3 Important Tips For Securing A VA Loan
Buying a home can be challenging, but help is available if you qualify. VA loans are excellent options for veterans who want to purchase a home in the most affordable manner possible. If qualified for a VA loan, you can avoid PMI and down payments in most cases. Of course, proper preparation is essential if you want to apply and secure a VA loan easily. Here are a few tips to guide you through the process.
Collect Your COE
Applying for a loan requires many different forms and documents, such as income statements, bank records, and even tax returns. Applying for a VA loan requires many of the same documents, but also one imperative document — the certificate of eligibility.
Also known as the COE, the certificate of eligibility shows the lender you are eligible for the VA loan. In most cases, this certificate can be found online, but your lender may also be able to collect the COE for you.
Check Your Credit
Your credit score matters when you are applying for a home loan. Many people believe credit does not matter when applying for a VA loan but that is not necessarily true. Having excellent credit is not required to buy a home with a VA loan, but it can help, especially if you want the lowest interest rate possible.
Check your credit to determine your credit score. You should also pay attention to any late payments, collections, or charge-offs that have been reported. Pay off any of these outstanding issues. In addition, consider paying down your debt to improve your debt-to-net ratio. This will also improve your credit score.
Finally, a unique way of improving your credit score is by asking for an increase in your credit limits. Contact your credit card companies and request the increase. The more available credit you have, the better your credit score will be.
Know the Occupancy Requirements
Most people who are applying for a VA loan do not truly understand the occupancy requirements they will need to meet.
The home you are buying with the VA loan must be used for your own personal living arrangements, meaning the loan cannot be used to buy an investment property. It is also not permitted to buy the home to use for work purposes, and you must occupy the home within a reasonable amount of time after closing on the loan.
A VA loan can help you achieve the dream of homeownership. This guide and your lender will guide you through the process of applying and securing a VA loan today. Talk with a lender like Aligned Mortgage if you have any questions.