Buying my first home with the USDA program.

Asked by Joshua, Charlton, MA Wed Sep 2, 2009

I'm all nerves right now and I was hoping to get some feedback on the remaining process. I have received a pre approval, found a home and have a signed agreement. Please help with some calming info/advice. Thanks in advance.

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12
Susan Costa, , Westport, MA
Thu Sep 3, 2009
Hi Joshua

I closed on a property in Dartmouth MA at the end of July. The hard part is the preapproval and agreeing on the property you want to purchase. Your agent or mortgage person should be walking you through the rest.

Keep in touch with them, the hardest part is waiting for the closing date to arrive.

Good luck.
0 votes
Angela Dolber, Agent, Whitinsville, MA
Thu Sep 3, 2009
Hi Joshua,

I see you have chatted with Erin and I'd love to throw my 2 cents in as well. I assume the signed agreement is the full Purchase and Sales Agreement and that the home inspection went well for you to go forward? If so, then your bank will send out an appraiser to the property, who will look at the condition, size of rooms and foundation, etc. as well as look at the comparable sold properties in the area to come up with a value. If the value is at your purchase price or higher, then you are good to go forward with the sale and the bank is okay with giving you the loan as long as nothing changes with your credit history. Usually it can take a bank from 3-4 weeks from the time of an accepted offer to do up a full Mortgage Commitment letter, which basically states that your credit score is good and finances haven't changed to still buy the home. So I would recommend buying any big purchases after you close on the home! :o)

Once that is obtained, then you can head to closing. At this point you would work wth your attorney to choose a day and time for the closing. They will ask you to bring 2 forms of ID with you, like a driver's license and passport, as well as a bank check if necessary for any closing costs if needed. Plan on a minimum of 1-2 hours or so to be at the closing to sign all the mortgage documents, and then you'll get the keys to the home once the property is recorded at the Registry of Deeds, and you can move into the home anytime after that.

You do have a contingency to get your deposits back if you can't get financed for the home for some reason, so keep that in mind if something does go wrong and your bank can't finance you. But at this point, if the appraisal goes well and you keep things steady with your credit and job history, just keep talking with your mortgage broker and making sure you work with him/her to get all information necessary for the bank to process the loan. Then you should be fine. I hope all goes well with your home buying process!

Angela
Web Reference:  http://www.thedolberteam.com
0 votes
Joshua, Home Buyer, Charlton, MA
Wed Sep 2, 2009
Thanks for all your help.
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Joshua, Home Buyer, Charlton, MA
Wed Sep 2, 2009
Oh geez. Will the 1 time pull drop my credit below the 620?
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Erin Rowley…, Agent, Savannah, GA
Wed Sep 2, 2009
When you pull your credit too too many times, it will bring your score down. It will come back up, in time.

The 580 score is possible here in some of the new homes communities, with a preferred lender. Because of the quantity of loans he writes, he can buy down points and make the lower score possible. That's why I asked about that.

You are pretty close to the threshold, so I might hold off on getting more pre approval's.

Don't borrow worry. Give your loan officer a call, and spill it. I am sure (s)he will give you the advice you need.
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Joshua, Home Buyer, Charlton, MA
Wed Sep 2, 2009
It's a resale home. Sorry
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Joshua, Home Buyer, Charlton, MA
Wed Sep 2, 2009
In mass the credit limit is 620. I am currently at 626. My income is currently at 85K with a 17% DTI. Could you explain the part about Dinging my credit please. Thanks
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Erin Rowley…, Agent, Savannah, GA
Wed Sep 2, 2009
It may or may not help... you have a 2 week period from your initial credit score pull for mortgage, to look with other lenders, before it will ding your credit... It may be beneficial to get another approval, shop around, whatever you want to call it.... Is it a new home community you are buying in or a re sell property?

In my area the USDA loan will accept a credit score as low as 580, so long as the debt to income ratio is pretty low. Just to give you a little more detail.

I guess if you are worrying about a potential financial pit fall, maybe you should talk to your lender. He/She already knows your financial story and may be able to address your concerns more specifically.
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Joshua, Home Buyer, Charlton, MA
Wed Sep 2, 2009
I have only dealt with one lender and things have been fine. I'm just new to the experience and concerned about potential pitfalls. That's why I was questioning the strength of a pre approval. Would it help if I laid out my info?
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Erin Rowley…, Agent, Savannah, GA
Wed Sep 2, 2009
Hmmm... is there something you feel might be an issue? Did you speak to more than one lender?
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Joshua, Home Buyer, Charlton, MA
Wed Sep 2, 2009
What I would like to know is how secure is a pre approval? The more I read online the more questions/concerns I have. Is it typical that things go wrong during the underwriting process or should I feel comfortable that everything should work out? Thanks
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Erin Rowley…, Agent, Savannah, GA
Wed Sep 2, 2009
Josh,

The USDA program is alive & QUITE well in my area. Now what you are waiting for is:

1 inspections/appraisals.
2 pending findings, repairs.
3 if repairs are needed, approval by appraiser
4 loan package to under writers.
5 loan package to closing attorney
6 your big day!

Your agent should keep you in the loop. If there is any reason for a new decision, or concern, agent will let you know.

Be careful not to make any big purchases that could affect your debt vs income ratio. Keep your job.

It sounds like a lot, but for the most part, the hard stuff is over.

If anything happens during your inspections, come back here and vent. The USDA program can be great.
0 votes
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