USDA Loan Eligibility Tip: Cash, Check, or Money Order?
This week is an important USDA Qualifying tip because many don’t realize some of the basic rules that when not followed, can either delay or worst case, stop a transaction. This is a great USDA Loan Eligibility reminder for both new pre-qualifications and existing transactions. If you are working with a buyer or know someone who is concerned with USDA Loan Eligibility, feel free to share these tips because these are the type of details which can help to save much frustration.
Make sure to start off on the right foot which many times begins with the Earnest Money Deposit (EMD) right after a contract has been accepted. Underwriting will always need to verify this very important deposit so make sure when received, it is paid by check from the home buyer. Paying by check automatically documents the source of the funds used to pay the Earnest Money Deposit. Cash payments are not easily documented and can hold up the loan process.
Appraisal fees and inspections are customary out of pocket expenses that usually happen after the contract has been signed; this should be paid by either check or credit card if possible because both forms of payment can provide verification if needed. Money orders and cash are never acceptable forms of verification. If your client does not have a bank account, then now is a good time to establish one. Read more tips about USDA Rural Home Loan Eligibility Requirements.
Understanding the USDA Loan eligibility requirements can be challenging but my team is built to help home buyers become mortgage ready! If you are a realtor and have a client looking to purchase a home with USDA financing, help them prepare with The USDA Blueprint for Success!
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