For veterans, or their surviving spouses, the dream of buying that first house can become a reality sooner than you think when you finance it using your VA loan benefits.
About a year or at least six months before you apply for any type of loan, there are some must-haves and must-do’s …
…that will make the entire process flow more smoothly when you view the transaction through the eyes of a lender:
1 Lenders like to see what you owe and what you save, not what you could access on demand.
Perhaps you have several credit cards with very little or no balances and other open lines of credit.
Whether or not you use them much, you could, and that presents lenders a liability.
Nothing can keep you from charging them to their limits after closing and then being unable to afford your monthly mortgage payment.
2 Increase your cash flow.
This can have an impact on the amount a lender will finance, and possibly qualify you for better loan products. You can do this by closing any open lines of credit or cards you never use.
At a minimum ask the issuing banks to lower credit limits. You can always apply for new cards or increased credit limits at a later time.
About a year ahead, gather copies of these into a folder and keep them updated: Proof of current employment and income Two to three months of bank statements for: checking, savings, IRAs, investments, credit cards
Two years' tax returns and W-2s Photo ID, Social Security card Current lease agreement All revolving credit and installment payment agreements Court ordered child support payments
Deeds for real estate assets DD-214-Report of Separation VA Form 26-1880-Certificate of Eligibility, issued by the Veterans Administration
Lenders study your earning, saving and spending habits for patterns that indicate not only your ability to repay a mortgage, but your money management habits for necessary and unnecessary expenses.
An established, regular saving habit of any amount is as important as a recent history of on-time credit and installment payments.
A habit of saving regularly demonstrates responsibly anticipating and preparing for future expenses. If you are not in a saving habit, begin with your next paycheck.
Clean up your credit reports. Updated information can take 90 days to appear on credit reports. Begin early to verify accuracy of yours, and follow instructions for requesting corrections.
People with a string of given names need to provide their complete name for the best turnaround.
Consult with an experienced real estate broker, one who specializes in loans for veterans, to pre-qualify you.
They will walk you through every step on the path to home ownership. Definitely shop for the best rates and loan products.
Having as many details as possible in order makes the entire experience more exciting and enjoyable without having to fret over:
Missing paperwork • Fuss with cluttered credit reports • Obtain necessary certificates on tight deadlines.
Now that you know how to prepare, once you get all your documents together, you will be on a faster track to owning your first home using your VA loan benefits.
Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.
For more details call 480-351-5904. Visit the site at http://valoansforvets.com/
Jimmy Vercellino, NMLS 184169 Mortgage Originator Specializing in VA Loans The views expressed here are those of the individual author and do not necessarily represent those of First Choice Bank (NMLS #: 177877) and First Choice Loan Services Inc. (NMLS #: 210764). Equal Housing Lender. 7702 E. Doubletree Ranch Road, Scottsdale AZ 85258 The views expressed on this site are those of the individual author and do not necessarily represent those of First Choice Bank (NMLS #: 177877) and First Choice Loan Services Inc. (NMLS #: 210764). Equal Housing Lender.