FHA Home Buying Process
If you are thinking of buying a home, you may have questions about getting a mortgage. Here is some information about using the FHA home buying process.
What is FHA?
FHA is the Federal Housing Administration. As part of the U.S. Department of Housing and Urban Development (HUD), they insure mortgages on single family homes, multifamily properties, residential care facilities, and hospitals. They provide mortgage insurance on loans made by FHA-approved lenders nationwide.
How do I apply for FHA financing?
You apply for an FHA loan directly with the mortgage banker/broker, your bank, or any other lender that you choose. Most banks and mortgage lenders are approved for FHA loans. Since you can apply for pre-approval of an FHA loan with the lender you choose, you have many options.
Do I need a pre-approval for the FHA home buying process?
Once you apply, your lender will gather your financial information and provide a pre-approval within a few days (if you qualify). That will give you an idea of how much you can borrow before you start shopping for a house. It’s important to know that you are not committing yourself to anything by simply getting pre-approved. This is, however, the best way to be prepared for the FHA home buying process.
Why would I choose FHA instead of another type of mortgage loan?
FHA home loans require lower minimum credit scores and down payments than many conventional loans. That’s why they are especially popular with first-time homebuyers. In fact, according to FHA’s 2020 Annual Report, more than 83 percent of all FHA loan originations were for borrowers purchasing their first homes.
Remember, while the government insures these loans, they are actually underwritten and administered by third-party mortgage lenders – not the federal government.
We hope this information is helpful to you if you are considering the FHA home buying process. Whether you are moving now or next year, give us a call, shoot us a text, or send us an email so we can help you make your move to North Texas. Subscribe to our channel to learn more about buying, selling, or just plain living in North Texas. https://www.youtube.com/user/