Taking out an FHA loan is very similar to taking out a traditional mortgage. Here’s what you can expect.

1. Decide if an FHA mortgage is right for you. FHA loans can be a lifesaver if you have a shaky credit history or if you don’t have enough for a 20% down payment. But, they aren’t the best choice for everyone. Explore this site and talk with a mortgage professional to decide if this is the right option for your circumstances.
2. Find an FHA lender. Most lenders and mortgage brokers can help you take out an FHA loan. But, not everyone is experienced with the program. Try to find someone who has years of practice submitting FHA applications. (Remember: the Federal Housing Authority insures these loans, they don’t actually create them. You will need to go through a lender).
3. Get pre-qualified. When you meet with a lender, he can make an initial determination about whether or not you can qualify for a loan. Give him some basic information about your income, credit, etc. and he will let you know how much you will qualify for. A pre-qualification letter can be used to show the sellers you’re serious when you submit an offer on a home.
4. Submit your application. Once you’ve signed a purchase agreement for a property, it’s time to apply. Your FHA loan application will require information such as W-2 forms, employment and salary information, tax returns, and paycheck stubs. As a part of the application process, the underwriter will run a credit check and call your employer. You will be charged for an appraisal of the property.
5. Complete any necessary inspections. As the loan is being processed, you will be given the opportunity to do an inspection of the property. Take advantage – now is the time to determine if there are any costly problems such as mold or water damage. If problems are found, the seller may be willing to pay for repairs or you may be able to back out of the transaction.
6. Close. Most FHA loans close in less than 40 days. The closing process can vary from state to state. But, in general, you will meet at a title company’s offices and sign the necessary paperwork. You will submit a cashier’s check for the down payment and required closing costs. Once the paperwork is processed, you will be given the keys.

See Also: FHA Mortgage Basics