The Essentials: Your Checklist For an FHA Loan
So, you have started the FHA Loan process, there is some information that is necessary to gather. Below is a list of material to organize and helpful hints that will save time later.
- Review your credit report: The underwriting guidelines are different for each loan type. Knowing your credit score will help to lock in the best possible rates. Feel free to talk your Colorado Mortgage Group loan officer to better assist you with questions that may arise.
- Dispute any blemishes on your credit report if they don’t look right.
- Gather your (and any other individual on the mortgage) last two years of tax returns and proof of income (W2s or pay stubs)—or your year-to-date profit and loss statement if self-employed.
- Have your down payment money and closing money ready. The larger your down payment, the wider your options. It’s important to be realistic. So within a realistic framework of what you can afford, the more you put down, the better your terms. The days of zero down payments, especially on a mortgage, seem to be winding down. Putting more money down up front will help ensure you pay less each month.
- Have you been renting from a private landlord? Gather proof from the last 12 month such as check copies, and money orders receipts that show that payments were made on time. A written referral from your landlord could be helpful as well.
- Oganize personal documents, for example government identification. Other personal paperwork such as copies of divorce papers are applicable as well.
- Provide proof of regular income from all forms including Social Security, child support or government assistance.
- A complete list of your debts, such as credit cards, student loans, car loans and child support payments, along with minimum monthly payments and balances.
- Be ready to disclose past financial issues like bankruptcy. Provide a written explanation of what happened and what steps you have taken to correct your situation.
- Keep your credit score healthy. So do not do the following:
- Apply for new credit.
- Take on new debts or make large purchases.
- Cancel any current credit accounts.
- Ask a creditor to lower your limit.