FHA Home Mortgage Loan Prequalifications

A mortgage prequalification is an initial approval from a bank that states ifan applicant’s income, debt and credit are satisfactory to approve a mortgage loan when planning to buy a house from Idaho Homes for Sale, for instance. As a preliminary estimate, it does not really guarantee approval. In order to get prequalified, you must know what the credit requirements are for the different types of loans so you can meet the expectations and therefore be prequalified.

As the easiest type of real estate mortgage loan and the most flexible type to qualify for, it requires only a minimal down payment among the home loan options available. It is designed to help Americans fulfill their dream of homeownership. To qualify and obtain approval for these government-insured loans, you must have a minimum credit score of 620. To obtain a prequalification or preapproval for credit scores below that minimum requires an additional time to go through the underwriting process.

The benefits of being approved are numerous especially if you are planning to buy a home from Homes for Sale in Boise ID – Down payment is less than 3.5% of Sales Price, 100% Financing options available, Gift for down payment and closing costs are allowed, sellers can credit up to 6% of sales price towards buyers costs, closing coast are regulated and protect borrowers, no reserves or required

To prequalify for an FHA home mortgage loan, here’s what you need:

1. Stable employment history for at least two years with the same employer with steady and increasing income.

2. Less than two thirty day late payments in the past two years..

2. A good credit record for the past three years. Bankruptcy and foreclosure records must be at least three years old.

3. Approximately 30 percent of your total monthly gross income must be the equivalent of the mortgage payment an applicant is qualified for.

Prequalifying for an FHA loan does not necessarily warrant that you can purchase your dream home from Preston ID Real Estate. It helped you assessed your borrowing power and what you can afford in terms of a monthly mortgage payment.