5 Strategies for Strengthening Your VA Loan Application
5 Strategies for Strengthening Your VA Loan Application
VA loans provide an excellent opportunity for active duty service members, veterans, surviving spouses and their families to buy a home. But, with eligibility requirements, some people might find it tough to get approved for this type of loan. Fortunately, there are 5 strategies for strengthening your VA loan application.
Applying for a VA Loan
Applying for a VA loan can be a difficult process. If eligible for VA loan benefits, you’ll need to get a Certificate of Eligibility (COE). HomePromise can get this for you often faster than going to the VA directly.
We use a VA lender portal online to make getting your COE fast. This document proves that you’re eligible for the VA Loan program.
Call HomePromise at 800-720-0250 to ask for your COE today.
Be sure to have all of your financial documentation in order before starting your application. This includes things like pay stubs, tax returns, asset statements, and more. We will need this information to determine if you qualify for the loan. This information will also determine how much we’re willing to lend you.
If you have any questions, don’t hesitate to reach out to a VA loan expert with HomePromise at 800-720-0250 for assistance. Our experts are always ready to help give you advice. Call today to see if you qualify to access affordable homeownership opportunities.
1. Check Your Credit Score
A good credit score is important for many reasons. This can help you get the best interest rates on loans and credit cards. It can also help you qualify for a mortgage.
A strong credit score is beneficial. It indicates to lenders that you can be trusted as a borrower. This could result in more favorable terms and conditions on your loans.
In addition, a good credit score can help you qualify for a mortgage or car loan with more favorable terms. Having a good credit score may even help you save money on your insurance premiums.
2. Getting Pre-Qualified with a VA Lender
Veterans and active duty military members may be eligible for a VA loan. This type of loan is also a great option for those with a service connected disability. The Department of Veterans Affairs provides a guarantee for these mortgage loans. The VA does not lend money, that’s done by VA approved lenders like HomePromise.
The first step in applying for a VA loan is to get pre-qualified by a VA approved lender. Pre-qualifying means the lender has evaluated your credit score and determined if you meet their standards for a VA loan.
Getting pre-qualified will give you an advantage when you’re ready to make an offer on a home. A pre-qualified letter will let the seller know that you’re likely to be approved for financing.
To get pre-approved for a VA loan, contact HomePromise at 800-720-0250. HomePromise will then obtain your credit report and evaluate your income and debts. If you qualify, HomePromise will provide you with a letter stating the amount of money you’re eligible to borrow.
Keep in mind that being pre-qualified for a VA loan does not guarantee that your loan will be approved. Other requirements for VA loans are as follows:
- The home you choose must meet VA property requirements
- The appraised value would have to be at or above your purchase price
- In most states you will need a wood destroying insect inspection
- A title insurance company will need to issue a title policy
HomePromise as a VA lender will help you get through all of these steps.
Call today at 800-720-0250 to get started.
3. The VA Home Loan Application Process
The VA home loan application process can be lengthy and complex. However, there are certain things you can do to strengthen your application and improve your chances of getting approved.
One of the most important things you can do is to make sure all of your financial documentation is in order. This includes your tax returns, pay stubs, bank statements, and any other relevant paperwork. Organizing your documentation makes it easier for a VA loan expert to review your application. This helps a VA loan underwriter give you a decision quickly.
To increase your chances of being approved for a VA home loan, you should have a good credit score. Improving your credit score can help you secure a loan. The higher your credit score, the more favorable you will look. But, some lenders, like HomePromise can even help you with a credit score as low as 580.
To get a higher score, pay off any outstanding delinquent debts or collection accounts before applying for a VA home loan. Doing so will ensure your application is successful.
Finally, it’s always a good idea to work with a qualified and experienced VA-approved lender. HomePromise can assist you throughout the entire process and help make sure everything is done correctly.
4. Appraisals and Inspections
VA appraisals are required in order to obtain a VA loan. Appraisals are conducted by a licensed appraiser and are good for six months from completion. The purpose of the appraisal is to determine the value of the property being purchased.
Home inspections are conducted by a home inspector. In some states home inspections must be done by certified home inspectors. The purpose of the inspection is to ensure that the property meets minimum safety and habitability standards.
5. Financing Your VA Loan Closing Costs
You can’t finance your closing costs on a VA loan when you buy a home. But, you can finance your VA Funding Fee.
Like many veterans, you may need to finance your VA Funding Fee when you purchase your home. The VA Funding Fee is a charge from the VA to guarantee your VA loan. You can pay it in cash at closing or roll it into your loan amount.
Even though you can’t finance your closing costs when you buy a home, another option is to negotiate with the seller to pay some or all of the closing costs. The seller may be more willing to make concessions when they need to sell quickly. Seller paid closing costs is a common strategy.
VA Debt Consolidation Loans & Military Debt Consolidation
Even with the best of intentions, bills can start to pile up. From unexpected medical bills to high interest credit cards, debt can happen to anyone. Other expenses like college tuition, delinquent taxes, and second mortgages can also cause financial stress. For veterans and military families currently experiencing financial difficulties, VA military debt consolidation loans can help.