As a veteran, whether you are retired or are still actively serving your country, you have earned the benefit of borrowing money to buy a home with a VA loan. To prepare you for the process and for a successful application, here are some tips to help you with your upcoming home purchase with a VA loan.
Prepare Your Credit
Although you are eligible for the great benefits that come with a VA loan, keep in mind you will still need to qualify for the loan to get the financing. To get a VA loan, you will still need to apply through a lender and they will review your credit, income, and employment. The credit portion of the application will look at all three of your credit reports, so you should review them beforehand to make sure there are no errors on any of the reports.
Each credit report may have a different credit score and different details on the same credit information, so review it all to make sure such items as the balances are correct, the closed accounts are showing closed, and there are no erroneous late payments or collections on your credit file. It can take the credit bureaus some time to correct errors that you find on your credit report, so review them early and dispute them online so they can investigate further and remove them.
Understand the Requirements
Once you are ready to apply for a VA loan in which to purchase a home, you need to make sure you qualify for the loan terms. You will need to provide your eligibility certificate to the lender, which can help you apply through the military. Your certificate of eligibility (COE) is an actual certificate that you submit to the lender, and you can reapply if you need another one or are applying for a new VA loan.
It is also important to understand that the home you are buying will need to be your own personal residence. So, if you were planning to buy the home and turn it into a rental, this is not eligible for the lending requirements. But if you buy the home and rent out the basement or a separate unit attached to the property, this is acceptable because you will be living in the property. If you plan to rent out the property in the future, you may need to refinance the property with another loan type, especially if you plan to use your VA loan on a new home purchase.
For more information on VA loans, contact a professional near you.