How Can I Qualify For USDA Loans?
A USDA (United States Department of Agriculture) loan is a great option for many potential homebuyers. The reason for this is that there is no down payment required, so buyers all around Louisville, KY can purchase a home even if they don’t have savings. However, for first-time homebuyers, especially, the qualification process can be a bit overwhelming. We’ve detailed some of the steps you will go through if you are interested in buying a home with the USDA program.
- Determine if You Qualify – The USDA lending program is only open to certain income levels. This varies depending on your location and family makeup. Talk to a lender knowledgeable about USDA loans to find out if you would qualify.
- Get Preapproved – Preapproval will make buying your dream home easier and the process smoother. Your lender will be able to tell you what it takes to qualify.
- Find a Home that Qualifies – Not every home qualifies for USDA lending. You can often find homes that would qualify for a USDA loan on websites like Zillow or Trulia, or if you’re working with an agent, he or she will be able to give you insight.
- Go through the Inspection/Appraisal Process – The home will need to appraise for the sales price and the inspector may find issues that must be corrected before approval.
- Put in an Offer and Get Approval – Once you’ve found a home and have a contract on it, your lender will put together your information and send it for approval to an underwriter.
- Closing – Once you’ve been approved and the home appraises, closing will be scheduled. At this point, the process should be just like any other home purchase. Remember, you won’t need a down payment, but there may be closing costs for which you are responsible, depending on the deal you’ve negotiated.
Finally, realize that purchasing a home using ANY loan can be a complicated process. The best way to make sure you are on the right path is to work with an experienced lending company. Liberty Financial in Louisville, KY is highly experienced with USDA loans as well as other popular borrowing programs. Give us a call today, and we’ll help you get started.