Don’t Do This When Pre-Qualifying for a USDA Home Loan
USDA Home Loan Pre-Qualification Requirements – What Not to Do
USDA home loan pre-qualification process is not really complex and the requirements are really very simple as compared to other more conventional loan programs. However, for a first time applicant the USDA loan eligibility process can be tricky and one can make mistakes that can even cost you the chances of getting your USDA loan.
Let us discuss some of the things that a prospective USDA loan applicant must avoid at all costs while going through the pre-qualification requirement process:
- Opening any new credit account while going through the pre-qualification process is a big no-no. If you are planning to buy new furniture or a new car, then forget about it until your home purchase is closed and final. Opening a new credit account will have an adverse affect on a lot of variables in your USDA pre-qualification, including your credit score as well as your debt to income ratio. The new debt will not only have an impact on your credit scores but it may also affect the new credit score inquires from the creditor
- Changing a job while in the middle of the USDA pre-qualification process might be a bad idea. This is why it is extremely important that you talk to your USDA loan officer before deciding on changing your job. Remember, the pre-approval procedure is based on the original information that your provide on your application. Changing your job or any gap in employment period can alter that information and have an adverse impact on your USDA approval
- Moving money around in various accounts must be avoided. The reason behind this is simple. While you’re USDA underwriting process the underwriter will review all your bank statements in order to check any abnormal pattern in your financial statements. This is done to avoid the chances of fraud in the future. Money moving in different accounts can look suspicious and may slow down your qualification process