04 Oct Contract Guidelines for VA Home Loans
It can be a difficult time as you move further toward your goal of owning a home. You’ll feel the excitement as you pass each mile marker but at the same time you’re bracing for the next one. Remember, the process is not complete until you have closed on your house and the keys are in your hand. Even once you are under contract and your credit history, debt load, and income, are being reviewed, it’s not the time to start taking it easy. This is the time when you hunker down and ensure you are managing your financial situation correctly.
Staying consistent with what has worked thus far
This is the time your VA Loan private lender will process your paystubs, bank statements, and check your credit, to ensure all of your debts are accounted for on your application. During this time, some borrowers begin to believe the hard part is over (once the application is completed). This can lead to slipping up financially and could result in delays in your VA loan being approved or even the cancellation of the loan altogether.
Things to avoid while your application is under review
- Do not change banks or move money around from one institution to another
- Do not take on any new debts. If you must take on the debt, consult with your VA Loan specialist first
- Keep track of your credit limit on any credit cards
- Stay current with all bills, including any current mortgage payments
If you do not stay on top of these things, or there is an increase to your debt to income ratio, you will, at the very least, delay the financing of the loan while additional documents are processed. At maximum, you could risk the VA loan process being canceled, which would cause you to lose the home you have been preparing to purchase.
Keep going and look forward to what’s just around the corner
It’s highly beneficial to be aware of these possibilities while the application, approval, and closing processes are being finalized. It’s not something to worry about. Once you get to this point, as long as you keep doing what you’ve been doing to get you here, you will soon be sitting in the living room of your new house. You are almost there. If you do have any concerns, contact your VA loan specialist and discuss your situation.