Tips for Veteran Mortgage Loans

Reviewed: June 30, 2016
By FinanceWeb

Veteran Mortgage Loans are very beneficial to their applicants. In some cases, the loan can be guaranteed with zero money down, for up to $417,000. These loans also require no private mortgage insurance for their approval, which could offer you significant monthly payment savings. Additionally, you can use the veterans’ mortgage loan to refinance another existing loan – even if the loan is not a veteran mortgage loan.

While using the Veterans Affair mortgage loan, unexpected issues and hiccups might and do occur. Therefore, prior preparation is essential. Below are among the principal tips for veterans considering the VA mortgage loans.

Start Without a COE

To launch the VA loan process, you do not require having a VA Certificate of Eligibility. It is prevalent for lenders to get you this document later in the process. If you are concerned about your entitlement amount in addition to needing a proof of your benefit, however, you can certainly obtain the document. Typically, the quickest way possible is by the use of the eBenefits portal. You can start your pre-approval and pre-qualification process early enough.

Score Your Credit Report

For you to land a VA home loan and the type of terms and rates available, your credit profile will play a paramount role. Before pursuing your veteran mortgage loans qualification, get a free copy of your credit report. Getting your credit report is free and easy and requires no monthly credit monitoring or credit card information. You would want to examine it for errors ranging from reporting errors about late payments to accounts that do not belong to you.

Job Gaps are Problematic

Ideally, lenders want proof that you have had your job for not less than two years. However, that is not always viable especially for veterans who recently separated from the forces. Nevertheless, it is possible to secure VA loans even with fewer than two years though it requires your loan specialist’s closer look. Lenders want to see continuity in your work, education, or experience. If a gap of unemployment is available, you need to wait until you return to work for some few months.

Not a One-Time Benefit

Once you earn the veteran mortgage loans benefits, it will be yours for life. The program is not for first-time borrowers or a one-time lending option. These benefits can be used repeatedly. In fact, it is possible for you to have more than one VA loan at the same time. So let no one claim you are ineligible because you acquired the same loan a decade ago. It is even possible to get another loan after defaulting the previous one.

After you understand your eligibility for your VA loan, research is the next thing you need to do. Different packages possess different pros and cons. Fixed rate loans are steeper than adjustable rate mortgages, though they may ensure predictability. The flexible rates for veterans’ home loans permit you to plan your budget and rank it instead of disseminating your cash too thin. Do your homework accurately to warrant you get the most competitive rate you can. Always do not take the first offer you are presented with.