First Time Homebuyers (contingency, documents, appraisal, mortgage companies)

[Kaadkins]

My husband and I are buying our first home together. We found a home that we really love and went to the bank. We wanted to view our options for financing. Our LO told us that he used a secondary lender and would contact him for our options. He responded by telling us that we might be able to be approved for a USDA rural housing loan. We first went to the seller (FSBO) and negotiated a price and then completed our application. All of our paperwork has been sent to the lender. We just want to know what kind of time scale we are looking at and what the process will be like if we do get approved for this loan. Any insight would be appreciated!

[MrRational]

Originally Posted by Kaadkins

We wanted to view our options for financing.
Any insight would be appreciated!

Options starts with (or are limited by) the objective data that you should know:
credit reports, FICO scores, cash reserves, income:debt, assets:debt
You should be able to present this data to a lender (they'll do their own confirmation anyway).

[Broker Dave]

Typically takes 3 to 4 weeks for the mortgage company and due to current workload at USDA another 2 to 3 weeks for them to preview and underwrite the loan.

It all depends on when the home inspection is ordered and you accept the outcome. Due to the cost of the appraisal mortgage companies don't like to order it until the inspection contingency of the contract is removed by your accepting of the report including the WDO.

Hope this helps,

[jcraig10]

We are also 1st time homebuyers using the USDA loan. Lets just say we are set to close on THIS friday (like in 4 days) and everything is not finalized yet. Our offer was accepted May 16th. However, our loan was approved with conditions last week on the 25th. Those conditions were for the appraiser to handle. We have been told that everything should be finalized tomorrow....... I hope.

Hope yours isn't as last minute as ours is

[NinaN]

Part of this is how diligent your lender is. I represented a seller recently and the buyer had a USDA loan. We closed in 28 days. Get ALL requested documents to the lender the moment they ask so it doesn't delay your process.