Questions about USDA

[bgibs12]

Hi, we're new here! We applied for a USDA Direct loan on 12/23 and my husband's credit was pulled on 12/28.

His FICO score here is 648. He has 3 things in collections on his report from at least 3 years ago, but we've opened up some new credit because we didn't have any open which has helped drastically.

I'm just curious, because I'm driving myself crazy, I talked to our LO today and she said that the verification of bank accounts and employment was sent out. We're rapidly outgrowing our apartment that our land lord doesn't take care of to begin with.

If we were not eligible based on credit, would they have even taken that step? Everything else we're eligible for.

Thank you for any advice!

Oh, also, when can we start looking at houses? Should we wait until we get an approval letter? I'm confused as to how other people do it.

[JM-AM]

Credit score you posted qualifies.

You can look at homes any time you like. Just dont put an offer in yet.

If you start looking at homes, keep track of the ones you like so when your ready to make an offer you dont have to go crazy looking again.

Good luck hope it all works out for you.

[maluba]

Good luck! We're cleaning up our score now so we can apply for a USDA loan (hopefully soon). Keeping my fingers crossed that everything works out for you.

[bgibs12]

Thank you so much! I'm so nervous. In the past the bottom has dropped out of things, so we're very afraid to hold onto anything. Just, knowing what a home would mean for our family (we have a daughter with special needs) makes it seem like we have a lot riding on it. We started this process last July with a 580 mid score, so it's been quite a process. I'm just hoping it all works out!

Good luck to you, too maluba!

[MovingForward_2012]

I was told I had to have a pre approval letter to be able to make an offer. I don't know if this varies state by state or not.

For me, I just started looking for homes I liked and sent out requests online to realtors for more information. When the first realtor called and asked if I was pre approved yet, I told him no and asked if that was required to make offers and he said yes. So he sent me to a great mortgage broker who has a team of loan officers working for him. One of his LOs did the pre approval over the phone by asking me some questions and then asked if it was okay for him to run my credit. I agreed and he told me he would call back in 10 mins with results. He did just that and sent me a letter stating how much I was approved for and a copy of my credit scores and reports. I was initially approved for up to $320K but when we went out looking for homes, we found one that was $352K and the realtor called him and then the LO called me and said he had great news...that I was pre approved for up to $360K. So we ended up going on contract for that one and the builder gave me $15K off. $5K off the price of the home & $10K to cover all closing costs and prepaids. So I said my goodbyes to my broker and had my credit rerun with the in house loan officer and we are on contract!