6 Practical Steps To Securing A VA Loan: You Got This!
Posted on: 16 January 2017
If you've served or are serving your country with honor, there are many benefits awarded you. One of which may be a loan at very attractive terms, such as not having to pay any money down. While such benefits are alluring to vets, getting through the paperwork, qualifications, and credit stipulations can be challenging. As with other important matters in your life, though, you should not let challenges stop you. Rather, you should determine the best course of action to achieve success and march forward.
Here are six practical steps to help you secure the VA loan that could change your future:
1. Certify Your Eligibility
Service members on active duty who have held that status for a sufficient amount of time are qualified for a certificate of eligibility in person, through the mail, or online. Others, including spouses of deceased service personnel KIA, as well as Guard and Reserve members may also meet the standards necessary for receiving an eligibility certificate, which validates your status as a veteran qualifying for a VA loan. Depending on your specifics, you can obtain a loan for a multitude of purposes.
Nearly everyone honorably discharged after a sufficient length of service can benefit from this program offered exclusively to veterans. The certificate will move you through the entire process faster and more efficiently; thus, even if you're not immediately applying for a loan, it's in your best interests to get your hands on that certificate.
2. Inspect Your Credit
Unfortunately, record-keeping at the credit bureaus may not be up to the high standards you're accustomed to as a service or former service member. It is not uncommon to discover a credit report riddled with errors; however, the subject of the report will never know about the erroneous data until which time as they inspect it for themselves. Take a look at your report and make sure that every detail is accurate, and if it isn't, contact the appropriate reporting agency and ask them to rectify the situation.
Even if your report is free from errors, it's a good idea to look it over, keep a copy, and check back on it regularly. This report will carry you through to an acceptance for your VA loan, provided you've no major mishaps in your financial history. If you do, consider consulting with a financial advisor, who can get you back on the road to credit-worthy status.
3. Visit A Loan Officer
A well-versed, well-prepared VA loan officer will be capable of answering any questions you have and of guiding you straight to approval. They can tell you how much you may qualify for, based on individual variables, and explain the complicated matters of closing on a home and of insuring it properly, according to regulations which may be specific to you as a service member and VA loan applicant.
4. Examine All Your Options
While VA loans offer a convenient, affordable, and flexible way for you to obtain a home, there are exceptions to practicality, and on those occasions, another type of loan may be more beneficial for you. For example, if you can afford a sizable down-payment (which would not apply to a VA loan), a conventional loan (such as from your local bank) would eliminate the funding fee associated with a VA loan, which can be significant.
Weigh all of your options and decide the best course of action, which, although in many cases will be the VA loan, might actually be something entirely different.
5. Curb Unnecessary Spending
If you're currently on active duty, you likely don't have a long list of expenditures required for daily living, as matters such as rent and commuting are taken care of for you; however, in every other aspect of your financial life, no matter what your status as a service or former service member may be, it's important to demonstrate restraint and sensibility with every dollar you spend.
The favorability of your credit profile could depend on your ability to manage spending, as well as savings; thus, being frugal, or at least wise, is essential to maintaining a satisfactory record. Lenders look at your ability to pay, debt-to-earnings ratio, and other factors when assessing you as a risk factor.
6. Speak With Your CO If You Encounter Setbacks
Not everyone has the necessary credit rating to qualify for the most favorable loans and you may face other, even more complicated challenges on your path to securing a VA loan; however, if you're active duty, active reserve, or still in contact with your former military family members, consider striking up a conversation with your CO or other pertinent figure. If a tedious detail is holding you back, a good word from your commanding officer might get the ball rolling in your favor and rather quickly, provided the detail is minor. For example, having difficulty verifying your status or service record could result in endless delays with your paperwork, but your CO may be able to speak up on your behalf, expediting the process.
There are a number of ways in which an application can stray from a successful path, though that doesn't have to be permanent, provided you are qualified. Don't hesitate to advocate for yourself and your record or to ask someone higher up to do it for you. The military is notorious for red tape and delays, as you may well know, so be persistent and relentless when trying to clear the hurdles presented by paperwork.
Use these six steps to get you closer to where you want to be in life, with a VA loan. Although navigating the paperwork may be confusing at times, you've faced far greater challenges and come through, so ultimately, this should not slow you down, moving forward. For more information, talk with companies like Texas Veterans Home Loans.
Share