chase.tracy, Home Buyer in Forest, VA

Can I get a pre approval for a usda loan before I find a house?

Asked by chase.tracy, Forest, VA Wed Feb 13, 2013

I put in a full price offer on a home. When the builder found out I was planning on using usda loan he didn't accept the offer. I have a pre-approval letter from my lender and I know the house is located in an approved location for the usda loan. I believe the builder is worried that the usda loan process will take too long to settle before we will be able to close the deal? Any suggestions or help would be greatly appreciated! Thank you.

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Tyeshalia, Home Buyer, San Jose, CA
Wed Jun 15, 2016
Only those mortgage lenders and banks that have already been approved by USDA to process rural home loans under its guaranteed mortgage programs should be able to help you secure an approval. Contact them ahead of time to discuss the necessary requirements for loan approval.
1 vote
Usda Mortgage…, , Jacksonville, FL
Sun Apr 20, 2014
Great info can be found at
0 votes
Maria Gilda…, Agent, Manchester, CT
Wed Feb 13, 2013
It was unfortunate that the builder is not fully informed about the USDA loan processing. You can advise the builder to talk to your loan officer to give a more detailed information as to the benefits of the USDA loan and its processing time.

Best of Luck.
0 votes
Meghan Meier, , Schaumburg, IL
Wed Feb 13, 2013
Sellers and realtors have misconceptions about the USDA loans. They no longer "run out of funding" as they did years ago and most offices have their approvals back in 48 hours. They do not take any longer to close than any other loan. I would suggest asking the builder to call your local office directly to ease their mind about these loans. If you need any phone numbers, feel free to contact me and I can point you in the right direction.

Meghan Meier
Senior Mortgage Consultant
Proficio Mortgage
NMLS #231847
877-315-0683 X 7047
"Lend Nationally... No Money Down Programs Still Available"
0 votes
Hi Meghan,

Thank you for your response. When you say have the builder call your local office, do you mean my realtor, financial or usda local office? Thanks again for your response. It is greatly appreciated!
Flag Wed Feb 13, 2013
chase.tracy, Home Buyer, Forest, VA
Wed Feb 13, 2013
Thank you for your responses. I am going ahead with the usda loan. I am just not sure that I can convince the builder to accept my offer. Who would guess that a full price offer with a pre-approval letter from someone with great credit would be turned down!
0 votes
stephen webb…, Agent, Kirkland, WA
Wed Feb 13, 2013
Good Morning
USDA is a very good loan. Have your lender contact USDA and determine if money is available and what the odds are it will be available when you need it. If it looks feasable your loan officer will have a conversation with the builder.
Pre approval letters are acceptable to most everyone in the industry. If your loan officer has seen your credit score and your income is determined to be enough the pre approval is good.
Its important that your loan officer and lender have experience with USDA. If they are experienced all will be good. There is an article on USDA and on choosing a loan officer and lender at Consultation-Interviewing Loan officers and real estate agents will serve you well. Dont let anyone talk you out of USDA it is a very good loan. Good Luck
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Wed Feb 13, 2013
You can get a pre-approval but that is really pretty worthless in reality. If just shows a loan officer "Thinks" you will be given a loan. Things can change and the loan might not be approved. The pre-approval is just an educated guess is all.

USDA is a subsidized loan and the subsidy can run out, not be funded and that sort of thing. They do take longer than most other loans that are not subsidized. If funding runs out it can be months before it could close.Good luck with it
0 votes
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