Five Things “To Do” for a Successful USDA Application

Qualifying for a mortgage, looking at properties, and preparing an offer are all steps that require professional guidance. However, with all of the information available, it can be hard to know what is right and wrong during the USDA application process.

In today’s short video tip, I’ll review five important things “TO DO” for your USDA application in order to keep your dream of homeownership on the right track. Plus, go here and download all of our FREE USDA Resources to help each step of the way!

5 Things “To Do” for a Successful USDA Application

1. Stay current on your existing accounts

If there are late payments on your existing mortgage, car payment, or any other loans that report to the credit bureaus, it could dramatically drop your credit score. This can eliminate your ability to purchase a home.

Just one 30-day late payment has the ability to quickly and drastically reduce your credit score.

2. Maintain appropriate credit card balances

It is very important to make sure that your credit card balances are low in comparison to your credit card limit. In fact, it isn’t the balance that counts, but the ratio of your balance in comparison to your credit limit.

Having credit cards that are at or near their limit can greatly damage your credit score.

3. Make sure medical collections are taken care of

Often, I see a small medical collection that was a result of miscommunication between the insurance company, doctor’s office, and the patient. This can rapidly decrease your credit scores and in some cases can be a reason for loan denial.

4. Gather proof of Rental History

When rental history is required, paying by check is a clear way to verify your payment history. While paying by cash or money order may seem convenient, it will not always be an acceptable form of verification by underwriting.

5. Don’t be afraid to ask for advice

As an approved USDA mortgage lender, we are your best resource for details about what actions can help or hinder your loan approval.

If you have any questions or concerns about a financial event you are considering during the loan process, please let us know prior to taking action.

We are here to help you navigate the USDA process and make it as smooth as possible. In fact, we have created several free USDA resources to help you along the way. Plus, you can always call or email to discuss your scenario and let us show you the Metroplex difference!

800-806-9836 Ext. 280
SeanS@MPLX.org