Many first time buyers in Spring Hill are drawn to the USDA Rural Housing mortgage. Why? The USDA Rural home loan is one of the few programs that still allows buyers to purchase a home with NO money down. So, how to do you apply for the USDA loan application, what are the steps for USDA loan pre approval in Hernando County?
Before we get into too much detail, it's critical to understand exactly what a pre qualification and pre approval actually mean in the mortgage world. USDA prequalification means that based on the information you the buyer has provided to your USDA mortgage specialist, you generally meet the guidelines that are set for USDA home loans.
This is sort of generic since none of your underwriting documentation (paystubs, assets, and tax returns) is verified at this point. A basic loan pre qualification just gives you the buyer a good idea on whether or not you can obtain an USDA approval and the approximate dollar amount.
Now, the pre APPROVAL process get into more details. During this process everything is verified. To get your USDA loan pre approval you will first speak with an USDA loan officer either on the phone, online or face to face. The loan specialist will ask you a few general questions to get an idea about your current situation, your goals, your income and the amount of funds you will have when it comes time to close on your new Florida home.
The loan officer will ask:
Gross Monthly Income:
This is the amount of total household income from all borrowers that will be on the USDA loan. If you will be the only person on the loan, then only your income will be used. Keep in mind; this is the monthly gross income, the income before any withholdings are deducted. Income will be verified by paystubs, W2's and tax returns
Employment Situation:
Along with how much income you make each month, your USDA loan specialist will want to know the nature of your job, what you do there and how long you've been at your current employer. USDA mortgage pre approvals generally ask for approximately two years of current, full time employment. If you have part-time income in addition to your regular job, be prepared to provide two years worth of part time income from that job as well. All job history will be verified by standard employment verification.
Banking and Savings:
Your USDA loan officer will also prequalify you based upon the amount of money needed to close on an USDA loan plus allow for additional closing costs that may be associated with the new USDA loan. This amount doesn't necessarily mean how much money you have in your bank accounts today, but how much you will plan on having when it comes time to close on your new home. Furthermore, this doesn't mean you need money saved up as the USDA loan is 100% financing. It just depends on your home purchase contract and the details. However, like all other loan programs, the USDA program requires closing costs. These closing costs can be paid by you the buyer, or the sellers.
To get pre approved for a USDA loan here in Spring Hill – Hernando, all it takes is a little time and answering some questions. Once you have determined that you're ready to move forward and apply for a 100% USDA mortgage, your loan office will then begin the documentation process that will complete the USDA application process. To get started, call us 7 days a week at ph: 800-871-2636 or visit www.FiveStarsMortgage.com
Hernando County 7 days a week including Brooksville, Hernando Beach, Ridge Manor, Spring Hill and Weeki Wachee
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