How To Apply For Veteran Loans For A New Home
Military service men and women may need help when buying a new home. If they are new to real estate transactions, they won't know how to proceed. This is where a lender can help them the most. However, these are more steps these consumers should follow before approaching their lender about a VA mortgage loan.
Get Online Credit Reports
Service members who are ready to start the process should get a copy of each credit report. These reports are available online through free services. After they access the reports, they should identify any listings that are old. These listings equate to listings that are closed, charged off, or were paid off. However, if they filed for bankruptcy, these listings could remain up to ten years.
They can file a dispute with through each report for invalid listings. The credit bureau investigates these listings. They'll remove the listing if their findings indicate that it is no longer relevant.
After these old listings are removed, the consumer should get their credit score. There are free services for this listings. However, they present one score only. The consumer needs to contact the credit bureaus to get each score.
Evaluate Income to Debt Ratios
Income to debt ratios determine affordability. This ratio determines if the service member's income allows them to afford the mortgage and their existing debts. For a VA loan this ratio cannot be any higher than forty-one percent.
Get Service Records
For a VA loan, the service member must fulfill at least ninety days of active duty. They must complete at least one hundred eight-one days of non-duty. All non-duty days must be consecutive. Veterans who were discharged from the military qualify for this mortgage if they were discharged honorably. They must provide documentation that is verifiable through Veteran's Affairs or their current commander.
Service members qualify for VA loans based on their service record first. Next, they must achieve a credit score of at least 620. When applying for the mortgage, the lender must determine that their income to debt ratio doesn't exceed forty-one percent. Service members who meet the VA loan requirements should contact a lender today.
