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 doesn’t have to 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, sometimes 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.

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 able 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 many kinds of loans and even credit cards. It can also help you qualify for a mortgage.

To increase your chances of being approved for a VA home loan, your credit score matters. In some cases improving your credit score will be necessary. 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.

There are some strategies to get a higher credit score. For example, you can try paying off any outstanding delinquent debts or collection accounts. Also, you can probably get a better score by paying down your credit card balances. Doing these things may help ensure your application is approved.

2. Get Pre-Qualified with HomePromise

Veterans and active duty military members may be eligible for a VA loan. The Department of Veterans Affairs provides a guarantee for these mortgage loans.This type of loan is also a great option for those with a military service connected disability.

It is important to remember that 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 financial documents to determine 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. 

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

3. The VA Home Loan Application: What You Need

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 to review your application. This helps a VA loan underwriter give you a decision quickly.

Finally, it’s always a good idea to work with a qualified and experienced VA-approved lender like HomePromise. We 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.

The VA appraisal is not a home inspection. A home inspection is a visual assessment of a home’s present condition. Included in a home inspection report is a review of potential problems that will cost money to repair.

VA appraisals are used by lenders to determine the value of the home. VA appraisals are designed to look at recently sold comparable homes to determine what your home is worth. Although VA appraisers have to evaluate the condition of the home, they are not required to evaluate the home at the same level of depth as a home inspector.

5. Financing Your 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.

The VA Funding Fee can cost thousands of dollars. It is paid to the US Department of Veterans Affairs to pay for the VA guaranty of your loan. Rolling this fee into your loan amount lowers the amount of money you need on your closing date.

Like many veterans, you may find it helpful to finance your VA Funding Fee when you purchase your home. You can pay it in cash at closing or roll it into your loan amount. Most veterans and active duty service members finance their VA Funding Fee.

When buying a home, you may be able to get money for closing costs. You can ask the seller to pay for some or all of your 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 on VA loans.

The rules for closing costs can be complicated. Call a VA loan expert at 800-720-0250 to get your questions answered.