The USDA Home Loan Process
Buying a home is one of the most important decisions in a person’s life. A home is more than a place to live; it is a step towards the American Dream of Wealth. The USDA home loan helps those that may not have the financial means necessary to attain the dream of home ownership. The USDA Home Loan Process has certain steps to follow in order to have a smooth process.
Pre-Qualify with USDALoanInfo.com
A pre-qualification provides an estimate of what you can afford based on the information you provide to your loan specialist. A typical pre-qualification only reviews the applicant’s credit but not their income. This gives you a glance at an affordable purchase price.
Recieve Your Pre-Approval Letter
A pre-approval is a much more comprehensive process. All income documentation will be thoroughly reviewed. Sellers are more likely to take your offer seriously if you have a pre-approval letter in hand. It is important to note, however, that a pre-approval does not guarantee a USDA Loan.
Find Your Dream Home
Once you are pre-approved, the next step is to find a knowledgeable or experienced realtor and start your home search. It is very important to let your loan specialist know what agent you are working with and what properties you are interested in. Your loan specialist will be able to determine whether the home is in an eligible area.
Make an Offer
After you have found your desired home and your loan specialist has researched the property, you are ready to place an offer. Your agent should already be aware that you are using a USDA Loan and should prepare your offer so that the seller pays all closing costs. The USDA Home Loan program does allow gift funds from family and friends
Processing, Underwriting, and Closing
Once your offer is accepted and a contract is signed by all parties, your lender will need to set up an appraisal of the property to ensure the dwelling meets USDA home loan standards. During this time an underwriter will review your information to ensure there have been no major changes since the pre-approval. Once conditions have been met, a closing date will be scheduled.