21 Sep The Three VA Home Loan Tips To Follow
VA loan is a hard-earned military benefit available to eligible Veterans, active military members, national guards and surviving spouses. With no down payment requirements to lower interest rates, VA home loans are backed by the US Department of Veterans Affairs (VA) to help Veterans purchase their dream homes.
Veterans can also use their VA loan benefits to refinance a conventional loan into a VA mortgage. And, while VA loans are extremely easy to qualify for, there are a few things you must keep in mind before you put in your VA home loans application.
That being said, here are the top three VA home loan tips you must follow:
Keep Tabs On Your Credit Score
Did you know that over 70% of US credit reports are full of errors? This could affect your credit score and your borrowing ability. However, it’s true that the VA does not require applicants to have an outstanding credit score. But, you must note that the VA simply backs these loans. These loans are actually provided by private lenders.
Meaning, VA loans come with a government guarantee. So, if an applicant fails to make the payments on time, the VA will pay a certain amount back to the lender. This allows private lenders to offer loans easily, even if you have a shaky credit score.
This, however, does not mean that there are no credit score requirements. You must have a credit score of at least 580 to meet the lender’s requirements. Having a good credit score will allow you to qualify for lower VA home loan rates.
You can work on your credit score by getting it checked for errors, paying any outstanding amounts or making sure you don’t max out the credit cards.
Always Go For Pre-Approval
To qualify for a VA loan, you don’t need to get pre-approved. But you should!
If you have full entitlement, you wouldn’t have to worry about VA home loan limits. However, getting pre-qualified will give you an idea of how much you can actually afford. So, when it’s time to go house hunting, you’ll have a clear vision of your budget and will be able to look for homes that will suit your pocket.
So, although this is not mandatory, it is always to be planned when it comes to buying your dream home.
VA Home Loan Rates: An Important Consideration
Usually, a VA loan is either available at a fixed rate or an adjustable rate. A fixed-rate loan will have loan rates the same throughout the loan term. This won’t affect your monthly payments and you’ll have an actual figure you’ll be required to keep out to make timely payments.
An adjustable-rate involves rate fluctuations. Simply put, you’ll get a lower rate for the first few years of the loan term. After that, the VA home loan rates will fluctuate. Depending on several market values, the loan rates can either go down or up.
If you like stability and plan on staying in the house for a long time, it’s best to go for a VA fixed-rate home loan. However, if you are still on active duty and have a deployment coming soon or do not plan to stay longer in the home, you can opt-out for a VA ARM (Adjustable Rate Mortgage).
Get Started Today: Qualify For a $0 Mortgage Now
As stated above, qualifying for a VA loan is pretty easy. And, with the right planning and a clear objective in mind, you can easily use this hard-earned benefit and buy the perfect home for you and your family. Visit us today to get a free quote.