Once you’ve been matched with an FHA home mortgage lender, you’ll work with your mortgage broker to submit all the necessary paperwork to qualify for your loan. This includes agreeing to a credit check, submitting proof of income (such as recent pay stubs and income tax returns), and submitting proof of funds for your down payment (such as a bank account or 401(k) statement).
In addition to a downpayment, closing costs are due at the time of closing, which typically equals 2 to 5% of the purchase price of the house. Many FHA loan borrowers negotiate with the sellers of their homes to have the seller pay these out-of-pocket closing costs.
The next step in the mortgage process is to become preapproved. You’ll become preapproved when your lender confirms the information you’ve submitted, takes into account your financial situation, and determines how much of a home loan you can afford to borrow, based on industrybenchmarks. The preapproval process includes filling out a mortgage application and submittingto a credit check, income verification, and down payment funds verification.