Ready To Purchase A New Home? 2 Steps You Need To Take To Make The Process Smoother
Whether you're an active-duty soldier, or a veteran who has left military service, you are entitled to use government lending programs to finance a home. According to statistics, there are about 21 million VA loan funded homes in the US right now. If you haven't utilized your right to receive a VA loan, you should consider the option for your next home loan.
Regardless of whether you choose a VA loan, or another federally funded loan program to purchase your next home, you need to know that there are some steps you can take to improve your chances of being approved for your loan. Here are two steps you should take now that you're in the market for a home loan.
Know Your Credit Score
If you don't know your credit score yet, you need to find out before you start shopping for a home loan. In fact, you need to do more than have your credit score memorized. You also need to know what your credit report says about you. Lenders aren't just going to be looking at the kind of person you are, or the number of hours you work each week. They're going to be looking at your credit report – every page of it.
Unfortunately, if you don't know what your report says, you could be providing them with false information about you. A recent study found that 5% of Americans had errors on their credit reports. You can improve your chances of being approved for a home loan by knowing what your report says, and disputing errors before lenders have a chance to look.
Once you've looked over your credit report, and disputed all the errors, you'll be ready to take the next important step in purchasing a new home: you'll be ready to get pre-approved for a loan. This step is extremely important. Your pre-approval will tell you exactly how much home you can afford to purchase. Once you have the pre-approval, you'll be free to go and narrow down your search to the homes that fit within your price range. There will be no need to find the home of your dreams only to have your hopes dashed when you find out that lenders won't approve the purchase.
Now that you're ready to purchase a new home, don't take chances with the loan process. The information provided here will help you improve your chances of purchasing the home of your dreams. Contact a company like Texas Veterans Home Loans for more information.