We git pre-approved for USDA home loan. What's next?
So we got preapproved for the USDA home loan and they said that our ratios are very good. What is next adter this?
- linkus86Lv 77 years agoBest Answer
Once approved, your loan officer should give you a price range to consider and good faith estimates pertaining to the closing costs and estimated monthly payments will be for each. Often loan officer will simply tell you you are qualified to borrow up to a certain amount, so as long as you don't pick a house costing more, you are in good shape.
The best place to begin house hunting is with a Realtor to represent you in the purchase. If buying a house listed by another agent, having your own agent solely looking out for your best interests will not cost you a dime. This is because the seller pays their agent a commission and that agent must share the commission with yours due to agents membership agreement to the local MLS.
In addition your Realtor will know which houses are eligible as a USDA property. Plus they know all the ins and outs of the purchase process that you are encountering for the first time or haven't encountered in quite a while. It is always better to have a professional in your corner rather than relying on the sellers agent acting as a representative of both buyer and seller.
- Parrill AppleLv 77 years ago
I accidentally thumbed up the answer I meant to thumb down. Yes the next step is to go house hunting. Just because USDA is backing the loan does not mean it has to be a house in a rural area. There are urban areas marked off as ineligible, but many suburban neighborhoods are eligible and they are close to good schools.
- loanmasteroneLv 77 years ago
Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, you can find one in your local telephone book.
Make sure this mortgage broker or mortgage banker is able to do government loans such as USDA, FHA and VA loans if you qualify for one. With a VA mortgage loan you are not required to have a down payment, this will save you on closing cost.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.
When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.
Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments. This will allow you to make an intelligent decision.
If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.
You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.
What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.
So select the best option for you and your financial situation.
You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign. Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.
I hope this has been of some benefit to you, good luck
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- Go with the flowLv 77 years ago
You get your house in the middle of nowhere.
Good luck when you need to sell this rural home.
And if you ever have kids, buy them a good coat for those 1 hour bus rides to high school.
0% down home loans should be illegal.
People always regret them. They always get in financial troubles.
If adults cannot discipline themselves to put 10% down, they should not be able to buy a home
50% of this foreclosure mess is by 0% down loans such as this.
And the government is doing nothing to stop this.
- ?Lv 77 years ago
Now go house hunting