4 Things To Check When Applying for a VA Loan

Have you ever heard of a loan that does not require down payments, private mortgage insurance, and has no prepayment penalties? You might qualify for it if you served in one of the United States’ military branches.

VA loans are mortgage loans backed by the United States Department of Veteran Affairs (VA). The VA guarantees part of the loan, allowing lenders to offer more favorable terms than traditional mortgage loans.

VA loans are offered to veterans, active duty members of the military, and surviving spouses of service personnel who perished in the line of duty. However, there are still specific qualifications that prospective borrowers still need to meet. Here is our four-step checklist for people who want to apply for a VA loan:

Checklist for VA Loan Applications

1. Eligibility Requirements. To qualify for a VA loan, a borrower must have served in the military and met specific service requirements. Active duty service members must have served at least 90 consecutive days during wartime or 181 days during peacetime. Reservists and National Guard members must have served at least six years. Those discharged due to a service-connected disability may be eligible after serving just 90 days. Surviving spouses of uniformed personnel who perished in action also qualify for VA loans.
2. Necessary Paperwork. The first step in applying for a VA loan is to gather the necessary paperwork. This includes your DD-214, your discharge document, and proof of your income and assets. You will also need to secure proof of your credit score, which should be at least 620, and any other documentation the lender may require. Additionally, you may need to provide a copy of your Certificate of Eligibility (COE) from the VA, which is required for all VA loan applications. Once all the required paperwork is gathered, you must submit it to the lender for review. The lender will read your application and determine whether you meet the criteria for a VA loan. If approved, the lender will provide you with a pre-approval letter, allowing you to begin shopping for a home.
3. Credit Score Solid Debt-To-Income Ratio. Are you looking to purchase a home and considering a VA loan? If so, you’ll want to ensure your credit score is in good shape before applying. It would be best if you had a good credit score to secure a VA loan and better interest rates. The VA itself does not require a minimum credit score, but lenders typically look for a score of 620 or higher. This doesn’t mean you can’t get approved for a VA loan with a lower score, but it may result in higher interest rates. It’s essential to check your credit score before applying for a VA loan. Get a copy of your credit report from one of the three major credit bureaus (Equifax, Experian, and TransUnion).
4. Reputable VA-Approved Lender. No two VA-approved lenders are the same. When looking for a reputable VA-approved lender, it’s essential to do your research. Look for lenders with a good reputation with veterans and offer competitive rates and fees. It’s also essential to ensure the lender is knowledgeable about VA loan guidelines and has experience in the VA loan process. If you’re looking for VA loans in Cape Coral, American Mortgage Solutions can help you in every step of the process.

Conclusion

Securing a VA loan can be a great way to finance a home, but it’s essential to know the details of the process. By following the steps outlined above, veterans can be sure they’re getting the best deal possible and working with a reputable lender. With the proper knowledge and preparation, veterans can be confident that they’re securing the best VA loan available.

Call Your Florida Mortgage Specialist Now!

Securing a VA Loan in Cape Coral has never been easier. American Mortgage Solutions will help you secure the mortgage you need to build a home for your family. Contact us today at (561) 316-6800 to learn more.