January 10, 2012
Filling out the FHA loan application is the first official step on the road to an FHA guaranteed mortgage. All the preparation a borrower should be doing prior to the loan application including the review of your own personal credit data, making a budget, closing unneeded lines of credit, and other steps are just the preliminaries.
The application is what sets you on the path to home ownership. But what does your lender do with the application data once you’ve handed it over?
FHA loans are issued by private banks and mortgage companies, not the government. Participating FHA lenders must insure the credit they issue is not a risky investment, and the details on your credit application are not just reviewed, they are also verified to make sure they give an accurate picture of the applicant.
One of the most important aspects of the application, credit score and history information aside, is income and income stability. According to the FHA official site,
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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