USDA Loan Backlog Questions Answered
Joshua is under contract to purchase a new home and qualified for the USDA loan. He was told by his lender that there is a backup at USDA. His question for Robert Palmer was, â??With your experience with USDA, does that sound about right? Are they backlogged that kind of time?â?
--from anywhere. Joshua in Davenport, Florida. What is your question for Robert Palmer?Good morning, guys.Good morning, Joshua. How are you today?Very well. Actually, coincidence I came across your show this morning. I'm under contract right now to purchase a new home, new construction in Davenport. And I qualified for the USDA loan. And I keep hearing from the original lender that my builder had recommended that right now there's a backup at USDA and they need 15 days, and they use every moment of it. And my builder had suggested that I actually contact you guys. They said you'd be able to get it done a little quicker. With your experience with USDA, does that sound about right? Are they backlogged that kind of time?I think the big time saver is how long it takes your lender to actually get to file the USDA. A USDA may take 10 or 15 days. But how soon are you trying to close on the new house?I'd like to aggressively be at the end of this month. I'm renting right now and I'm going to be breaking a lease. And I don't want to pay an extra month of rent I don't have to pay.I mean the key is basically to get the file to USDA as soon as possible. So what happens is a lot of lenders out there, because the lender has to underwrite the file first and then send it to USDA. And a lot of lenders right now are running 30 to 45 days to get the file underwritten. So then you tack on another 15 for USDA and you could be looking at 60 days to get the deal done.Where we can shine is one, we go ahead and get the file to USDA immediately. If you came into the office Monday or over the phone made application with us, we'd give your file priority because you're trying to get closed quickly. We'd get that file turned around to USDA immediately. And the other thing we do that's a little unique is we continue to work on the file, so that we go ahead and draw the closing package, everything is done. So when that USDA approval comes back, you can actually closed that day.And again, a lot of lenders, what they do is they wait for the USDA to come back and then they kind of go to the next steps. Where I say it's worth it, if USDA says no, I may have wasted a couple hours of resources of the company. But it's worth it to be able to get you into your home on time. So that's the kind of difference is, no one can make USDA go faster, but what we can do is do our part faster and simultaneously, so that you're not as affected by the USDA slow down.OK. Perfect. And one last question for you. I'm a first-time buyer and I was a little apprehensive about applying to yet another mortgage company. But my credit should be good. It's not going to be another hard inquiry if I do it here quick. Because I just applied for my first mortgage a week ago.Yeah. The bureaus are going to lump them together. And really the damages of multiple inquiries, even if they're outside of that window, are not nearly what they used to be. And really where it hurts you is it's more on credit cards and things. The bureaus have recognized that you're not going to try to buy 20 houses. You're trying to get the best deal. But if you're out there applying for 20 credit cards, then you probably are trying to get a lot of debt. So they've done some distinctions now which definitely lowers the effects when you're shopping around for cars and houses, when it comes to having your credit pulled.OK. And with you guys, do I apply online or is the recommended that I give you a call Monday? Because I need to--I'd say with the speed you're trying to move at, call on Monday. Ask for my Assistant Sales Manager. His name is Kevin Lucas. Let him know how quickly, what the situation is, you're trying to close quickly, that you called during the radio show this weekend. And he'll kind of help walk your file through the process. And we'll get you taken care of.All right. Thanks a lot, guys.All right, Joshua. Take it easy.What's the number they should use there, Bud?Locally here, it's 407-802-3344. Or you can visit us on the web, at www.rpfunding.com. And the amazing thing, too, we didn't talk about is we're probably going to save Joshua lot of money. So when we get his offer from the other lender, we'll take a look at it. I'll let everybody know next Saturday. But on USDA loans, we usually come in about $1,500 to $2,000 cheaper in closing costs, just because we don't have the lender fees. And it makes a big difference.So good.
A lot of lenders right now are running 30 to 45 days to get the file underwritten. Then you tack on another 15 for USDA and you could be looking at 60 days to get the deal done.
The key is to get the file to USDA as soon as possible.
What makes RP Funding stand out is that we go ahead and get the file to USDA immediately. If you came into the office or completed an application over the phone, we'd give that file priority because it needs to be closed quickly. Another thing that sets us apart is that we continue to work on the file; we draw the closing package so that when the USDA approval comes back you can close that day. A lot of lenders wait for USDA to come back and then they move onto the next step. No one can make USDA go faster, but by working on our part simultaneously, the buyer is less affected by the USDA slow down.
Also, on USDA loans, RP Funding usually comes in around $1,500 to $2,000 cheaper in closing costs due to the lack of lender fees.