How debt impacts VA-loans
Whenever one obtains a mortgage, VA-backed or otherwise, their debts and expenses come under some level of scrutiny by their lender of choice. With VA-backed loans a minimum credit score is never required by the VA itself, but the private lender may have their own standards in place.
Generally, these debts are logged in your credit report – which the private lender will almost certainly obtain in the early stages of your loan’s processing. These credit reports can be requested online, and you’ll want to review your own credit report for any inaccuracies in advance of applying for your loan so that you can document these errors and defend your financial accountability.
Keep in mind that your lender isn’t looking for a reason to deny you, but is instead trying to map out your total expenses versus your total income. Their main concern is guaranteeing that the loan they offer you won’t become too great of a burden, and your best way of confirming that for them is documenting (in as much detail as possible) your sources of income and normal expenses and existing debt. The amounts of residual income a specific lender wants an applicant to have vary based on the area of residence, the size of the family, and other factors – and can be best ascertained by requesting documentation from the lender themselves.
One of the best ways to protect yourself and navigate the lending process with ease is to request such documentation from your lender(s) of choice upfront. Such a request shows your interest and responsibility to a lender, and often starts your financial relationship in an ideal way.