USDA Loan Pre Approval – Post Game Do’s and Don’ts

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Do’s and Don’ts After USDA Loan Pre Approval:

  • No cash deposits of any kind into your bank account. Remember how hard you just went through the USDA Loan Process after all! Cash is difficult to source so it has to be deducted from the ending balance on your statement.
  • Don’t have your credit pulled for any reason. Inquiries can come back to haunt you with credit scores going down because of them.
  • Some investors will not accept borrowers that have excess inquiries on their credit. These inquiries can be viewed as you being denied by other lenders.

Can You Have Large Purchases After USDA Loan Pre Approval?

  • No large purchases. Large credit purchases can affect your debt ratios. So if you buy things after a lender pre-approves you, it will significantly impact your pre-approval amount.
  • Try to limit the use of your credit cards. Any time balances go up and are reported to credit, it can impact your scores negatively.
  • While shopping for a new home, you are supposed to be in pay down mode.
  • Anything from this moment forward must be paid for with a check or debit card from the same account you are providing to your lender.
  • If possible, limit transfers.
  • Your lender will have to provide bank statements showing where those transfers originated from.

What is the Communication Like after USDA Loan Pre Approval?

  • Respond to all email and phone requests regarding your loan right away. Just like following guidelines in order to land the loan, you will be helped along the way here. This will ensure that your loan closes on time.
  • Don’t be late on any of your payments. Late payments on credit will affect your scores.
  • Being late on rent or mortgage will affect your approval.
  • More than one late in the last 12 months will prevent you from being approved.

Changing Jobs After USDA Loan Pre Approval

  • Do not change jobs or fields of work.
  • If you plan on doing this, please call your loan specialist before doing so.
  • Your loan specialist will have to make sure the income from your new job will work for your loan amount.
  • If you are not sure about something or don’t know if it will affect your loan approval, please call your loan specialist.
  • Their job is to help you navigate through the process.

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Home Buyers Guide

USDA Loan Process