Alabama home buyers often ask if they should get their mortgage pre-approval in advance before shopping for a home. The short answer is Yes! Getting your USDA mortgage pre-qualification in advance is important on many levels. First, it demonstrates to the home sellers that you are qualified for home loan financing. Second, it lets you (the prospective homeowner) know exactly all the numbers.
How much you are qualified for, the number of your mortgage payments with taxes, insurance, closing costs, etc. It is generally a good idea to ensure you are prequalified for your USDA loan a month or so before you plan to start looking for that special home. This is even more important, especially for first time home buyers that are doing this for the first time.
So, what do you need to be prepared for the USDA loan application process? What questions will be asked from your loan specialist? Let’s break it all down below:
USDA Loan Application Alabama
- First, be sure you know the exact amount of income you make on a yearly basis. If paid hourly, know your hourly rate and also the frequency of any overtime, etc. Be sure to also the amount of income other members of your household make, even if they are not on the mortgage with you. This is important for USDA loan income limits. Also be sure you have a detailed two-year work history – the name, address, and phone number of all employers over the last two years.
- Living history – Two-year living history will be needed. Your past address, length of time, and name/number of landlord.
- Assets – Name of financial intuitions, the balance of each account, and account numbers. Information about your debts will not be needed as this is generally obtained from your credit report automatically by the lender. However, you will be asked about any child support or alimony requirements you may have and how long they are to continue.
- All of the information above applies to any borrower that is listed on the home loan application.
All the other information is generally things you already know – birthday, social security number, etc. The USDA Rural Housing loan pre qualification process generally takes 15 min over the phone. Once your USDA pre-qualification is complete, your assigned loan specialist can review all the numbers with you and issue your letter of pre-qualification.
At this time is always a good idea to gather up all the documentation needed by your USDA loan specialist. Once the lender or bank verifies your documents, your USDA pre-qualification will be reviewed for a full pre-approval. Keep in mind, pre-qualification is generally a “basic” review of the information you provided. A complete pre APPROVAL is the total verification of all your loan documents and the information provided by the underwriter. The complete USDA pre-approval will generally be looked at better when dealing with home sellers.
What paperwork will you need to obtain the full USDA pre-approval? Below you will find a basic list, some extra documents may be needed in addition to the list below depending on your situation. Each loan case is different.
- Last (3) most recent pay stub
- Last (2) most recent years tax returns
- Last (3) most recent bank account statements
- Last (1) most recent retirement account statements if you have one of these accounts. 401K, IRA, etc.
- Copy of ID (or passport) and social security card.
USDA Mortgage Hub serves home buyers across the nation, including Alabama 100% USDA Loan: Birmingham, Montgomery, Mobile, Huntsville, Tuscaloosa, Hoover, Dothan, Decatur, Auburn, Madison, Florence, Gadsden, Vestavia Hills, Phoenix City, Prattville, Alabaster, Bessemer, Opelika, Enterprise, Homewood, Northport, Anniston, Prichard, Athens, Daphne, Pelham, Oxford, Albertville, Selma, Mountain Brook, Trussville, Troy, Tillmans Corner, Tillmans Corner, Center Point, Helena, Hueytown, Talladega, Fairhope, Ozark, Alexander City, Scottsboro, Cullman, Foley ALA
Questions about getting pre-approved? Please submit the Quick Contact Form on this page. You can also call ph: 800-743-7556