How Can You Speed Up USDA Approval Time?
It’s a common misconception that all lenders, banks, brokers, and credit unions who offer USDA loans have the same systems in place. In reality, not all lenders are approved by the USDA and this can greatly affect your USDA approval time.
Today, I’ll review why being a USDA approved lender is particularly important for processing, underwriting, documentation, knowledge, and overall efficiency which in the end saves valuable time.
You can also get more USDA mortgage information by downloading our FREE guide: Your USDA Blueprint for Success. This resource will provide you an overview of the USDA home loan process, eligibility requirements, and more!
USDA mortgages are unique in their qualifying criteria, benefits, and the eligible areas they serve. Thus, working directly with a USDA approved lender brings specific advantages! Let’s review the benefits this adds to the loan process.
USDA Processing and Underwriting
USDA approved lenders have direct access to the Guaranteed Underwriting System, otherwise known as “GUS”. This Automated Underwriting System is specific for USDA loans and their eligibility.
When working with GUS, it provides a roadmap for eligibility, maximum debt ratios, and qualifying limits. This is a helpful guide to both realtors and homebuyers when shopping for a home.
Save on Processing and USDA Approval Time
While there can be more steps in the USDA loan process than a conventional loan, USDA approved lenders are able to work directly with USDA field offices. This eliminates the middle man and can greatly improve processing and approval times.
Plus, having direct communication between our office and the USDA specialist is critical for managing the loan file, responding to questions, supplying additional documentation, and providing quick clarification when requested.
Prioritize USDA Loan Specific Documentation
USDA Rural Development requires specific documents as part of their approval process. In turn, a USDA approved lender understands how to prioritize the items needed in order to send the file to the USDA.
While the file is awaiting USDA review, an approved lender can satisfy the remaining underwriting conditions and prepare the file for loan closing once the USDA commitment has been received. This offers a decided advantage in efficiency and timing for any homebuyer and realtor.
USDA Knowledge and Experience
Another great benefit to working with a USDA approved lender, is the amount of expert knowledge they hold. USDA loans cover a specific market, and it’s imperative that lenders know the ins and outs of this unique loan program.
USDA approved lenders understand how the program can be maximized for both consumers and the real estate community.
For an applicant to obtain a USDA home loan, it may not be necessary for them to work directly with an approved lender.
However, for those who can work directly with a USDA approved lender the many benefits we reviewed can be gained.
Here is the USDA Rural Development Approved Lender List (Guaranteed Program) for you to review.
Plus, as an approved USDA lender ourselves, please remember that we are always just a call or email away. We are here as your personal experts and are ready to discuss your scenario. Let us show you the “Metroplex” difference!
I want to thank everyone for their continued referrals and for making us your USDA lender of choice!