What is the first step in the USDA loan process?

The first step in the USDA loan process involves the loan originator interviewing the applicant. This initial interaction is crucial as it allows the lender to gather necessary information about the applicant's financial situation, including credit history, income, employment status, and other relevant details. During this interview, the loan originator assesses the applicant's eligibility for the USDA loan program, discusses the specifics of the loan process, and explains the various requirements that must be met.

Establishing a clear understanding of the applicant's situation helps the lender to determine eligibility and identify the best loan options available to the applicant. Subsequently, based on the information gathered during the interview, the lender can proceed with the process, which includes submitting documentation to the Rural Development office for a conditional commitment and ultimately processing the closing paperwork. Each of these subsequent steps builds upon the foundation laid during the initial interview with the applicant.