FHA & Mortgage Loan Approval?
My husband and I are in the process of purchasing our first home. We have been talking to a mortgage broker that pulled our credit and pre-qualified us for an FHA loan.
The mortgage broker said we look good but Im just wondering if we should still be concerned about getting final approval. I have heard that it is very difficult getting a loan right now. Feedback is appreciated.
- 1 decade agoFavorite Answer
You'll be fine. FHA loans are saving the industry's bacon right now. We are in a credit crunch, but the FHA program is one sector that is growing.
Don't worry; go forward. Get the broker whatever documentation they ask for, keep banking cash, and don't open any new credit or tradelines. FHA has it's own red tape but not the problems that other programs are suffering.
Good luck!Source(s): real estate broker loan officer
- Dale HLv 41 decade ago
I would ask to the the approval. They should have the ability to provide you with the "findings" from a submission to automated underwriting unless you have issues that would preclude the automated approval.
If you need to have an underwriter do a manual approval, that is where the broker saying you "look good" means nothing. He is not an underwriter. You would need to have a full package submitted with everything short of a purchase agreement, title and appraisal in order to get a solid credit approval.
The basics are pretty straight forward as the others here have stated. If there is anything exceptional, you may need to press a little more to get the answer you are looking for.
Personally, if I have any doubt I want to get everything to my underwriter a.s.a.p. so that there are no surprises.
Good luck.Source(s): 7 years mortgage lending experience.
- godgedLv 71 decade ago
More difficult than it was a couple years ago, but lenders still have to give loans to make money.
Restrictions have been tightened up so stated income loans, no doc, high loan to value and such have essentially been removed from the marketplace. Credit score requirements have been increased.
If you have good credit scores, steady employment history, good debt to income ratio and down payment, you will be just fine.
Good luck on your first home!Source(s): Oregon Realtor
- rottschaeferLv 43 years ago
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- Anonymous1 decade ago
It isn't difficult if you have good credit history, good job stability, and your debt ratios aren't high.
In essence, the mortgage biz is simply back to normal, no longer loaning with zero down, or doing 125% HELOC's