The FHA Loan approval process is a simple one. However, there are a few specific steps. In Madison LA, there are some truly lovely properties that will become available to you if you receive FHA funding. With an FHA loan, you can enjoy putting down 3.5% or less to move into your new home and enjoy having most or all of your closing costs included in your loan. There are other benefits as well. FHA Loans are simple to understand and straightforward to utilize.
Sun Mortgage Funding Offers FHA Loan Solutions
One you have chosen your ideal property, been approved by Sun Mortgage and the sales agreement has been drafted, the final approval process will begin. The appraisal process is a key part of the final stages. If the property you want does not pass the appraisal process, the appraiser will value the property at a lower rate than expected and your FHA loan will be put on hold until any needed repairs are completed.
Appraisers are not looking for superficial issues like slightly chipped paint or a carpet that needs to be replaced. They are looking for extreme safety violations that would endanger your life, and the lives of your children. Issues that can prevent approval include extreme mold, asbestos, deep termite damage or pest infestation, poor water drainage, poor cooling and heat circulation, lack of ventilation, sewage issues, leaky roofing, and toxic chemical exposure.
The appraisal process is not an inspection, so you should not expect the appraiser to take an extremely deep look into your home. In addition, many people mistakenly believe that if their property passes the appraisal, it is then insured in some sort of way. Meaning they feel that if there is some issue that was not apparent or found during the appraisal process that somehow the FHA will fix this issue or will contract workers to come fix your home. This is not the case.
The FHA is a government agency that guarantees your mortgage loan in case you default. The appraisal process is simply a way for the FHA to determine the value of the property they helping you get the money to buy. The appraisers value determination will dictate the amount of money the FHA will guarantee for you. However, it will not dictate the price you and the seller agree upon when it comes to your purchase. It is simply a number the FHA uses for its own purposes.
When the appraiser comes out, he or she will complete simple documentation including a rough sketch of the layout of your home. He will take pictures of your home's complete exterior and possibly some of the interior. He will also begin the estimation of value process and possibly complete an FHA Form 1004. There is nothing for you to worry about during this process. The property will speak for itself and then the appraiser will communicate with Sun Mortgage (your actual mortgage lender) and the FHA.