign and date these documents. Have your lender copy the income and fortune documents you brought to your meeting. When all documents are signed, the lending agent must analyze and transmit to the lender the financing, which may not necessarily be the bank). Once these documents have been consulted, you will receive a signature package to sign. Once this package is received, the credit officer will have to collect your funds for the assessment and the official credit report of the file. You will receive the required totals so that you will be ready to begin the loan process. Warnings The lender’s funding must order the valuation, and since the actual lender must generate and send a loan package to you, this whole process takes a few more days before this requirement. Realtors should understand and extend “must close by” dates accordingly. Some counties in TX allow higher loan amounts. These are areas where the residential real estate market is a higher cost. (See reference below). Be sure to ask your lender what minimum credit score is required for an FHA loan by their bank.