In this post we are going to outline 3 big do’s and don’ts to remember while going through the USDA home buying process in Florida. The items outlined below actually apply to all home loans (FHA Home Loan, Conventional Loans, etc ) not just
USDA home loans.
First we will highlight the things you DO NOT want to do while going through the USDA application/home buying process.
1. Do NOT open any new credit account. That new car purchase, or furniture purchase will have to wait until your home purchase is closed and final. Doing something like this can change many variables in your USDA pre approval. This includes your qualifying debt to income ratios (how much house your qualify for) credit score, etc. Not only can the new debt impact your credit scores, but also the new credit score inquires from the creditor can have an impact. Leave everything the same as the day you applied for your USDA home loan mortgage.
2. Do NOT change jobs until speaking with your USDA loan officer first. Again, your USDA pre approval application is based on the original information you provided on your USDA loan application. Any change to this can, especially extended gaps in employment, can have a serious impact on your USDA approval.
3. Do NOT move money around different bank accounts. During the USDA underwriting process, you will be asked to provide your last 2 months most recent financial account statements. The USDA underwriter will review these bank statements, etc, for abnormal patterns. This safeguards to prevent any possible fraud. Additionally, be sure you talk to your USDA loan advisor first if you plan to receive any money during the loan process – gift funds, etc. Gift money from family members is perfectly ok, you just need to be prepared to show the paper trail. This includes a copy of the check received, copy of the deposit slip and a gift letter. Again, this is used as a fraud prevention tool for underwriting.
Now, a few things to defiantly DO while going through the USDA home buying process.
1. When you find that perfect home to purchase, be sure to click here and check that the home is USDA eligible. Remember the home must be located in a USDA eligible area, so be sure you do this before writing a contract. Tip – when inputting the property address in the USDA property eligibility finder, leave out the city name. Just input the street address, state and zip code. Buyers that are looking to purchase a home in a totally USDA eligible Florida county can disregard this. Many Florida Counties especially in the Panhandle and North Central Florida ( Washington County, Jackson County, Holmes County, Calhoun County, Liberty County Madison County and Columbia County to name a few) are totally eligible for 100% USDA Financing. There are also many counties totally USDA eligible in the interior part of central/south Florida – Hardee County, Highlands County, Glades County, Desoto County to name a few.
2. Also remember that the home can be ANY “habitable” single-family residence (no matter who the seller is) as long as the property is physically located in a USDA eligible area. Existing mobile homes are not eligible. We recommend you have your own USDA experienced Realtor while going through the USDA home buying process. There are many
important reasons for this. If you need a recommendation for a real estate agent in your town, just let us know. We partner with many highly trained USDA experienced realtors throughout Florida.
2. Save money. Yes, the USDA Rural Development home loan is 100% financing with no down payment required. However, you will need some money once your purchase contract is fully accepted. Money for what you might ask? First, the sellers of the home will most likely require an earnest money deposit – to show good faith on your part. This is normally required in every transaction and can be credited back to you at closing. In addition to this, you will need money to pay for your USDA appraisal and home inspection costs – figure around $700 for all the inspections. Depending on the seller’s concession you receive for closing costs or the appraised value of your new home, you can often get your upfront money back at closing. Please click here for information about USDA Rural Housing closing costs.
3. Listen to your loan officer can don’t be afraid to ask questions. Many USDA borrowers are first time home buyers as well. You will have many questions while going through the home buying process, this is to be expected. Don’t be afraid to ask those questions, we have the answers. Be sure to listen to your USDA mortgage officer and take their advice in regards to the financing part of the process. Keep in mind there are many different moving parts to the home buying process, not just financing. However, when it comes to the financing and USDA loan process, listen to your loan officer. Your co worker, neighbor and even Realtor are not the licensed mortgage experts….we are.
Questions? just submit the short Info Request Form on this page for fast service. You can also contact us at 7 days a week at ph: 800-743-7556