That “perfect” loan for you. The one you can get approved for with a VA loan and not have to worry about your application being denied or rescinded. But what happens when you find out that the loan isn’t a perfect fit after all, and the lender won’t change their mind?
What is a VA loan?
To be eligible for a VA loan, a veteran or their spouse must be receiving certain benefits, such as compensation or pension. The government makes up the difference between the mortgage’s total cost and what the borrower can afford. There are some exceptions.
A VA loan is a loan that is guaranteed by the United States Department of Veterans Affairs to help veterans, servicemembers, and their dependents purchase or refinance a home.
How to apply for a VA loan
VA loans are mortgages that can only be obtained by veterans or active duty members of the military. They’re available for financing homes, flats, and vacant land. The VA home loan guidelines apply to all counties within the United States. You must also have a credit score of 580 or higher to qualify for a VA loan.
The VA will approve your loan if you’re disabled and totally unable to work. If you are not disabled and can work, the VA will also provide a three-year guaranty that protects against early termination.
Top 5 mistakes when applying for a VA loan
The first step to getting approved for a VA loan is to fill out the application form. Be sure to answer all of the questions and provide all the necessary documentation. The biggest mistake that many people make when applying for a VA loan is leaving off important information. When filling out the form, make sure you include your VA Loan Eligibility Status Code or VEPC code on Line 4-2 of your application. Doing so will ensure that you get approved quickly and have a better chance at getting the best rates from your lender.
If you are applying for a VA loan, or any other loan that is secured by real estate property, be sure to avoid making the following mistakes. With these guidelines in mind, you will have a much better chance of getting the mortgage that you need.
How to approach a lender with an issue on your VA loan
If you are having issues on your VA loan with a specific lender, below is a guide of what to say in order to get them to fix the issue.
It is important to know the specific lender you are talking to. For instance, if you have reached loan-to-value (LTV) of 90% or less and have a short wait time on your VA Home Loan, then your lender will be more likely to approve your application.
The VA guidelines are a good starting point for determining eligibility. If an applicant’s debt-to-income ratio exceeds 45 percent, their application will be denied.
The bank issued the guidelines in the United States and other countries, including China. The guidelines include very specific requirements for those interested in getting a loan to purchase a home with what is known as an FHA-insured loan.