Do you have questions about how to apply for an FHA loan in Washington State? You’ll find the answers here. We’ve broken the process down into five steps, to help you understand it. Feel free to contact us if your question is not answered below.
The FHA application form itself is fairly straightforward. It contains five pages that must be filled in, followed by four pages of instructions and supporting information. But there’s a broader process here as well, and that’s what we will look at today.
Here’s how to apply for an FHA loan in Washington State, in five steps:
1. Determine how much you can spend on your mortgage payments.
The first step in the FHA application process is not required, but it’s a prudent step nonetheless. It involves some basic budgeting match. Before you start looking at homes or speaking with lenders, take a close look at your current financial situation.
Start with your net monthly income and your recurring debts. How much do you earn each month after taxes have been withheld? And what percentage of that income goes toward your debts? How much do you have left over each month for your housing costs, after paying all of your non-housing expenses?
If you can’t answer these questions, you have some math homework to do.
Putting a budget on paper could help you avoid financial problems down the road. Your primary goal is to make sure you can cover all of your monthly expenses (including the mortgage payment), and still have something left over for savings, retirement, lifestyle expenses, etc.
2. Choose an FHA-approved mortgage lender.
If you want to apply for an FHA-insured mortgage loan in Washington State, you’ll need to work with a bank or lender that has been approved by the Department of Housing and Urban Development (HUD).
Sammamish Mortgage has been helping borrowers across the Pacific Northwest for more than 20 years. We are very familiar with the Federal Housing Administration’s mortgage insurance program. Contact us today with any questions you have about applying for an FHA loan in Washington.
3. Get pre-approved by a mortgage lender.
Pre-approval is a kind of financial pre-screening process, during which a bank or mortgage lender reviews your income, assets and debts. The goal is two-fold:
- to determine if you’re a good candidate for an FHA loan, and
- to determine how much you’re able to borrow, based on your income and debts.
It’s wise to get pre-approved before house hunting. It allows you to narrow your search to properties you can actually afford. On top of that, sellers will be more inclined to accept your purchase offer if it comes with a pre-approval letter attached.
4. Complete a purchase agreement / sales contract.
In order to apply for an FHA loan in Washington State — or any kind of mortgage loan, for that matter — you need to have a completed sales contract or purchase agreement.
To clarify: You can get pre-approved by a mortgage company before you make an offer on a home and sign a purchase agreement. That’s the whole point of pre-approval. It identifies a maximum amount so you can shop within that price range.
To complete the actual loan application, however, you’ll need information relating to the sale of the property. And this info typically comes from the purchase agreement / sales contract.
5. Complete a standard home loan application.
You’ve been pre-approved. You’ve found a home you want to buy, and made an offer to purchase it. The seller has accepted. You have a purchase agreement in hand. You’re now ready to officially apply for your Washington State FHA loan.
For this step, you’ll need to fill out a Uniform Residential Loan Application (URLA). You can find a sample of this document online, if you Google it. This form is necessary to begin mortgage processing and underwriting.