5 Most important things to keep in mind while applying for VA Home Loan

VA Home Loan

5 Most important things to keep in mind while applying for VA Home Loan


While purchasing a home can be quite daunting and pain staking for most, with the process of loan application, meeting criteria etc., the veterans who have served the nation are well taken care of by the Veterans Administration in acquiring loans for the purchase of their homes. This administration helps provide service members, the veterans and their spouses or other surviving members with home loan guarantees along with certain other housing specific programs in order to aid such service members and veterans own or build their home.

Such VA home loans are given via private home lenders like banks and mortgage institutions and the VA guarantees a certain portion of this loan in order to help the lender provide better deals to such individuals.

However, there are certain aspects which all veterans and service members must keep in mind prior to applying for any such loan. Some of the most important aspects have been provided below:

  1. Have a clean Credit Report

A clean credit report, is crucial during the loan application process since it helps you acquire a home at the best terms and rates possible. Prior to applying for any such home loan, one must get a copy of their credit report which can easily be download via the annual credit report website. It is then important to scour through such a report in order to ensure that your accounts are clean, payments have been made on time and there aren’t any late payments or payment defaults. This is extremely important since most home loans get rejected due to serious accounting or payment related errors reflected through the individual’s credit report. Moreover there are certain VA credit guidelines which can be checked from the official VA website, for further assistance.

  1. Ensure that there aren’t Job Gaps

While it is common for most lending institutions to want at least a two years of continuity in jobs, it is understandable that this could be difficult for veterans, especially those who have only recently forgone the military services. In this case, however, lenders would usually rely on previous employments, education and experience and scour through any discrepancies within the same. Hence, if there is a gap in between the past jobs, then the lenders might insist upon a few more months of work experience before they approve the loan. Thus it is important to ensure that any such gap is also made up for in duration in accordance to the length of gap or the seriousness of the prior discrepancy.

  1. The importance of sticking to the budget

While it is very easy to get caught up in the fact that one may have received a certain amount as preapproval, it is not always wise to apply for the entire preapproval amount. This is because, owning a house comes with a lot of other expenses as well such as insurance, property tax, maintenance etc. Thus, it is always prudent to go for a loan amount a few dollars lesser than the preapproved amount which is provided.

  1. It is crucial to provide the finance up-front

Almost every VA home buyer purchases their house without making the required down payment which can pose to be a difficulty. Even though it is not unheard of, for the seller of the house to pay for all the closing costs with regards to the house, the buyer must still have the money ready up-front in order cover any requisites such as earnest money deposits, the appraisal as well as the home inspection which is mandatory. Even if one is assured of getting all the money back, the individual must still be careful and ready for any more surprises and have the money ready up-front.

  1. Any recent Late Mortgage Payment is an issue to be avoided.

Most home loan providers will check if the individual applying for the same, has any late payments towards his or her mortgage of 30 days or more. At times even the rent regularity within the last 12 months is checked to ensure credibility. For example, if the individual has failed to make any mortgage payments about four months ago then such a person will have to mandatorily pay for another eight months without making any defaults, in order to be eligible for the VA Home Loan. Currently only a 30 day delay in payment within the past 12 months is permitted by the Veterans United organization.


While the Veterans Administration is instrumental in providing servicemen and veterans with home loans and other such benefits, it is still extremely important for such individuals to meet the above mentioned important criteria, in order to ensure a smooth transition of loan disbursement without any discrepancies which may cause hindrances.

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