Hey everybody it’s Jimmy Vercellino here, so now you’ve determined that you’re eligible for a VA home loan. Congratulations! Give me a pound. That’s what I’m talking about, right? You’re eligible for a VA home loan. Well, now guess what?
You’ve got to go out there and get pre-qualified so you can utilize your VA home loan benefit. What does that even mean? Well, remember what I told you earlier the VA loan? It’s one thing to be eligible, but now you have to have the proper credit scores.
You have to have the proper income and the mortgage lender, the one who’s lending you the money after all, has to determine that you are a credit worthy borrower. In other words, that you have the ability to repay that loan. Pretty straightforward, right? So what we’re going to do is pre-qualify you. How do you get pre-qualified? You get pre-qualified by going to VALoansForVets.com and submitting an online loan application.
From there, a member of our team will reach out to you to go over the application in greater detail. So from there, the mortgage lender, somebody like myself will review all of your liabilities, will review your monthly income and will review what the new mortgage payment is going to be on the home that you’re looking at. So from there, we’re going to take all of your liabilities, your new mortgage and we’re going to divide into your monthly income.
So for example, let’s just say that the total monthly liabilities and the new mortgage payment was $4,000 a month and let’s just say that the veteran had $10,000 a month in income. The debt to income ratio there, if you’re following along, would be 40%, 40% DTI, which is right below where the VA likes that number to be at, or around a 41%. Now I’ve got good news.
As long as you meet the residual income factor requirement, in some cases, Veterans can go even higher than that, up to a 50% debt to income ratio where I’ve even seen DTI’s go higher and still get approved. So that’s a little bit about how to get pre-qualified for a VA loan.
Once you’ve been given a copy of your certified pre-qual letter, it’s time to go other there and put some rounds down range. Give it to your Real Estate agent.
Make sure that your Real Estate agent is communicating with your mortgage lender so that way they can lock arms right? And go out there and help you identify and find your dream home utilizing your VA home loan benefit. My name is Jimmy Vercellino, Marine Veteran.
If you have more questions, we are always here to be a resource for you. Thank you so much.