Government guarantee, assumable loan, low or no down payment are some of the top benefits of a VA loan. This financing option is only available to military service members, veterans, spouses, and survivors.
Even if you fall into one of these classifications, it all depends on submitting a VA loan application that meets the approval guidelines. Want to get approved for a VA loan right away?
If you answered yes, we’ve got you covered. Here are 5 tips you should follow to speed your loan application process and get your approval in no time.
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1. Make Sure You Meet the Basic Requirements
To obtain any VA guaranteed loan, you’ll need to meet the active duty requirements. Even if you meet these prerequisites, you’ll need to request a Certificate of Eligibility. Keep in mind you must request this document as well if you are a spouse or survivor of a service member.
Veterans and their spouses will submit discharge or separation paperwork (Form DD214). Active duty service members will need to request a statement of service from their superior.
2. Check Your Credit Score Before Applying
VA loan requirements establish a minimum credit score of 580. Before applying, you should take a look at your credit report to learn where you stand. By law, you can request one free credit report every year from each major credit bureau.
Try your best to request all three credit report copies. Keep in mind your information may vary on a credit bureau basis. If you find any incorrect information, you should reach out to the credit reporting company to get it fixed.
3. Take a Look at Your Debt to Income Ratio
Getting approved for any loan depends on meeting the underwriting guidelines followed by your lender. How much of your income goes to paying your debt accounts? Your lender will divide your monthly debt payments by your gross income.
If this ratio is quite high, you might not get approved for your VA loan. Try your best to lower your debt before applying. This strategy will help you decrease your debt to income ratio and boost your credit score.
4. Verify the VA Loan Limits in Your Area
If you haven’t taken a VA loan, you’ll be eligible for full entitlement, therefore, no limits on your home loan amount. However, borrowers will have limited entitlement or limits under certain circumstances.
Having an active VA loan, refinancing a VA loan into a non-VA loan, and short selling a prior VA loan without repaying in full are some examples of these conditions. If this sounds familiar, you’ll only be able to get approved for a loan that meets your county limits.
5. Obtain a Pre-Approval Before Going House Hunting
Even if you meet all the requirements, you should always get a pre-approval before looking for your dream home. When a lender extends a pre-approval letter, they verify your financials and creditworthiness.
You’ll be able to shop for a home that you can afford. Also, sellers and real estate agents will take you seriously when placing an offer.
Can You Submit a Successful VA Loan Application?
You can submit a successful VA loan application if you follow our tips. Make sure to submit a complete application including supporting documentation.
If you’re unsure about completing or what documents to submit, you should consult your loan officer. Your lender’s representative will be able to guide you step by step during your application process.
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