Many Florida first time buyers like to get prepared for the their USDA home loan applicationwell in advance. Not a bad idea since the home buying process is a very important decision. Even if you are still 6 months or more away from purchasing, the USDA Rural Housing loan qualifying tips below should come in handy to insure you are ready when the time is right.
Check your credit: Be sure to take a look at your credit report for any inaccuracies. Take care of any outstanding collections from the past, in many cases these creditors will settle out for a reduced amount. It’s also important to not be late on any credit accounts you have. Remember, most lenders and banks require a 640 credit score in order to get approved for financing.
No cash: Be sure you have no random cash deposits in your bank account, especially when you get within two months of your USDA loan application. If you do, be sure they are well documented – copy of check, receipt, bill of sale, etc, if available. Most cash deposits within the last few months in your account (excluding normal deposits like payroll) will need to be documented.
Relocation: If you are a homebuyer that is relocating you will need some extra things. For employees that are relocating with the same employer (company) – you will likely need a transfer letter from your employer stating the new address and any changes in position and/or income. For buyers relocating and going to work for a new employer – you will likely need to be hired, working and have received one paystub before closing. Sometimes there can be exceptions to this if you have a commitment letter from the new employer, with salary, stating there are NO contingencies. Basically this will state you have passed any pre employment requirements like training, drug testing, etc
Savings: Are you planning to put money down? If so, you need to plan your saving accordantly. Even if you plan on doing 100% financing USDA loan, there are still closing costs that need to be considered. All loans like USDA, FHA, etc, require closing costs in the range of 3-6% of the loan amount. The good news is these programs also permit the home seller to pay your closing costs! However, buyers still need to have a little savings to cover upfront deposit, home inspection, etc.
Monthly costs: It’s smart to get a “real world” idea on what you can expect in regards to monthly housing payment based on your price point– with tax, home insurance, mortgage insurance included. Click this link here for a handy USDA mortgage payment calculator. Just look on the lower right side.
Once you are ready to begin the USDA application process – please visit us atwww.UsdaMortgageSource.com Buyer should also read the list of USDA FAQ’s here for some great RD/USDA program info.
Serving Charlotte County, Lee, Sarasota and Desoto County FL: Cleveland, Grove City, Palm Island, Placida, Port Charlotte, Punta Gorda, Rotonda and Solana, Boca Grande, Bokeelia, Bonita Springs, Captiva, Cape Coral, Estero, Fort Myers,Gateway, Lehigh Acres, North Fort Myers, Page Park, Pine Island Center, Punta Rassa, Sanibel, San Carlos Park, St. James City, Tice, Arcadia, Brownville, Cubitis, Fort Ogden, Hull, Lake Suzy, Lansing, Nocatee, Southfort, Englewood, Laurel, Nokomis, North Port, Osprey, Sarasota, South Venice, Vamo, Venice
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