What are Five Things “To Do” for a Successful USDA Mortgage Application?
What are Five Things “To Do” for a Successful USDA Mortgage Application?
Submitting your USDA mortgage application, looking for the right home, and preparing an offer are all part of purchasing a home.
However, because of the overwhelming amount of information, it is important to not let important financing details slip through the cracks. Understanding what are the right and wrong things “to do” during the USDA mortgage application process can go a long way!
In today’s short video tip, I will discuss five important things “TO DO” in order to keep your USDA mortgage application headed in the right direction. Additionally, you can always use these FREE USDA Resources to help each step of the way!
5 Things “To Do” for a Successful USDA Mortgage Application
1. Keep your payments on-time!
As you can imagine, late payments on your credit report can have a major negative impact on your credit scores which in turn can hurt your USDA mortgage application process. We realize life that an oversight can happen and while it may not be intentional, understand that the impact will be the same.
It is critical to stay organized with your finances because just one 30-day late payment can stop the loan process in its tracks.
2. Manage your credit card balances
It is very important to monitor and keep your credit card balances low in comparison to your credit card limit. In fact, it isn’t the balance that counts, but the ratio of your balance when compared to your credit limit.
Having credit cards that are maxed out or near their limit can be a major contributing factor in lowering your credit score.
Remember, it is also equally important to not close out credit cards account! Once you pay off and close out an account, you are also eliminating the available credit that comes along with having a low balance.
3. Don’t let medical collections become an issue!
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.
After you have a medical procedure, it is important to stay on top of the billing and any potential invoices that may be outstanding.
4. USDA Verification 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.
Also, you have pay to a management company or an apartment complex, these are both considered institutional sources where we can obtain your verification of rent (VOR) from.
Here is a short video which further explains USDA verification of rent requirements.
5. Don’t be afraid to ask questions!
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 mortgage application 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
P.S. -You can download our “USDA Condo Approval Checklist” by CLICKING HERE
