Buyers always have questions regarding the USDA loan purchase process and steps involved. Below we have listed the basic steps involved of how the USDA RD mortgage process works. Homebuyers should have a basic understanding of the process, especially first time home buyers. If you have questions at anytime, please call us at 904-302-6060 or visit www.UsdaMortgageSource.com
USDA Mortgage Prequalification – Before talking to a realtor or driving around looking for homes, you need to do your USDA loan application. After all you need to know if you are approved for financing, and for how much. We will determine how much home you can afford and insure you meet all the USDA loan eligibility requirements. We will evaluate a few areas:
- Your Job / income - Your job history, How much you earn through your job and other sources of income. Also insure your household income meets the USDA eligibility income limits for your county.
- Your fico credit score - The bills you pay each month, and how timely you pay them. Do you have any accounts in default or collections? All of the information available on your credit report.
- Your bank savings - Your bank savings, retirement 401K, investment account, etc
Start Looking – Once you have been pre approved for your USDA loan, it's time to pick a real estate agent to help you find that perfect home. It’s also a good idea to work with a realtor familiar with USDA loans. Determine if you want a single family home, condo, etc. Have your requirements list ready so you know if a home fits your needs and budget.
Putting In Offer – Once you find the home you like, work with your real estate agent to develop your offer. Your agent will find comparable homes in the area to help you calculate the correct offer amount. Be sure your offer leaves you enough money to make necessary improvements to the home if needed, or to purchase necessary furniture, etc.
USDA Loan Underwriting – Once your contract offer has been accepted, the wheels start turning on the underwriting process. Your loan officer will order an appraisal to verify the home's value and also request the title search. At this time, you should schedule your home inspection. Home inspections are optional in most cases, but provide you with a detailed look at all the critical systems like the roof, electric, plumbing and air conditioning and heating systems. It’s cheap insurance and defiantly worth the small price - generally under $300. During this time, we will also review all the documentation you provided to support your income, assets and other details. Once the underwriter finishes and the home appraises at a value that supports the sale price, our goal is to provide you with loan approval and finalize your loan. While this is happening, you should work on securing your homeowners insurance. Proof of insurance will be required prior to closing. Your assigned USDA loan specialist will let you know when to start the process.
USDA Rural Development Review - Once the lender or bank has completed and cleared the initial USDA underwriting process, the final package is submitted to Rural Housing for a "final review" This generally takes a few weeks for loans in Florida.
USDA Loan Closing – The pre closing process will start once the final loan review is completed by RD and cleared for the closing. Borrowers will have the opportunity to review the closing statement in advance so you will know the exact amount for the certified check that you'll need to bring to closing. In some cases borrowers may not need to bring any money to closing, so may actually get back deposit money. You will also need to bring identification, such as a driver's license, to present to the title company or attorney managing the closing. There will be a number of documents to sign, but once they are completed, congratulations will be in order. You will be the owner of your new home and the keys to that home will be handed over to you. Now it's time to recruit some friends to help with the move!
USDA Mortgage Source - Florida USDA Loans, 7 days a week. Please call (904) 302-6060 seven days a week. Also be sure to visit www.usdamortgagesource.com
