Home Loan Learning Center

What Is the Qualification Process For A Mortgage

The process of acquiring usda loans from the guaranteed program can be remarkably convenient and quick. After entering some information online, we will do our best to contact you via the telephone number you provided. When we do get in touch with you, one of our Loan Officer Assistants will have a brief conversation with you regarding things like your desired loan amount, credit score, open lines of credit, your income, and finally your current

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USDA Loan Preapproval and Prequalification Process

USDA loans are backed by the United States Department of Agriculture and are aimed at people wishing to buy a property in a rural area. People working from home or who can adjust their lifestyle to a rural setting can benefit from low mortgage rates and favorable terms and conditions on their mortgage with a USDA loan.  Before you start looking for a home that qualifies under the USDA home loan requirements, you should get

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USDA Bankruptcy Waiting Period – Loan After Chapters 7 and 13

Understanding the Path Forward Filing for bankruptcy doesn’t mean you can’t obtain a home. Chapters 7 and 13 are legal arrangements that help people overcome financial difficulties and bounce back. Mortgage after bankruptcy is still an option.  Generally, you need to wait 3 years after Chapter 7 bankruptcy before you apply for a USDA home loan. However, there are ways to reduce this time to as low as 12 months.  If you have previously filed

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Why is the underwriter asking for more documents

As a first time home buyer, this question may be haunting you throughout the loan process. Here are a few reasons why your underwriter may ask for more documents. The original documents sent in for review didn’t cover all the requirements to get your loan approved. Or, the documents opened questions the underwriter needs answers or more documents to clear up. Your original loan application changed. There was a risk flagged on your loan First

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What is a Sourced Deposit?

The underwriter is requesting you send “source documents” for non-payroll deposits over $100 showing on your bank statements. What exactly does “source documents” means? These documents are the original record of transaction and can be used as evidence that a transaction occurred. You must tell the underwriter in writing along with sending supporting documents or “source” documents for each transaction the underwriter is questioning. You must address each deposit date and amount. Each document should include

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USDA Preliminary Approval Process

The USDA Guaranteed 502 Program is an excellent loan for any individual interested in a home purchase.  It allows for minimal out of pocket cost and helps people obtain property in a manner unlike any other mortgage program. Society Mortgage is a leader in this industry and specializes in this particular loan program.  If you would like to see if you can qualify for the program and see how best Society Mortgagecan help you out,

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What Is A Pre Approval Letter?

One of the most important things in buying a house is getting a prequalification. Getting a prequalification not only allows you to know that you have the ability to buy a house, but it allows you to know what your price point is. It is an emotional roller coaster if you find the house of your dreams, but then you find out you are not eligible, due to your income or debts.   When you get

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UDSA & FHA Septic And Well Distance Requirements

An inspector from the local health department or a laboratory certified by the state takes water samples for testing. State laboratories performing analyses of drinking water compliance samples must meet the minimum criteria established by the US Environmental Protection Agency (EPA) to qualify for certification. Well water samples are tested for the presence of coliform bacteria, lead and nitrates. Certain bacteria present in drinking water can transmit infectious diseases. Analyzing water quality may also include

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What Is The Difference Between USDA Guaranteed And Direct Loan

One thing many potential borrowers are unaware of is that there are two distinct types of USDA loans, the Direct and the Guaranteed. The Direct loan is intended for very low to low incomes. Unlike the guaranteed which is funded by a bank or traditional lender, the Direct is actually funded directly by USDA. The Guaranteed loan allows a borrower’s income to be up to 115% of the median area income. However, the Direct only

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How Much Is The USDA Funding Fee?

When you hear 100% financing, no money down as an option for a loan most people say, “no way, not possible, what’s the catch?” Many people, including lenders do not even know this loan program exists.   What is the name of this loan and how does it work? It goes by a few different names: USDA Rural Development Home Loan, USDA Home Loans, RD Government loans.  No matter what you call them, there is

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Letter of Explanation for Credit Inquiries – How to Write One?

When you apply for a mortgage, your lender may request a letter to check your credit score and credit history. Part of this financial background check includes credit inquiries and any gaps in employment history. A credit inquiry is when a lender checks your credit report to assess your creditworthiness with the prospect of lending you money. Too many different credit inquiries can imply you have applied for several loans. This could mean you have

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USDA Structure & Property Requirements

When looking into a home purchase the USDA Home loan program is a great option as it is intended to help individuals get into a home without having to put a down payment on the property.   However, the USDA program has a lot of guidelines that have to be met for qualifying purposes that may differ from the traditional mortgage programs available.  Having a clear understanding of the specific requirements will make the process of

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What Is A USDA Construction Loan? Requirements for 2024

USDA considers a property new construction if the dwelling has been built within 12 months and has never been occupied. There are 2 major requirements that must be met for USDA Loans on a new construction: The first major requirement is that the lender is required to obtain evidence that a new construction property was built in compliance with certified plans and specifications (e.g., International Residential Code, CABO, BOCA, etc.). This can be done in

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Appraisals Versus Home Inspections

Do I need both?  Home appraisals tell you how much a home is worth, and a home inspection tells you why you might not want to buy it, regardless of price. Both processes have the capacity to derail home purchases. Low appraisals sometimes sink loan approvals and disastrous home inspection reports might cause buyers to rethink purchase offers. Home appraisals are estimates of the market value of a home made by professionals, according to guidelines

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What is a RESPA?

The Real Estate Settlement Procedures Act (RESPA) is an act passed by Congress in 1974.  It was designed to protect potential homeowners and enable them to become more informed consumers.  This act requires lenders to provide more information to borrowers at certain points in the loan process and prohibits referral fees and kickbacks between lenders and third-party settlement service agents in the settlement process.  Some disclosures list out the costs of the settlement, outline lender

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How To Get A Zero-down Mortgage

Here at Consumer Real Estate we specialize in helping individuals utilize the USDA Home Loan Program to make the dream of home ownership a reality. The USDA Home Loan program is a 100% financed program that allows people to purchase a new home with no down payment at all.  It is meant to make the home buying process a bit easier and put less financial strain on an individual at the time of purchase! What

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Why I Love Being a Loan Officer.

Being a loan officer is the greatest job someone could have.   In my position, I get to work with someone from the first time they call in or fill out an online questionnaire and see them into their first home or sometimes maybe the home they plan on growing old in.   All situations are different. But all are equally rewarding.   My favorite however, is working with the client who at one time

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