Government-backed mortgages are always administered through authorized banks. Specific steps vary from lender to lender. The following was submitted by one lender as an example:
1. First you review the requirements and common fees for FHA loans
2. Next you fill in the contact form on the sidebar of this site and we contact you to discuss the details of your situation
3. At some point early on you fill in a secure online loan application or complete the application directly with a loan officer
4. We reviews your credit and situation and upload a copy of your credit report to a secure online web page for you to review as well. If we are confident that you can qualify for a loan we will send a good faith estimate for you to review.
5. Once you give a green light on the estimate, you send us your last two years w2′s and recent pay stubs for income verification, plus two months of recent bank statements for asset verification. Other verifications are occasionally needed as well. (Faxing these documents expedites the process so we recommend that)
6. We send you all of the federally mandated disclosures and loan documents for your records
7. We order an appraisal for you (Note: Borrowers pay for the appraisal up front but in some cases we can refund the appraisal fee after closing.)
8. Once we receive the appraisal and the income/asset verifications we submit the whole package to an FHA underwriter for approval
9. When the loan is approved you meet with a local title company representative to sign all the final documents
10. Once that is completed you will have a new and improved fixed rate government-backed mortgage and will be free of the old mortgage that is weighing you down!
The entire process usually takes around three to six weeks when all goes well.
