USDA Loan Questions

[Ryanmalott]

We are in the process of purchasing a home. We are married and both have decent jobs.  We have a few questions beings were first time home buyers.

This USDA will only be in my wifes name due to me having crappy credit.

1. My loan officer said it wouldnt matter if I got a new job offer, which I may be getting soon. Its my dream job but want to make sure it wont have any ill effects. He said it dont matter on me since its only her name on the loan. But they still need to verify my employment.

2. Were about to start the underwriting process, Were using Amerifirst Mortgage. Anything to say about them?

3. She has a few credit cards, I think we kind of have high balances on them, we have money in the bank to pay them down but LO said not to touch money because they dont want to see a lot of activity, it was better to have more money in the bank. Sound right?

4. She has nothing what so ever negitive on her credit, just credit enquires, credit card balances. Fico score is 719, and cant remember credit scores right now Id have to look again.

Sound like we would have any issues during the underwriting process? We first put the offer in and accepted we were told closing would be around April 18 or somewhere near it.

[Ryanmalott]

Here is a little more information

Offer made 2/17/14

Offer Accepted 2/19/14

Inspection 2/26/14

Appraisal 2/27/14

Fico is 719

experian is 647

Transunion is 676

Equifax is 689

Purchase price is $94,000

Interest rate is 4.75% 

APR is 5.420

Term is 30 years

Fixed

Cash to close on Cash to close worksheet is $755.97

When should we really expect to close on the USDA in Ohio?

[Ryanmalott]

Was told our loan is now at the Amerifirst Mortgage Underwriters, 72 hours I was told. Hope all goes well! 

If it gets through them will it most likely get through Rural Development without issues?

[ShanetheMortgageMan]

USDA income eligibility will definitely count your new job's income.  Since you won't be on the loan it won't be used to qualify, but if you are going to be making more money then your amount of eligible income increases, and not sure of what your income is or your county's limits, but it's possible it could put you over the limit.  Definitely have the loan officer go over the numbers to make sure it wouldn't make you ineligible.

Only AmeriFirst I am aware of isn't able to do loans in Ohio, but that is a pretty common name so I suspect there are many company's with a similar name.  With your scores, I suspect that if AmeriFirst's underwriters approve you then you should be fine when USDA reviews you.

[Ryanmalott]

Amerifirst Home mortage, they have offices all over Ohio, I have one local. 

We are hopig to hear something tomorrow or Friday. It was submitted on Monday to the Mortgage underwriter.

[Ryanmalott]

Apparently we made it through Amerifirst Mortgage underwriters. Here is the email we got back today from our Loan officer. So is closing next or another step?

I have received your conditional approval from our underwriter. The only condition is for RD approval and a legible purchase agreement.
Your Realtor sent the legible contract, so at this time I am waiting for the RD approval. RD is currently taking about a week, so we should have the final approval next week for you.

[ShanetheMortgageMan]

USDA reviewing is the next step.  After their review, if they don't add any conditions, then yes closing would come next.

[Ryanmalott]

So your saying once it gets back next week like there saying we can close?

[ShanetheMortgageMan]

As long as USDA doesn't add any conditions, correct.  After USDA sends it back, still will probably take a day or two before the closing docs are sent to the title company for you to sign.

[Ryanmalott]

Update

Things came back good from Amerfirst without issue, went to USDA took about 7 days. Things are good. Suppose to close on our first home today 4/2/14 at 2pm! Was told we would need to pay nothing at closing, in fact there giving us $161.00 back!