Helpful Tips to Get a VA Loan
The VA loan is one of the most popular and well-known types of veteran loans available. If you are trying to purchase a house, this can be one of the most rewarding financial experiences in your entire life. These are government-backed mortgages that are more forgiving and flexible requirements than other types of loans. Some benefits include zero down payment and no need for mortgage insurance. Some tips to help secure veteran loans can be found here.
Begin with the COE
You don’t have to have all your paperwork in place before starting the application process. While having the Certificate of Eligibility in hand is beneficial it is not required to start the home loan process for a VA loan. Many lenders will help you get this during your preapproval process.
If you want to have the COE in-hand, you can use the VA’s eBenefits online portal or contact the nearby VA Regional Loan Center to learn more.
Get to Know What’s on Your Credit Report
When applying for any loan, your credit history and credit report will be a top concern. You don’t have to have perfect (or even near perfect) credit to receive a VA loan. However, the higher your score is, the better rate you may get. Also, you can avoid major problems moving forward with the loan.
While you will not be able to see your actual score from your free copies of your credit report, you can look at the information for any potential errors, mistakes, or bad accounts. It is estimated that about 25% of all credit reports include some type of error or mistake that could lead to a credit denial.
Know the Acceptable Uses for the Loan
When you are looking to apply for and secure a VA loan, you should plan to use the funds to refinish or purchase a primary residence. This includes single-family homes, new construction, manufactured or modular homes, condos, or even multi-unit properties – as long as you are living in one of the units. This is not a program for purchasing vacation homes, working farms, investment properties, or something similar. However, you can convert the primary residence into a rental property once you have lived in it for a certain amount of time.
As you can see, there are more than a few factors to consider when it comes to getting veteran loans. With the information here, you will be on the way to securing the funds needed.