What must be done with loans prior to the closing?

Prior to closing on a USDA Rural Housing Loan, it is essential to submit the loan to the local Rural Development office. This step is critical as the local office evaluates and processes the loan to ensure it meets all USDA guidelines and eligibility requirements.

Submitting the loan to the local Rural Development office allows for necessary documentation to be reviewed and approved, ensuring that all aspects of the loan are compliant with USDA regulations. This process helps streamline the closing and ensures that the borrower’s eligibility is confirmed based on income limits, property location, and other criteria outlined by the USDA.

While credit checks and discussions with lenders or banks are part of the overall loan origination process, they do not specifically satisfy the requirement of submission to the local Rural Development office, which is necessary for the USDA program.