If you are a returning member of the services or a veteran of any branch of the United States Military, then you might be able to get much more help than you had originally anticipated in terms of securing a property back home and being able to settle down with your nonmilitary future in mind.
This help can be granted in the form of a VA loan, is a loan system that is specially reserved for current and ex-service members who are looking to get a foot on the property ladder but perhaps do not meet the requirements of a generic home loan provider. If you use an online VA loan calculator like WhatsMyPayment to find that you do indeed qualify for this kind of assistance, then the next stage is doing everything that you can in order to make sure it comes together for you.
With this in mind, here are eight essential tips to help you land a VA loan.
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Begin Without A COE
With a VA loan, a lack of certain paperwork does mean that entry is barred. You don’t need a Certificate of Eligibility in your possession to actually start the VA home loan process. Lenders will often be able to get this done for you during the preapproval process. Don’t let not having a COE prevent you from getting the ball rolling.
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Understand Your Credit Report
It is essential to know your credit history and score when it comes to applying for a home loan of any kind. For a VA loan in particular, you don’t need to have as perfect a credit score as some other kinds of loans and mortgages, but it is still recommended that you do all of your homework to be able to answer the questions in the loan application process.
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Know The Acceptable Uses
VA loans are intended to be used to purchase or refinance primary residences of veterans, and this can be a single family residence, a new build, a modular home, a condo or a multiunit property as long as you intend to live in one of the units. What it isn’t, is a scheme for buying vacation homes, working farms or investment properties.
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Understand The Occupancy Requirements
VA loans come with a list of occupancy requirements, the most important being that you are expected to be living in the property as your primary residence within 60 days of closing the deal. This is definitely something to think about if you are a current service member who is deployed, or a military contractor working overseas. In these cases, there are sometimes opportunities for a spouse to fulfill this requirement instead.
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Have A Reliable Income
Though the financial requirements are not as stringent for a VA loan, something that is still essential is that you are able to prove a steady, reliable source of income before being accepted for the loan. The VA system aims for client debt to income ratio to be under 41 percent. Having at least two years history in the same current employment is also something that is a big tick in the box.
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Loan Pre Approval Is Essential
Getting pre-approved for your mortgage is important for a number of reasons. Firstly, it gives you a clear sense of your purchasing power, and secondly, it shows the sellers that you are a serious buyer who has done their homework. Some agents always counsel their clients to reject offers that are not equipped with a pre-approval letter, so it can make all the difference.
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Hire A VA Savvy Real Estate Agent
One of the best things that you can do to increase your property buying power and success is hiring a real estate agent who has had previous experience with the VA loan system. It is slightly different from others and brings a different set of requirements.
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Keep Your Credit Score Clean
Once you’ve applied for a mortgage, make sure to be extra careful with your credit history and how you handle your money. Don’t bring up too many red flags like moving cash around in different accounts etc.
Even though the VA loan system is designed to be of real assistance to US veterans, it is still best to be prepared, to have a good credit score and be in control of your finances.
For veterans and active-duty service members to receive VA home loan advantages and help them reach their housing aspirations on favorable terms, obtaining a va Certificate of Eligibility letter is a necessary first step.