Why does USDA in-house underwriting make such a difference?
In-house underwriting occurs when a loan approval is made from within a company instead of having to send it outside to a third party for a credit decision and because we offer USDA in-house underwriting, I am going to show you how this type of authority is able to provide such a tremendous benefit to the USDA loan process. 
Now, before we get started, don’t forget to take advantage and download our USDA Blueprint for Success with this link below.
This free guide is designed to walk you through the process step-by-step and is a great tool for both homebuyers and Realtors alike.
Why is in-house underwriting so important for USDA loans?
What is a USDA Approved Lender
First off, is your lender actually approved by USDA?
While many banks, credit unions, brokers, and lenders may offer the program – very few have dedicated resources set aside specifically for processing, underwriting, and approving USDA Rural Home Loans.
With that being said, if they are not USDA approved, then they will have to submit through an actual approved USDA Lender for underwriting, approval, and in order to work with the USDA field offices.
You may check the USDA Approved Lender list by searching for approved lenders.
Obviously, this just creates additional steps needing more time and as the old saying goes “Too many cooks in the kitchen!”.
Knowledge and Expertise
Secondly, USDA approved lenders have the required knowledge to maximize the program’s benefit through experience with:
- USDA Debt Ratio Waivers
- USDA Credit Waivers
- USDA Processing and Underwriting
- USDA Manual Underwriting for credit scores below 640
- Possible USDA exceptions for bankruptcies and foreclosures
- USDA Home Repair Financing
One Convenient Point of Contact
Last but not least, by working with an actual USDA approved lender, you can have one point of contact responsible for:
- USDA Qualification Process;
- Expediting the file so it can be shipped to USDA;
- Direct communication with USDA field offices; and
- Ability to provide specific updates on status, without having to call an outside lender for details.
In closing, it is good practice to find out if your current lender is actually USDA approved as well as how many USDA loans your loan officer has ever previously closed. These two questions can at least shed some light into their USDA specific experience before you get tangled into a web that leads to an unfortunate outcome.
We appreciate the continued recommendations and trusting us with all of your mortgage needs. Whether it be FHA, USDA, VA, or Conventional Loans – Just 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 Blueprint for Success” by CLICKING HERE
