Since the creation of the original GI Bill, VA home loans have functioned in aiding active duty personnel, and veterans realize the dream of homeownership. Over the past 70 years, the loan program has assisted 18-million people receive the financing needed in securing a mortgage. Today, just as it was true following the conclusion of World War Two, veterans are more susceptible to monetary troubles than their civilian counterparts. On average, the assets of VA borrowers amount to less than $7,000 and eight out of every ten borrowers would be unable to qualify for conventional loans on the basis of underwriting guidelines. Offering no down payment requirements, no minimum credit scores, ample refinancing options and lower interest rates than conventional loans, the program, quite simply, offers military members advantages that other loans do not. Furthermore, the presence of previous short sales, foreclosures, and bankruptcies do not necessarily preclude loan eligibility. According to the Department of Veterans Affairs, 73,000 veteran homeowners defaulting on their mortgages were able to stay in their homes in 2011 because of the loan program.
22 million veterans currently live in the country, for those interested in pursuing property, there is no better alternative than the VA loan.
Whether you are flying off a carrier or filling out an application for a VA Loan, The devil is in the details. Accuracy is of paramount importance in the VA Loan application process. You will need to take time to collect all of your documents, pull a copy of your credit report and, if necessary, get it in good shape to qualify for a VA Loan.
It’s best to start working on your VA Home Loan application about a month before you want to buy a home. Pull a copy of your credit report (or request one from VA HLC) to check your credit scores, and those of your spouse if you have one. Check your credit report carefully for accuracy. If you find anything wrong get it corrected. If you have time you can pay down balances, start paying all of your bills on time and improve your debt to income ratio before you apply for your VA Loan. Living frugally to improve your credit score is a great way to understand what it feels like to pay for a home before you actually make a commitment.
Start collecting all of the papers you will need to fill out your VA Loan Application. These will include your Veterans certificate of eligibility, copies of your discharge or separation papers, two years of tax returns, your last pay-stub, your last bank statement and copies of any retirement and investment accounts. You may want a copy of your spouse’s tax returns, etc. if he/she is to be a co-borrower on the loan. Make sure that all of these documents are ready and available in one place along with your credit report. Xerox everything so that you can give the lender anything they want without disrupting your file.
It’s time to sit down and apply for a VA Loan. Because you are familiar with your finances and have all of your documents in one place, this should go fairly smoothly. You MUST fill out your VA Loan Application accurately and completely. It should match the most up to date information on your credit report, bank statements and payment stubs. It’s very important you get all of the dates and numbers correct because your VA Loan could be denied if you make mistakes. In today’s climate, lenders are very wary, and any mistake could be interpreted as deception. These mistakes could result in your VA Loan being denied. If your loan is denied, it will be harder and/or more expensive for you to get a loan in the future. Proofread your application multiple times. If you have done your homework and have an accurate application, there is a good chance you will get your VA Loan.
Finally, it’s time to look for a house, once you find one, you will enter into a purchase agreement and getting your VA Loan will be one of the contingencies. If you don’t get a VA Loan, a high probability exists that you won’t get the house. Contact the nearest VA home loan centers office. They will help connect you to VA approved lenders.