Steps for Buying a House with FHA Financing

Steps for Buying a House with FHA Financing

Senior Loan Officer
Brian Decker
Published on September 30, 2022

Steps for Buying a House with FHA Financing

Are you ready to buy a home? This step-by-step guide will help you understand what every step of the buying process looks like and can help you determine if you're ready to purchase a house.

1. Check Your Credit Score

It's important to check your credit score and review your finances before diving into the home buying process. This will help you determine if you are in a position to take on a loan in order to buy a house. If there are any collections or credit cards over 20% utilization, your lender can put a detailed plan together to make sure you are in the best position possible to achieve the most favorable financing terms. 

2. Choose a Lender

Next, you'll want to find a mortgage lender and get preapproved for a mortgage. It's important to prioritize getting preapproved as opposed to getting prequalified, as getting prequalified doesn't necessarily guarantee that you'll secure a loan. When you get preapproved, your finances will be investigated, which will guarantee that you'll obtain a loan. You also want to make sure you work with a lender like Modern Lending that offers programs like the 2/1 buydown program where they can assist you in obtaining an interest rate 2% below the market rate paid for by the seller. 

3. Find a Real Estate Agent

A real estate agent will help you figure out all of the logistics behind what kind of house you can afford and then they will represent you throughout the home buying process. Finding a reliable real estate agent is important, as they can provide invaluable insights and information. 

4. Start the Search

After finding a real estate agent, they will help you start the search for finding your dream home. It's important to tour different areas and houses with your priorities at the top of your mind. Consider the size, style, and condition of the houses, as well as the neighborhood of the homes. A house that is in a less than ideal condition may seem appealing for the upfront price, but this will cost you in the long run. It's important to be realistic about what you can afford. You should look for a realtor that works on or runs a large team that has a large amount of listings to help you find the property you want at the best price possible. 

5. Make an Offer

Once you find the home you want to buy, it's time to put in an offer. You'll need to ask your real estate agent to run a comparative market analysis to see what price would be reasonable to offer with. 

6. Get a Home Inspection

When your offer is accepted, you'll need to conduct a professional home inspection. This will show you where major repairs need to be made or what renovations you may need to consider down the line. If significant repairs are needed, the seller may need to complete them before you close. 

7. Get a Home Appraisal

This will estimate how much money a home is worth based on recent sales of comparable value in the same area, as well as market trends and the home inspection. This will either lower the price you're paying or increase it. Modern Lending actually covers this cost for any client that chooses them for their financing, as part of their "Give Back to the Community" program. 

8. Purchase Homeowners Insurance

It's always in your best interest to buy insurance to protect your new house from unforeseen circumstances. There are differing levels of coverage, so do your research before choosing an option. You want to make sure you do not obtain a policy with a deductible anything lower than $2,500. 

9. Final Walkthrough

A final walkthrough ensures that all changes that needed to be made have been completed by the current homeowner. 

10. Close on Your New Home!

Finally, once all these steps have been completed, you should be set to close on your new home! Congratulations!

Apply for a loan with Modern Lending!

If you're looking for a reliable loan company to help you navigate the home buying process, look no further than the loan officers at Modern Lending! Our knowledgeable loan officers know exactly how to help you secure a mortgage and get you one step closer to becoming a homeowner. Our mission at Modern Lending is to help you get into your dream home with the best loan program and terms for your situation. We do not just offer one rate per program, but rather can custom tailor both the rate and length of the loan term that best fits your needs (ex: offering 3.977% rate on a 29 year term). Visit our website at for more information.

Senior Loan Officer
Brian Decker Senior Loan Officer
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