Arizona USDA loans have helped countless families get into the home of their dreams. USDA stands for U.S. Department of Agriculture and they have one main goal: to provide loans in areas where lending is scarce.
Arizona USDA loans are specifically designed to open up the door to home ownership to lower and moderate income earners, Native American tribal governments, the elderly, and persons with disabilities. With as little as zero down and minimal reserve assets, home buyers can get approved for their new home.
Before you apply for your Arizona USDA loans or any other loan, it’s important that you know your credit score. Your credit score is used by lenders to determine several things in the purchase of a home. The most important thing your credit score controls is the interest rate of your loan. The lower your score, the higher the interest rate. When you know your score ahead of applying for a loan, you can take any action needed to help raise it.
You can get your free credit score online from all three credit companies, Equifax, Transunion and Experian. Lenders will look at all three credit scores for an average. If your score is lower than you’d like it to be, don’t despair. There are things you can do to help raise your credit score over time. These things are also important to keep in mind after you apply for your loan:
- Be on time for payments…all payments, from the gas bill to credit card bills to rent.
- Don’t close credit cards you’ve had for long periods of time. The longer you have had a credit card the better, as it indicates a stable history of good credit.
- Try not to max out your credit cards.
- Pay more than the minimum payment on credit cards if you can.
- Don’t apply for new credit cards.
If you’re not sure if Arizona USDA loans are right for you and your financial situation, give us a call. Our job is to find the right loan for you, and get you into your new home as quickly as possible.