The VA loan is a type of government-backed mortgage that helps veterans and active duty service members purchase homes. These loans are attractive to many people because they don’t require a down payment. They have low-interest rates and usually offer no closing costs.
However, there’s one catch: you can’t get an approved loan without the approval of your Veterans Affairs (VA) lender. In this blog post, we will discuss 3 surefire ways to get approved for a VA loan.
Have A Guarantor Co-Sign For You On Loan
One way to get an approved loan is if someone else agrees to take responsibility for your home payments. If anything happens, such as injury or unemployment, this person would be called a “co-signer,” and they are an immediate family member like a spouse or parent.
They should have enough savings and income to make not only their mortgage payments but also yours in case of emergency. In other words, they have what’s called an “overlapping” credit history with you. If this applies to you, it may be possible that even when VA lenders look at your finances alone, you will still qualify for a VA Loan(Meaning without even considering those of your parents).
Get pre-approval for your loan before you start the purchase process. This is another way to get a loan, but it has an important caveat. You’ll need to have enough money saved up so that you can put 20% of the home’s cost down as a down payment to qualify.
The advantage here is that when you find the property that suits your needs, the VA approved condo list will let you know right away. They may also be able to give details on what they would offer as interest rates once all requirements were met. Then show how much more affordable their deal would be than other lenders in the area.
Consider Using A Military Credit Union Instead Of An Approved Loan
While most people immediately associate joining the military with taking out loans from the Department of Defense (DoD), this isn’t true. These institutions offer more than just loans to active duty personnel and veterans alike. While they can provide some level of significant benefits like buying homes at discounted rates or lower interest rates, a VA-approved lender may be more suited to your needs.
Why? Credit unions are nonprofit organizations and thus do not need a high level of profits. Unlike banks that must maintain to stay afloat, they don’t carry as many fees or penalties!
You can also get Approved Loan approval by checking with all lenders available in your area. -local ones like Navy Federal Credit Union or national institutions like Chase Bank and find which one offers you the best package. This way, you’ll know exactly what benefits will come when it’s time to sign on the dotted line!
Work With Friends And Family Members
If none of these other methods work out but getting an Approved Loan is still your goal, then it’s time to get creative! As long as you have a good amount of collateral (like another home or car), for example, or if you’re willing to put up the 20% down payment required by some lenders, look at what other people around you can offer.
They may be able to act as guarantors and guarantee that they’ll repay any debt incurred in case things go south, which would qualify you for an approved loan after all.
Closing Thought
Once all this is done, you’re ready for the next step in the process! You will now be able to apply online or over the phone without ever having to go into a VA office and discuss your financial situation with someone else.
Keep these steps and some of the other information mentioned above in mind when it’s time for your mortgage application so that you can ensure easy approval.
If any new rules are being introduced for a mortgage application, ensure that additional documentation is provided before submitting again because they may not approve if there are changes. Your certificate of eligibility needs to be renewed every two years.
