USDA Home Loan Process in 5 Steps

Buying a Home with the USDA Home Loan Process

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Pre-Qualify with For USDA Home Loans Starts Here

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 applicants credit but not their income. This gives you a glance at an affordable purchase price.

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Next Step: Receive 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 USDA Loan.

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Find Your Dream Home in the USDA Home Loan Process

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.

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USDA Home Loan Process: 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.

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Processing, Underwriting, and Closing the USDA Home Loan Process

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.

The Ultimate Guide to USDA Loans

We hope that you enjoyed reading our strategy and roadmap on how to navigate the USDA Home Loan Process. If you require further reading, USDA Loan Info created an in-depth Guide which answers the question – What is a USDA Loan?
There you will find 10 comprehensive, yet easy to digest section as listed here:

Chapter 1: What is a USDA Loan?

Chapter 2: USDA Loan Benefits: Pros and Cons

Chapter 3: USDA Loan Eligibility

Chapter 4: USDA Loan Income Limits

Chapter 5: USDA Property Eligibility

Chapter 6: USDA Loan Rates

Chapter 7: USDA Loan Process

Chapter 8: USDA Loan Refinancing

Chapter 9: Guaranteed vs Direct Loan

Chapter 10: How to Apply For a USDA Loan