As soon as I realized that my personal financial picture was a little bleak, I started thinking about taking out a personal loan. I wasn't really looking forward to going into debt, but I knew that if I wanted to solve a few short-term problems, a loan would be the way to go. I talked with a few of my local financial institutions to get a good idea of what they could offer me, and then I sat down to go over the paperwork. It was incredible to see how much money I could save by securing a lower interest rate. Check out my blog for more information about loans.
Just because you are a veteran doesn't mean that you will automatically qualify for a VA mortgage for a home. As a veteran, there are certain things that you are going to need to do and certain qualifications that you are going to need to meet in order to qualify for a VA mortgage for a home.
#1 Get a Certificate of Eligibility
First, you need to get a certificate of eligibility. A certificate of eligibility is something that you have to get from your local veteran administrator's office. This document shows that you are actually a veteran. This document is often referred to as COE. Although you don't need it to start the process of applying for a mortgage, the sooner you have it, the sooner your VA mortgage application can progress.
#2 Raise Your Credit Score
Even with a VA loan, your credit score matters. Although you don't need to have a perfect credit score in order to get a VA loan, you still need to have a decent credit score. The credit score requirements are lower than most FHA backed loans as well as other conventional mortgage loans.
Before you try to get a VA loan, get your credit report and find out what your credit score is. This will allow you to take steps to raise your credit score. You can raise your credit score by making payments on time and you can raise your credit score by reducing how much debit that you carry.
#3 Check Your Debt to Income Ratio
With VA loans, they look at your debt to income ratio. They will look at how much money you make each year, verses how much money that you owe. You need to have a certain debt to income ration order to qualify for a VA loan. The lower your debt to income ratio, the better. If you have a high debt to income ratio, it may be smart to pay down a little debt before you start looking for a home. This will make managing the mortgage payment more reasonable, and will help ensure that you can secure the loan rates that you desire for your mortgage.
#4 Keep Steady Employment
Finally, they will look at how long you have been employed. Most lenders want to see that you have stayed at the same job for a while. The standard for how long you have held a job can vary, but in general, many lenders are looking for at least two years on the job. This can vary, but they want to see that you are capable of bringing in a steady amount of money over time and will be able to handle the mortgage payments. They want to make sure that they, as the lender, are in a good position and that they are putting you, the borrower, in a payment situation that you can handle.
In order to secure a VA loan, you need a Certificate of Eligibility, a decent credit score, a low debt to income ratio, and steady employment. Contact a company like NRL Mortgage LLC for more information.
Share27 October 2018
