02-26-2012 09:11 AM
Hello everyone! I wanted to share my loan process so far.
This has been such a long process my dates may be off inthe beginning but I can give estimates.
Submitted preapproval in September. Received a phone call first notifying my that the complete package would be sent for me to fill out and return. I submitted everything and anything I could think of, including a LOE for a judgment I was making monthly payments on. I sent this in the middle of October.
I received my certificate of eligibility in the middle of December and started shopping right away.
It took almost a month of going back and forth to reach an amicable purchase offer on a property that had everything I was looking for. The price was originally listed at $120k. They lowered it to $99.9. We settled on $87 with $4k in closing costs from seller. They wanted an addendum that they would not make any or pay for any repairs. I agreed since the house seemed to be in great shape, plus the contract stated anything over $500 I was allowed to walk away from the deal if I so choose. I also submitted $500 for good faith payment.
Sent in the paperwork to USDA the end of January. Received my GFE February 2nd.
Immediately scheduled the inspection for January 31st. A friend did this for $300. I received the report a few days later with some minor repairs that would need to be made.
I got many quotes and finally settled on an insurance agent and sent the quote to my underwriter.
My underwriter contacted me the second week in February saying that because the square footage was above the normal 2,000 by 112 feet they would need to determine if I could afford the utilities. I had already gotten a monthly average from the utility company verbally but USDA wanted 12 months worth of bills. After a week of going back and forth, and research on my part, it was determined that they are only supposed to count living space. The finished basement is not considered living space therefore I was in the clear.
USDA did their walk through 2/7. An appraisal was ordered and completed 2/17. I have no idea yet what it appraised at. I received my funding commitment dated 2/24 with a list of contigencies. They were able to set aside $2,400 for the repairs if I choose to finance them so I need to get 2 estimates for the repairs. I don't believe they will cost that much. They consist of loose outlets, a rubber boot is needed a pipe on the roof, some shingles needed to be nailed down, one piece of siding needs to be sealed and nailed in, the flue pipe on the hot water tank needs to be replaced, electrical tape around something on the furnace, a stair railing secured better, and some electrical outlets outside under the addition needs to be repaired. I also need to order a pest/termite inspection. If I had know this was to be required it would already be done. Grr. I need to choose a title agent. I need to submit proof that the judgment was paid off (recently). Still waiting for the seller to submit the survey, the contract states they are responsible for it. And I need to send in a month's worth of paystubs as well as sign some paperwork (funding commitment and attachment to GFE). The GFE lists things that I have already paid for or will need to pay for out of my pocket, i.e. inspection and insurance. It does not include attorney fees or real estate agents commission or my good faith deposit. But so far it is around $4k. They have estimated that I will need $50 at closing.
When I first received that letter I was overwhelmed. But I have since calmed down and made the list and it really isn't that bad. I am still shooting for a closing date no later than the end of March.
I knew this was going to be a long process and I thought I was prepared. This board helped tremendously. But there were still surprises that I had not anticipated (mainly how long the process takes). It is still worth the wait and headaches and work, so far :-)
02-26-2012 02:11 PM
06-09-2012 11:20 AM
Here is my story. We filled out all the paperwork in October 2011 and put our current house on the market. We did not expect to sell our house as quickly as we did, we had an offer in three weeks and closed in January. We are buying a new house that the builder is letting us rent until our USDA Direct loan closes. I put $1000K down and am paying $750.00 a month in rent, since January. I have been told I will get $1000k back at closing since USDA direct is supposed to be a 0 down loan. However I will not get the rent money back that I have paid.
We got our approval letter the end of May and have had the house inspected and appraised, hopefully we will close in early July???
It has been a long process for us because in the state of Indiana there is only one office and I think one person to handle USDA loans for the entire state and of course being a federal employee they get a lot of time off!
06-12-2012 07:52 PM
.... HARD SWALLOW .... I have to move on 08/15/12.
You guys are making me sooooooooooooooo NERVOUS right now!
I am in the process of one now... USDA Direct I am in NY and called my local office (EARLY MAY) , they sent me some pre qualification jargon, and then a letter in the mail. An application in the mail, and a request for documents. I returned all the info 5/24/2012, got a letter 05/28/2012 advising me that my documents have been received in Syracuse (where the UW's are). 06/05/2012, I received salary verification at my job. On 06/07/2012 I received a request for additional documents. On 06/08/12 I returned all of those documents. On 06/08/2012 I also received a written verification of employment at my job. Returned it the same day. I am signed up for First time homebuyer education class this Saturday 06/16/2012. I still have yet to receive letter knowing what I am qualified for, and have eyes set on a home in which the seller is motivated and keeps lowering price. BUT its the perfect USDA direct purchase.... the AGONY!
09-04-2012 10:15 PM
09-10-2012 08:02 PM
My process began in October 2011 the final approval came the end of May this year. My wife & I had a new house built and the builder let us move in and rent from January till we closed on July 9th. Yes it's a long process but it's worth the wait.
09-10-2012 08:47 PM
09-11-2012 11:02 AM
Interesting that you are in NY and got the approval over the 2000 square feet.... I too am in NY and got my GFE yesterday, and found that the funds were WAY lower than what was originally proposed to me. Then when I called to Syracuse today to find out why she told me that because the taxes and the homeowners insurance were more than they calculated is what brought my $ down..... but then she proceeded to tell me that they WOULD NOT over look the 47 square feet that I was above 2000. REALLY USDA????? 2047 sq. ft. ??? a freaking closet. They are rejecting my housing package over a freaking closet.! I am so not happy right now.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.