Buying a home using your hard-earned VA loan benefits can be one of the most rewarding experiences of your life. VA loans are flexible loans by nature, and help military buyers obtain homes with $0 down, and no mortgage insurance. Here are 4 essential tips to obtain a VA loan and prepare you for a smooth home buying experience.
4 Essential Tips to Obtain a VA Loan
Know Your Credit Report
Your credit history will be one of the most important factors when applying for a VA loan. To set you up on the right path, make sure to analyze and understand your credit report. This is the time to dispute any credit errors as credit score plays a big role in obtaining a VA loan. One of the biggest benefits of a VA loan is that you can qualify for a VA home loan with as low as 580 as a credit score. However, a higher credit score can help you lock in a lower interest rate for the VA loan.
Don’t Make Large Purchases Until You Have Your Keys
Avoiding large purchases during your home buying process is one of the key essential tips to obtain a VA loan. As tempting as it is to open credit lines for furniture and appliances while you are in the home buying process, doing so can significantly lower your credit score. If you’re someone on the edge of a qualifying credit score for a VA loan, and you open new credit cards, you could potentially risk losing your loan. It’s best to wait until after you have your keys to start decorating the house.
Use a VA Savvy Real Estate Agent
VA loans aren’t an everyday transaction for all real estate professionals. Using a real estate agent who truly knows this program can save you from potential headaches and hassles. For example, VA savvy real estate agents can help steer you away from properties that could pose serious problems for you during the VA appraisal process. To really get the most personalized experience, it’s best to use a VA savvy real estate agent to help you obtain your VA loan.
Reliable Income is Preferred
Whether you’re applying for a conventional loan or a VA loan, lenders want to see a reliable source of income that likely to continue. You’ll need to have an acceptable debt to income ratio to meet the VA’s requirements for residual income. Two years in the same job is preferred, but it’s tough to always accomplish this when dealing with switching bases. The only way to know where you stand is to talk with your lender. If you have outstanding points in other categories, your lender may be lenient with the reliable income category.
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