USDA home loans offer a number of benefits, which make them a popular option among many of the home buyers we work with.
They provide the option for 100% financing, flexible qualification standards, and competitive interest rates, among other advantages. As a result, they are a financing option that gives some who might not meet the qualification standards for other mortgage types the opportunity to purchase a home.
Curious about the USDA home loan process? Here’s a brief overview to help you understand what to expect if you think this might be the right mortgage option for you.
The USDA Mortgage Process
Generally speaking, the USDA home loan process follows the same basic procedure as other types of home loans. (You can find a general overview of the mortgage process here, for reference.)
Here’s what to expect from a USDA-specific mortgage process:
1. Achieve prequalification and preapproval for a USDA loan with a lender or mortgage broker
First you’ll need to find a lender or broker that you want to work with. Once that’s done, work with them to get prequalified. This will involve a review of how much you’re planning to borrow to purchase a home, your income and assets, your monthly debts, and your credit.
Once your financial situation has been reviewed, your lender will provide an estimate of how much you can afford to spend and will inform you of whether or not you will be able to close on a USDA loan based on the information you provided. Continue reading “We Tell you how Understanding the USDA Home Loan Process”