YOU DO NOT HAVE TO SEND IN YOUR PRE-QUALIFICATION APPLICATION.........This info might help someone who is confident that they will get approved and wants to speed up the wait time, also I believe once you senthis app in...once you have provided all required documentation it buts a time frame on Rural Housing Direct, maybe ...30...60 days sorry I cant remmember exactly.
CHAPTER 3: APPLICATION PROCESSING 3.1 INTRODUCTION This chapter describes the process of accepting and managing applications, up to the point that an applicant is selected for processing. This includes pre-qualifying potential applicants, taking and reviewing applications, and selecting applications for processing. SECTION 1: PRE-QUALIFICATION 3.2 OVERVIEW Pre-qualification involves using unverified information to evaluate the likelihood that a potential applicant, someone who is interested in the program but has yet to submit an application for assistance, would be program eligible. The results of pre-qualification are not binding and will not hinder the submission of an application. A potential applicant with possible obstacles to program eligibility may submit an application and a potential applicant who appears program eligible is not guaranteed that a loan will be made. Pre-qualification, which is strongly encouraged but not required, serves as an opportunity to: Explain the program and the application process; Determine the likelihood of eligibility based on income and other factors; Calculate the likely maximum loan amount; and Encourage the early completion of homeownership education for maximum benefit. The Loan Originator should make clear to the potential applicant the purposes of prequalification, that the pre-qualification results are not binding, and pre-qualification is different than the submission of a formal application. 3.3 PROCEDURES FOR PRE-QUALIFICATION The Loan Originator should provide consistent pre-qualification counseling __________________________________________________________________________________ 3-1 (01-23-03) SPECIAL PN Revised (02-26-13) PN 460 Hi I lCHAPTER 3: APPLICATION PROCESSING HB-1-3550 Paragraph 3.3 Procedures for Pre-Qualification for all potential applicants. Refer to Attachment 3-F for guidance on how to address negative pre-qualification results. Again, the pre-qualification process does not apply to someone who has already submitted an application. Submission of an application triggers disclosure and official Agency action requirements. A. Describe the Program During the course of the pre-qualification review, the Loan Originator should provide as much information as possible about how the program works. Although this information will be repeated during the course of the application and loan approval process, it is important for the potential applicant to begin to understand how the program works and the steps that will be required to obtain a loan. B. Gathering Basic Eligibility and Financial Information Pre-qualification provides an opportunity to consider whether the potential applicant appears to meet the basic eligibility requirements described in detail in Chapter 4. The Loan Originator should enter the information provided by the potential applicant in UniFi as well as their observations on the potential applicant’s diversity (race, ethnic group, etc.) if reliable, register the pre-qualification following the instructions in the DLOS Training Manual, and counsel the potential applicant about the following requirements and restrictions. Creditworthiness. The Loan Originator should advise potential applicants about the Agency’s credit history standards including the ramifications of delinquency on a federal debt. To aid in this discussion, the Loan Originator may order an in-file credit report provided the potential applicant has signed Form RD 3550-1, Authorization to Release Information. The Loan Originator can also check the Department of Housing and Urban Development’s online Credit Alert Interactive Voice Response System (CAIVRS) and MortgageServ’s Borrower Cross Reference screen (Customer/XREF/Social Security). Citizen or qualified alien. The Loan Originator can ask potential applicants about their citizenship status and, for qualified aliens, inform them of the documentation that will be required when an application is submitted. Identity Information. The Loan Originator should explain to potential applicants the documentation required to verify identity when an application is submitted. Requirement to occupy the dwelling. The Loan Originator should explain that the dwelling must serve as a borrower’s primary residence, and confirm that the potential applicant intends to use the loan
