The application process for VA loans is different from other types, because you must first begin by showing proof of your military status. Lenders must also abide by certain guidelines that make it easier for you to buy a home, such as offering an affordable interest rate.
Although hearing that you can opt out of a down payment may make you relax, you may also have concerns about getting approved in the first place.
If this is your first time seeking a VA loan, the entire process can seem confusing. Yet, it really is quite straightforward. Below are some tips to help you get started. Working with a loan specialist is your best bet for getting approved. The highly motivated, truly dedicated Vercellino Team can help you every step of the way and provide loans nationwide.
Get Proof of Your Eligibility
There are several forms that a lender will ask for, to see proof of your eligibility to participate in the program. For example, most veterans will need a copy of their discharge papers, which is form DD-214.
Lenders also ask for a Certificate of Eligibility that is issued by the federal government. Your COE is your proof in hand that you give to lenders to show them that the VA has already deemed you to be eligible for help buying a house.
You should obtain your eligibility documents as soon as you know you are ready to apply for a loan so that you can move the process forward faster.
Find Out Your Credit Score
One of the biggest benefits of VA loans is that you can feel better about meeting the credit score requirements. However, that only means that you can relax a little. Most lenders still require you to have a score within the range of 600 to 650. This is considerably lower than what is required for conventional loans, but you may still need to do some work on your credit.
Once you know that your score is within a good range, make sure to keep it that way. Avoid opening up new lines of credit or failing to make a payment. As a general rule, having a higher than expected score can help you get the best possible interest rates.
Stay Within the Guidelines
In some cases, you may be able to use a VA loan to buy a second home. This is usually only allowable if you can prove a need for two primary residences, such as giving your family a place to live while you are assigned to work several states away. Needing to buy a home while you are still waiting to sell the old one may also still be within the guidelines.
Keep in mind that these special cases must go through a process to get approved that involves getting a waiver from the VA.
The process of getting approved for a VA home loan is a team effort. You can do your part by making sure to gather any information that we request and keeping your credit score up.
As questions arise, be sure to seek out our advice. Our loan specialists are always ready with ideas to help streamline the process of helping you get your loan approved.