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HOW TO DETERMINE IF YOU ARE ELIGIBLE
FOR A VA LOAN
Veteran’s benefits are one of the ways in which we are
able to show veterans our appreciation of their service
to the country.
One key benefit is the VA-guaranteed home loan.
If you’ve wondered how to get a VA loan, here are a
few basics you need to know.
ELIGIBILITY
If qualified, loans can be used to
purchase a condominium or house,
improve a home, build a house, or
buy a manufactured home and/or lot.
The home must be for
personal occupancy.
To proceed with the process you
must obtain a Certificate of Eligibility
(COE) that verifies to the lender that
your discharge conditions and
service requirements authorize you
for VA backing.
A mortgage broker or lender that
specializes in this type of mortgage
lending can help you verify personal
eligibility and apply for the COE.
CREDIT
Generally a VA-guaranteed mortgage is a real plus because:
It guarantees repayment to the lender of at least a
portion of the loan
Thereby allowing the lender to be a bit more
relaxed about credit and credit score criteria.
It is a good idea to familiarize yourself
with your FICO score and credit report
prior to approaching a lender.
If your score is negatively impacted by
issues such as unpaid collection items,
past dues and so forth, you may want
to pay off or pay current so that your
score will improve.
It is important to demonstrate to
potential lenders that you are reliable
about paying debt obligations.
To get a free copy of your credit report,
once each year go to www.annualcreditreport.com.
Lenders also want to know if you have
the cash flow availability to pay the
mortgage note.
This is known as debt-to-income
ratio. Review your debt structure
and determine what percentage of
the household income is committed
to set monthly bills…
… and how much is discretionary
income. The more discretionary
income you have, the better.
EXTRA BENEFITS
Generally if the appraisal value of
the home is the same as or more
than the sales price …
… you may not be required to
make a down payment, or can
pay less than the lenders
normal requirement.
You do not have to be a first-
time buyer, and the benefit can
be reused.
Other qualified veterans may be able
to assume your loan in the future.
EMPLOYMENT
A potential lender wants to know that you have an
adequate and reliable income flow to be able to
make house payments for the life of the loan.
It is safe to assume that your
employment, including length of
employment, will be verified.
Two years of steady employment is
desirable, and if it is with the same
employer, even better.
There are always exceptions to the
rule so don’t despair if you cannot
meet this burden.
Be prepared to explain why the exception, and to
offer some type of evidence as to the
dependability of future cash flow streams.
TOUCHES FINISHING
Once you have worked with
your real estate professional to
find a home, negotiated an
acceptable price …
… signed a purchase
agreement, and applied for the
VA Loan, the lender will begin
the approval process.
If approved, the house will be
appraised and inspected.
Once these processes are
completed a closing date will
be set so the property can be
transferred to you.
With all of this in mind, happy house hunting!
Jimmy Vercellino,
VA Loan Specialist helps
veterans obtain the loans they
are entitled to.
He served in the United States
Marine Corps, and now devotes
himself to the Veteran home buyer in
the Phoenix area, fulfilling a passion
of his while at the same time helping
others achieve home ownership.
Be a proud homeowner today.
For more details call 480-351-5904 or visit the site
www.valoansforvets.com
VA Loans for Vets 7702 E. Doubletree Ranch Road,
Suite 220
Scottsdale, AZ 85258
Phone: (480) 351-5904
Email: [email protected]