How to Track an FHA Loan
- 1). Apply for a FHA loan with an approved mortgage company and loan officer. Your loan officer will advise you of the specific documentation that you will need in order to apply for an FHA loan as well as a checklist of things you should and should not do when applying for a mortgage. Once the loan process is under way that doesn't mean that you shouldn't be actively engaged in the process. It's important to begin the tracking of your FHA loan from the date of application.
- 2). Create a spreadsheet or checklist to track your FHA loan. Keep an eye on current interest rates and ensure that your selected loan officer or mortgage broker follows up with you regularly. Step one of your tracking after application is waiting until you get the disclosure package. This package will contain 45-60 pages of FHA loan documentation, disclosing all the terms of your loan. This should be your first checkpoint on your tracking sheet.
- 3). Fill out all of the information in the disclosure package, and keep all of your financial statements. Once done, you will make the next entry in your FHA tracking checklist, which is the submission of all of your documentation to the FHA underwriter. Underwriting can be as quick as 24 hours or could take as long as 45 days dependent on your credit history.
- 4). Talk to your loan officer regularly about the status of your loan from the underwriting department. While you are waiting, you should be tracking the current market rates so that you can ensure you get the best deal on your FHA loan. Create a separate spreadsheet for tracking interest rates. When underwriting approval is complete, you can lock your rate in. Rates vary from week to week, but normally they will only fluctuate by fractions of a point.
- 5). Keep all of your financial documentation readily available. This includes your tax statements, bank statements and pay check stubs. Having these things available quickly will help the underwriting department should it need them.
- 6). Get ready to supply all of your documentation two or three times prior to closing on your loan. Track your loan status, and provide all documentation as quickly as possible. This will ensure a fast closing on your loan. Once your loan is approved you are ready to close and the last step in tracking your FHA loan is to get the HUD statement 24-48 hours prior to closing. Your HUD statement is the terms and charges from the Department of Housing and Urban development that is mandatory to disclose all fees and credits paid by you and the seller of the home.
- 7). Read your HUD statement and make sure that it is free from mistakes. The HUD statement should match exactly what you received on the good faith estimate from your loan officer. Review loan origination fees, down payment amounts, title policy fees and survey charges to check for discrepancies. Your FHA loan is now ready to close and you have tracked the progress from start to finish.