If you are thinking about applying for a VA home loan, there are a few things you will want to do first. By preparing for the application process of a VA home loan, you can be sure that you chances of being approved will greatly increase. Here are four things to do before you apply:
- Make Sure You Meet One of the Requirements: First things first, you want to be sure that you meet one of the requirements to apply for a VA home loan. If you are in the national guard, you will have to have served for at least 6 years before you can apply. If you are an active duty member, then you must wait until you have served at least 181 days. If you are retired, then you will have to have served for at least 181 days and retired with honorable discharge. If you are a surviving spouse, you can only apply for a VA loan if you haven't remarried or have remarried after the age of 57.
- Have Good Credit: When applying for any type of loan, it's a good idea to have a good credit score. With a poor credit score, there is a chance you could be unapproved for the loan or you can receive an extremely high interest rate that just wouldn't be worth it. Be sure to rebuild your credit by paying off creditors, talking with a credit counselor if needed, and checking for any mistakes in your credit report.
- Decide on the Term Amount: Before applying, determine how much you can afford. If you are able to afford the payments for a 15 year term, this is a great way to help pay off your home more quickly. However, if you want to keep the payments smaller, then you will want to apply for a 30 year term.
- Receive a VA Pre-Approval: Before shopping for homes, always be sure that you have a VA pre-approval. This shows the seller of the home that you are seriously interested in the home, which helps put you at the top of the buyer's choice list. This is because a pre-approval shows that a bank is willing to approve you for the purchase of a home quickly and you are less likely to run into problems, which can make selling the home more difficult for the seller.
By doing these four things before applying for a VA home loan, you can be sure that the whole process moves as smoothly as possible. Talk to a professional, such as at http://lowerveteranrates.com/, for more information.