The U.S. Department of Agriculture not only supports the nutrition services. The USDA home mortgage finances home buyers focusing on particular rural areas within the United States.
Therefore, if you intend to purchase a rural home in Utah, the USDA loans Utah will help you big time. However, this is so long as you qualify for the USDA rural housing loan Utah.
Just like other home buying programs, USDA Rural housing Utah, comes with a set of requirements to be met by the borrower. Certain mistakes during the application could mean you do not qualify for the loan, or you may end up biting your finger even after buying the property.
In this post, we are going to read through the various mistakes people make while applying for USDA rural housing loan Utah.
1. Not getting preapproved for USDA loans Utah
Are you interested in acquiring a property in Utah through the USDA Rural Housing Utah? Consider getting pre-approved for the USDA home mortgage first. Getting pre-approved for a home mortgage helps you while shopping for a home.
Therefore, the preapproval for USDA Rural housing Utah means that you find a lender who you can work with. In addition, the home mortgage pre approval is a step in the right direction, guiding the intending buyer on the price range when finding a property to purchase.
2. Not working on their credit score
One of the requirements to meet when it comes to qualifying for the USDA home mortgage is showing a willingness to meet the debt obligations. Basically, you need a 640 FICO credit score for the USDA home mortgage lender to consider your application.
3. Not finding out whether the property is eligible
The USDA home mortgage is only available to homebuyers who intend to purchase a property that meets the eligibility requirements. The eligible properties include:
- A single-family home
- New constructions
- Ensure HUD Approved Condos
- FHA approved modular homes
- Planned Unit Development
Therefore, before you waste a lot of time only to find out the property is ineligible; make sure you research the property eligibility requirements.
4. Choosing the wrong USDA home mortgage lenders
For some first time home buyers in Utah, they tend to choose the same bank that their parents borrowed from while building the current home. Whereas this could be so much okay, it is not necessarily that the same bank is your best choice when borrowing USDA rural housing Utah.
5. Applying for more than you can repay
The amount of money that you are preapproved for is not necessarily what you need to buy that house. Note that the USDA rural housing Utah lenders evaluate the size of mortgage based on the outstanding debt, and the current borrower’s income. Therefore, chances are that you may be preapproved for more than you actually need to purchase a home in Rural Utah. Only stick to the original plan of purchasing a house within the price range that you can repay comfortably.
6. Choosing a house before you are pre-approved
Going house hunting before USDA home mortgage pre approval is a common mistake that home buyers tend to make. In a perfect world, it should be that you see pre approval and then embark on house hunting after you know how much you are eligible for under the USDA Rural Housing Utah.
7. Not finding out the eligible areas
The USDA rural housing Utah only extends their loans to the areas that are eligible. Therefore, checkout the USDA eligible areas to avoid spending so much energy trying to apply for a USDA home mortgage only to find out the area is not eligible. Remember that the property should be within the areas defined by the rural housing loan program.
8. Overlooking the other homebuyer programs
There are different home buyer programs that you qualify for. Before you have settled on applying for the USDA loans Utah, check out the other alternatives. This enables the homebuyer to apply for the programs that provide more favorable terms compared to what the USDA home mortgage offers.
9. Not ensuring home is inspected before you have chosen to finance it using USDA Loan
Home inspection will save you from spending amounts that could be used in repaying the USDA home mortgage to repair the house. Therefore, before you have signed for the USDA rural housing loan Utah, make sure you have the property inspected.
10. Not engaging a qualified Loans Advisory Officer
You may have fallen in love with the USDA home mortgage terms. But have you sought expert advisory about the USDA rural housing loan Utah from a qualified loan officer? Ensure you talk to your trusted loans officer before you have finally signed for the mortgage.
Try to avoid the mistakes we have looked into as much as you can possibly do. Therefore, make sure you evaluate what different home mortgage lenders are offering. Do not forget that USDA rural housing Utah is not the only favorable home buyer program in Utah. Therefore, compare the alternative home buying programs to find out if they offer a better option based on the terms and conditions.