Mistakes Veterans Make When Getting VA Loans
Without a complete understanding of the VA loan process, veterans can sometimes make expensive mistakes. Misunderstanding the VA Funding Fee or failing to properly document income are just two mistakes that veterans may make. When applying for a VA loan, it’s always best to learn about the VA loan process before you make an offer on a home.
Veterans looking to buy a home should take the time to research, understand, and ask questions of an expert VA lender to understand all of the documentation requirements. This first step is important to avoid mistakes. Veterans should submit all of the required documentation to an expert VA lender for review and feedback.
Veterans and active duty military home buyers may not effectively calculate income or understand the impact of credit card debt and auto loans. This sometimes leads to shopping for a home that is not affordable. This could lead to unnecessary delays in the process as you end up finding out you’re looking at homes that are too expensive for you to buy.
Mistakes can be avoided by meeting with an expert VA lender, like HomePromise. Our VA loan experts know the ins and outs of your benefits and can address any issues before you submit your application. Call one of our VA loan experts today at 800-720-0250 and we’ll tell you if you’re pre-qualified to buy a home, usually with no down payment!
So, let’s take a look at the top 3 mistakes Veterans make when applying for a VA loan:
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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.
Avoid These 3 Mistakes When Applying
Not getting Pre-Qualified
When buying a home, Veterans should take advantage of the VA loan program. Make sure you become familiar with your VA loan benefits and check to see if you qualify. If you are eligible for VA home loan benefits, working with an expert VA lender is the way to go.
This is the best way to access expert advice specific to your situation. There are numerous options to choose from and VA loan experts can guide you to the best option for you.
If you understand the VA home loan program and get pre-qualified, you are set up in a great position. Once this step is complete, you are ready to find your ideal home and make an offer with lees complications or delays.
As a veteran or active duty military member, it is important to make sure you are pre-qualified by an expert VA lender. Preferably before even working with a real estate agent. If you’re pre-qualified, you get helpful information about your maximum loan amount and sales price which helps guide you and your realtor as you shop for a home.
Without pre-approval, you run the risk of making an offer on a home that you can’t afford. You may also be denied financing altogether by a VA lender. Therefore, obtaining pre-approval should be the first step you take when considering buying a home. Call HomePromise today at 800-720-0250 to talk to our VA loan experts. We will answer your questions so you can see if you qualify for a VA loan.
Not Checking Your Credit Score
While the Department of Veteran Affairs has no specific credit score requirement, checking your credit score is an important step. Your credit score should be the first step in the VA mortgage application process.
Your credit score will determine how likely you are to be approved. A good credit score may also provide favorable interest rate terms offered by VA lenders. Even though there is no credit score requirement set in place by the VA, lenders do have credit score minimums!
Past financial difficulties can hurt your credit score. Before applying, it’s best to check your credit score and try to clean up any negative credit you have. Always check for negative items on your report so you can maximize your chances of approval.
Pulling a credit report ahead of time can save you time in the long run. It will also increase the chances of getting your VA loan approved. Failing to check your credit score and credit history may result in a loan denial by a VA lender.
Before applying for a VA loan, it is important to identify two main issues. The first is to identify any late payments you might have. The second thing you should check is for negative items on your credit report like collection and charge-offs. Late payments and other negative credit can cause your credit score to drop and could impact your ability to get a VA home loan.
Sometimes it is best to pay off collections or other past-due accounts to get approved. Identifying these issues before you submit your offer to buy a home will help you maximize the chances of loan approval and minimize processing times. Our HomePromise VA loan experts are skilled at giving advice about how to improve your credit report. Call today for help at 800-720-0250.
Not Understanding VA Loan Fees
Veterans and active duty military members have access to special VA home loan benefits. These benefits allow them to purchase a home with no down payment, no mortgage insurance, and competitive rates. However, many veterans don’t know that they may still be responsible for other loan closing costs.
It’s important to understand exactly which VA loan fees you’ll have to pay when getting a VA mortgage. Doing so can help you plan accurately for a home purchase and reduce surprises at loan closing.
Applying for a loan can seem difficult. Understanding what lenders require before submitting your application can make the process much smoother. You may need to prove your military service so that you can get a VA Certificate of Eligibility (COE). HomePromise can get your COE from the VA for you through a special VA online system that allows the electronic submission of a request for a COE. Often we get back COEs immediately. Call us for help at 800-720-0250.
Making sure you have these items could increase your chances of a successful application. Understanding what’s expected before applying can help ensure your loan request is considered favorably.
Understand the basics of VA loans
Talk to a HomePromise VA loan expert to understand all VA loan fees, requirements, and options. You’ll get expert advice about the best VA loan for your needs. We will also help you calculate your debt-to-income ratio over the phone. Don’t let common mistakes keep you from using your VA home loan benefits. You’ve worked hard to earn them!
Get informed and start your VA loan application today with HomePromise at 800-720-0250.